Mutual Fund Return Calculator

Total Investment


Expected Return Rate

1 %

Time Period

1 yr
30 yrs

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

Lumpsum Mutual Fund Return Calculator

Future Value = Present Value (1 + r/100)^n

r = Estimated rate of return

n = Duration of the investment

Let's say you're considering investing INR10,000 in a mutual fund that historically has provided an average annual return of 7%. You want to calculate what the future value of this investment would be in 5 years.

Using the formula:

Future Value = Present Value * (1 + r/100)^n


  • Present Value (PV) = 10,000
  • r = 7% or 0.07
  • n = 5 years

Plugging in the values:

Future Value = 10,000 * (1 + 0.07)^5

Future Value = 10,000 * (1.07)^5

Future Value ≈ 10,000 * 1.402551 = 14,025.51

SIP Mutual Fund Return Calculator

FV = P [(1+i)^n-1]*(1+i)/i


FV = Future Value

P = Principal amount you invest through SIP

i = Compounded rate of return

n = Investment duration in months

r = Expected rate of return

Suppose Rohit decides to invest INR 500 every month in a mutual fund SIP for his retirement. He expects an annual compounded rate of return of 8%, which translates to a monthly rate of 0.08/12 = 0.00667. He plans to invest for 20 years, which is 240 months.

Using the given formula:

FV = P [(1+i)^n-1]*(1+i)/i


  • FV = Future Value
  • P = 500 (Principal amount invested every month)
  • i = 0.00667 (Compounded rate of return per month)
  • n = 240 (Investment duration in months)

Plugging in the values:

FV = 500 [((1+0.00667)^240 - 1)*(1+0.00667)/0.00667]


FV ≈ 500 [((1.00667)^240 - 1)*(1.00667)/0.00667]

FV ≈ 500 [(4.3175)*(1.00667)/0.00667]

FV ≈ 500 * 647.0034

FV ≈ INR 323,501.70

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.

FAQs on Mutual Funds

A: The best type of mutual fund depends on your financial objectives and risk tolerance. Depending on these factors, you can choose from ETFs, ELSS funds, debt funds or equity funds.

A: In simple words, mutual funds mean a large pool of money taken from investors with common objectives that professional fund managers manage.

A: A new fund offer (NFO) is the first-time sale of shares by an investment company to investors.

A: Out of all the types of mutual funds, equity funds usually have the potential for the best returns in the long run.

A: Money Market Funds are a type of debt fund that lends money to companies for a duration of up to one year. These funds are designed to enable the fund manager to generate higher returns while managing risk by adjusting the lending duration. Typically, a longer lending period results in higher returns.

A: XIRR is a method used to calculate returns on investments with multiple transactions at different times.

A: The Securities and Exchange Board of India, also known as SEBI, regulates the mutual funds industry in India.

A: Yes, minors can legally start investing in mutual funds irrespective of their age. However, to do so, their parents or legal guardians must assist them.

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