Mutual Fund Returns Calculator

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Mutual Fund Return Calculator can fulfil investors in deciding how far they will attain their objectives. The calculator's stimulation considers various factors, including the anticipated investment amount, Rate of return, and time horizon. The mutual fund returns calculator can be very helpful for investors who want to approach their investments with a goal-oriented mindset.

What is a Mutual Fund Calculator?

The mutual fund return calculator is an easy tool that you can utilize to calculate the returns a mutual fund investment could generate. A mutual fund calculator for returns is workable and helps you accurately calculate the approximate returns.

All you want to do is enter the amount you need to invest, tenure and the expected Rate of returns. The calculator lets you quickly see the projected mutual fund return details.

How Can Mutual Fund Returns Calculator Help You?

Before investing in a mutual fund scheme, assessing your return on investment is a good practice. For doing so, an MF calculator is the perfect tool as it is simple and easy to operate. You will not encounter any troubles even if you use it for the first time.

Check out how it can help you:

  • An MF calculator will provide the total estimate for 1, 3 and 5-year investment horizons.
  • It assists you in designing your future financial strategy based on the approximated returns.

Types of Mutual Funds:

Mutual Funds can be of different types, each suitable for different investment goals.

  • Equity (Growth) Funds
  • Fixed-Income Funds
  • Balanced
  • Money Market Funds
  • Index Funds
  • Sectoral Funds
  • Fund-of-funds

How Does Mutual Fund Returns Calculator Work?

A mutual fund calculator uses a combination of user inputs, such as the amount invested, time frame, and fees, along with historical data and mathematical formulas, to calculate the expected returns of a mutual fund.

What is the Mutual Fund Returns Calculator Formula?

You can take the following formula to calculate the Lumpsum amount of returns on investment:

M = P (r/100 + 1)^n where,

M: amount you will receive at maturity

P: principal amount

r: estimated Rate of return

n: holding period (in years).

Example:

For example, using the formula, if you have invested ₹6,00,000 for ten years at an estimated rate of return of 12%, the estimated return would be ₹18,63,509.

You can take the following formula to calculate the SIP amount of returns on investment:

M = A [ (1 + i)n – 1] x (1 + i)/i

Where:

M: Maturity amount

A: SIP contribution per period

i: Rate of return

n: Holding period (in months)

How to use Mutual Fund Returns Calculator?

Use the Mutual Fund Calculator based on your investment.

Lumpsum investment:

  • Select the One-Time Investment (Lumpsum) option in the Mutual Fund Calculator.
  • You then fill in the investment amount, the expected Rate of return and the investment duration.
  • The MF Calculator shows you the value of the maturity investment.

SIP investment:

  • You should select the SIP option in the MF Calculator
  • Then you fill in the amount of investment, duration of the SIP and frequency of the SIP.
  • The MF Calculator shows you the value of your investment at maturity.

Benefits of Mutual Fund Returns Calculator:

Here are a few important benefits of a mutual fund calculator:

  • The calculator can provide a near-precise approximate of any returns due from your scheme of mutual funds.
  • You don't have to undertake manual calculations, so you save effort and time, making important decisions fastly.
  • It is a tool easily availed online at any brokerage or banking portal. Furthermore, it is simple to use.
  • You can compare mutual fund schemes by gauging returns based on past performance and selecting schemes matching your needs
  • You get certain tax benefits through mutual fund investment.

Conclusion:

Mutual fund returns calculators are essential for investors looking to maximize their returns. They allow for accurate calculations, easy comparison of different funds, and informed investment decisions. By using a reliable calculator and following key tips for investing, investors can achieve their financial goals and secure their financial future.


FAQ'S


How are Mutual Funds Returns Calculated?

Like other asset classes, Mutual Funds returns has calculated by computing the value of your investment over time compared to the initial investment. The net Asset Value of an MF indicates its price and has uses in calculating returns from your Mutual Fund investments.

Which return is important in a mutual fund?

Two of the most popular methods are Annualized returns and Absolute returns. Absolute return is the simple increase in your investment in percentage. It needs to take into account the time taken for this change.

What is the annual return on a mutual fund?

It is the percentage increase or decrease in the value of the investment in that period. Mutual fund returns are in 2 different ways: absolute and annualized.

What is the best benefit of a mutual fund calculator?

MF is one of the most popular investment choices in the U.S. Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing.