Mutual Fund Calculator

What is a Mutual Fund Calculator?

A mutual fund calculator is an online tool that enables traders calculate their returns and the future value of an funding primarily based on a sure funding method. Since mutual fund buyers ought to ideally take a aim-oriented method for his or her investments, a mutual fund calculator in India can help them recognize how a ways they’ll acquire their goals based totally on the planned amount of funding, time horizon, and fee of go back. The mutual fund returns calculator makes matters less complicated for you as it calls for simply three inputs: your investment quantity (month-to-month SIP or lumpsum), time horizon, and a rate of go back primarily based to your investment strategy.  

How Does a Mutual Fund Return Calculator Work?

A Mutual Fund Return Calculator facilitates you in estimating go back of your mutual fund investments. It can calculate your return for each investment methods: SIP and Lumpsum. So, how does it work?
It works on a easy set of rules, wherein you just have to enter a few information, and it will calculate your go back within a few seconds.
To estimate the go back using the calculator, you ought to enter 3 variables: your investment amount (SIP or Lumpsum), funding period, and investment approach.
For investment approach, you may pick from 4 funding techniques- Aggressive (Expected return 12%), Conservative (Expected return 6%), Balanced (Expected go back eight%), and customised. Under the customised investment approach option, you could enter your own anticipated price of go back.
After entering some of these variables, the mutual fund return calculator suggests the envisioned destiny price of your investments, along side the bifurcation of the full amount invested and the profits.

How to use the Mutual Fund Returns Calculator?

The mutual fund calculator is a -step manner that makes mutual fund return calculation a breeze. When you operate a mutual fund calculator on-line, you’re confronted with a number questions. For new buyers trying to use any other Mutual Fund returns calculator in India, this could be quite overwhelming. This is why the calculator has a streamlined layout that allows traders with mutual fund return calculation in smooth steps.
Step 1: Choose Your Investment Method
Choose among a lump sum or SIP calculation from the top-right corner.
Step 2: Enter Investment Amount
Enter the quantity you desire to invest (or the month-to-month contribution in case you selected SIP), the wide variety of years you want to maintain the investment for (or maintain SIP contributions), and the funding strategy.
Step 3: Select Your Investment Strategy
Choosing the investment strategy on the calculator gets rid of the want to estimate a rate of go back due to the fact the set of rules does it based totally on the strategy’s hazard profile. For example, aggressive techniques usually supply higher returns than conservative strategies because they arrive with more risk. If you decide on, you furthermore might have the option to enter a custom rate by selecting Custom from the drop-down menu.
You’ll now see your funding’s growth inside the shape of a bar chart over numerous time frames. On the proper, you’ll get an outline of the overall funding, total gains, and the destiny fee of your funding.
As you maintain changing any variable in the MF go back calculator, the chart at the lowest and the assessment will alternate automatically. You’ll also see a number of the nice mutual funds at the right of the calculator primarily based to your funding strategy. If you show up to be interested in any of these price range, use the “Invest Now” button, and spend money on Mutual Funds the usage of the SIP or lump sum investment course in minutes.

Mutual Fund Calculation Formula

To calculate mutual fund returns manually, you want to recognize the mutual fund go back calculation components. It’s usually a lot less complicated (and quicker) to apply the mutual fund returns calculator. This is in particular authentic whilst you’re looking to evaluate returns out of your mutual fund funding generated the use of both a lump sum or SIP strategy. Even if you select to use the Mutual Fund return calculator online, it’s helpful to understand the formula that turned into used to calculate the returns on mutual price range that you could receive out of your investments. Following are the mutual fund calculation formulation. You shall notice that the formulae for each modes of funding are exclusive. Wonder why? Read on.

How Can a Mutual Fund Calculator Help You?

India’s mutual fund enterprise grew over 2x among 2016-2021. The united states is taking a liking to how they are able to advantage publicity to a various portfolio created through an professional. Mutual funds assist investors streamline their investment efforts and even facilitate consistency and field via SIP.
Mutual finances explicitly warning the traders, “Past performance doesn’t assure future returns.” Investors have to, consequently, recognition on how the fund may additionally perform in the destiny. This is wherein a mutual fund calculator can are available reachable. A mutual fund calculator allows you verify the effect of a given variable (i.E., the funding quantity, period of funding, and the price of return) in your overall gains and the investment value. For example, consider that you’re investing with a aim to purchase a domestic. You input the information and note your investment value falls a touch quick of the cost of the house you purpose to purchase. You trade either of the three variables based totally on your preference to peer how you can regulate your funding approach to acquire your goal.
Think of a mutual fund calculator as your music device. The funding quantity, fee of return, and duration of funding are like the bass and treble knobs. You use them to optimize the tune machine’s output. Similarly, a mutual fund calculator allows adjusting the 3 variables that move into it, which permit you to understand what combination of investment, charge of go back, and preserving period allow you to obtain your goals.
You can also calculate mutual fund returns for both SIP and lump sum modes to look how they compare the usage of the mutual fund returns calculator. For instance, making an investment ₹five lakh as a lump sum or investing the same quantity over three years can generate distinct returns. Manually calculating them can consume a whole lot of time, even as mutual fund return calculation with a calculator usually takes less than 30 seconds.

Advantages of Using Online Mutual Fund Calculator

Here are some advantages of using an internet mutual fund calculator:
Easy to use: It is very easy to apply, as you just must enter 3 variables, funding amount, investment period, and investment strategy, to calculate your envisioned go back.
Time-Saving: Manual calculation of SIP or lumpsum go back funding is a busy and time- consuming technique. An online mutual fund calculator simplifies this manner, and you may get your anticipated return in multiple seconds.
Quick Comparisons: It offers you options to calculate go back on each funding methods–SIP or lumpsum. You can compare the estimated return of both strategies and take funding selections hence. Also, you can test your estimated go back by way of changing your investment amount, period, and funding strategy, which enables in evaluating multiple alternatives.
Realistic Goal Setting: It offers you the predicted destiny price of your funding. You can set sensible economic dreams the use of the mutual fund go back calculator. It lets in you to modify funding length and rate of go back to align with their economic aspirations. Free to use: You do no longer ought to pay anything to apply an online mutual fund calculator. It is loose to use, and you could use it any variety of times.

Mutual Fund Returns Calculator - FAQs

Q1. How many mutual fund schemes are there in India?

A. As of FY18, there were 1,013 mutual fund schemes in India, per SEBI statistics.>

Q2. Can there be negative returns on mutual funds?

A. Indeed, there is always the possibility of negative returns with mutual funds. Such scenarios, however, are readily averted with proper financial planning plus expert advice.

Q3. How much to invest in mutual funds per month?

A. A systematic investment plan, or SIP, can be used to invest in a mutual fund program. It is a form of investing in mutual funds in which you invest a certain amount regularly in a mutual fund scheme of your choosing. Using the SIP, you may invest as little as Rs 500 every month in the mutual fund plan of your choosing.

Q4. What are mutual funds and how to invest in them?

A. Mutual funds are actively managed investments in which money is gathered from several participants and used to buy securities. Depending on the form of a mutual fund, it may invest your money in equities, debt, or a combination of equity and fixed income. You may invest in mutual funds immediately thru the AMC both physically and online. You can also buy mutual funds via a mutual fund distributor.

Q5. How to invest Rs 500 in mutual funds?

A. You can invest in mutual fund direct plans online or offline. Before investing in mutual funds, you must first complete your KYC. You can, however, invest in standard mutual fund plans via a mutual fund distributor. Consider investing as little as Rs 500 every installment in a mutual fund's SIP. It is a means of investing in a mutual fund scheme of your preference regularly.