Mutual Fund Return Calculator

Total Investment

₹500
₹50,00,000

Expected Return Rate

%
1 %
50%

Time Period

Yrs
1 yr
30 yrs

Mutual Funds - An Overview

A mutual fund is a special type of collective corpus that seeks funding from participants with comparable investment goals and is overseen by a qualified fund manager. The fund manager then invests these assets in a certain form of investment instrument in order to maximize returns and reduce risks, depending on the demands of the individual investors.

A mutual fund is, in the simplest words, a sort of financial intermediary created to properly manage the money gathered from various types of investors. By investing their money through a pooled investment vehicle, investors in these funds can profit from the increase in equities or bonds at significantly lower financial transaction expenses.

The Working of A Mutual Fund Returns Calculator

A mutual fund returns calculator refers to a web tool that helps investors in gauging their earnings and the future value of a particular amount invested in mutual funds using a specific investment strategy. A mutual fund calculator can help investors in knowing to which extent they will be able to attain their goals depending on the predicted quantity of investment, rate of return, and time horizon. Investors in mutual funds should preferably take a goal-oriented strategy for their investments.

Mutual Fund Returns Calculation Formula

If you want to calculate mutual fund returns manually, you must be acquainted with this formula. There is no doubt that using a mutual fund returns calculator will make the process easier and quicker. This is particularly true when contrasting the results of mutual fund investments made via the lump sum or SIP methods.

Even if you choose to utilize the Mutual Fund return calculator online, it is still important to comprehend the process that was being used to calculate the returns on mutual funds that one can fetch from their investments. The following is a list of the mutual fund measurement formulas. You'll observe that the formulas differ for mainly two sorts of investments.

Our mutual fund returns are calculated using the below equation:

M = P × ({[1 + i]n – 1} / i) × (1 + i).

Whereas:

M refers to the amount you receive on maturity

P means the amount invested at regular intervals

n is the number of payments that have been made so far

i is the periodic rate of interest

How a mutual fund returns calculator can help investors?

A person can use a mutual fund calculator to find the result of certain elements (such as the investment amount, rate or return, and period) on his general gains and the investment amount. He just needs to feed the data to get expected returns after a certain period. Given your specific preferences, you can modify any one of the given three elements to gauge how your investment strategy can help you reach your investment goal.

Benefits of Mutual Fund Returns Calculator
  • Determine Estimated Maturity Value -
  • Smoother Investment Planning
  • Check and Compare Investment Returns
faq
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Mutual Fund Return Calculator (FAQs)

A mutual fund refers to a type of collective fund created by collecting investor money. After then, this money is invested in a range of securities. Investors divide the revenue received in the form of returns proportionately by the number of units each investor owns. These funds are managed by professionals with in-depth industry knowledge.

Depending on the type of fund you are investing in, the investment amount may vary. The minimum contribution used to be between Rs. 500 and Rs. 5000, but mutual fund companies are now allowing investors to start contributing with just Rs. 100 in an effort to draw in more customers.

Liquidity refers to the ease with which an asset can be converted into cash. An extremely liquid asset is a mutual fund. Regardless matter whether returns are beneficial or not, you can leave a scheme and have your money monetized in a short amount of time.

Equity investments might not be the best choice for you if you are thinking about making a short-term investment. Consider liquid mutual funds, which can provide you with a return of roughly 7% before taxes.

The amount of assets in a mutual fund divided by the number of units represents the fund's NAV (Net Asset Value). The price of a unit is represented by this value. NAV is calculated once each day.

You must pay your fund managers a specific fee in addition to covering administrative and other costs. This fee is taken into account when calculating the expense ratio or management expense ratio.

Section 80C allows for tax deductions of up to Rs. 1.5 lakh for investments in tax-saving plans. These programs are known as Equity Linked Savings Programs (ELSS).

Yes, Indians who are non-residents can invest in mutual funds as well. However, the Foreign Exchange Management Act must be followed by the investor (FEMA).

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