Mutual Fund Return Calculator

Mutual Fund Return Calculator

Mutual Funds and Fixed Deposits are the 2 most popular investment instruments in India with MF investments doing slightly better than fixed deposits in numbers according to a 2023 survey by BankBazaar. With Mutual Funds being one of the most sought-after investment avenues in the country, it is only right that you must be looking for a reliable mutual fund calculator to plan your investment.

Worry not! Investkraft’s diligent tech team has prepared a simple-to-use MF calculator that you can use to plan your investment and retirement strategy today. The mutual fund investment calculator in India can be a useful tool. By inputting details such as the planned amount of investment, time horizon, and expected rate of return, investors can get a better idea of how far they are likely to progress toward their goals.

How Does a Mutual Fund Work?

When someone invests in a mutual fund, they are essentially purchasing units of the fund. The value of each unit is known as the Net Asset Value (NAV). It is calculated by dividing the total value of the fund's assets by the number of units outstanding and is published daily.

There are various ways to invest in mutual funds, including banks, asset management companies, and online platforms. The minimum investment amount required to invest in a mutual fund can vary depending on the type of fund and the fund house.

Now, let us understand how our Mutual Fund return calculator works. We will discuss the formula our tool employs and will explain the same with the help of an example.

Mutual Fund Return Calculator

How to Calculate Mutual Fund Returns?

You can easily calculate the mutual fund returns using Investkraft’s MF return calculator. Follow the instructions given below to find out your expected mutual fund returns:

1. Enter the amount you want to invest in a mutual fund
2. Select an expected return rate interest percentage
3. Enter the time duration for which you wish to stay invested
4. Click on the “Invest Now” tab

How Investing in Mutual Funds is Beneficial for the Investors?

• Managed by Professionals: Mutual funds are managed by experienced professionals who have the expertise to actively buy, sell, and monitor investments. A fund manager continuously rebalances the portfolio to meet the scheme’s objectives, making portfolio management by professional fund managers one of the most important advantages of a mutual fund.
• Diverse Investments: Investing in mutual funds helps in diversifying your portfolio and spread the risk across various asset categories such as equity, debt, and gold. This means that if one investment in the portfolio decreases in value, other investments may not be impacted and may even increase in value, thus reducing the overall risk.
• Convenient and Affordable Schemes: Mutual funds have more affordable minimum initial investments than purchasing all individual securities held by a single mutual fund.
• Easily Redeemable: Open-ended mutual fund schemes can be easily redeemed on any business day and the redemption amount is usually credited to your bank account within 1-4 days, depending on the type of scheme. Close-ended mutual fund schemes can only be redeemed on maturity and ELSS has a 3-year lock-in period.
• Regulated by SEBI: Mutual Funds in India are regulated by SEBI under SEBI (Mutual Funds) Regulations, 1996, which includes strict rules to protect investors, ensure transparency, mitigate risks, and maintain fair valuation principles.
• Tax Benefits: ELSS investments up to ₹1,50,000 qualify for tax benefit under section 80C. Long-term mutual fund investments are tax-efficient.