Mutual Fund Returns Calculator
Mutual funds are one of the most popular investment options in India. A mutual fund (MF) is an investment strategy that is professionally managed. It is administered by an asset management company (AMC), which acts as a middleman between retail investors and the AMC. In a MF, the investor is known as a unitholder.
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What is a mutual fund calculator?
A mutual fund calculator is a simple tool that allows you to estimate the maturity value of a mutual fund investment before you invest any money into it. The tool helps you determine the returns of your planned investment in the MF. If you invest in a lump sum or through a SIP, you can determine the maturity value of your investment.
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How can a Mutual Fund Calculator help you?
Even though mutual fund investments are exposed to market risks, their returns may be estimated quite reliably. A mutual fund calculator is a beneficial financial tool that helps investors understand how much money they can make by investing in mutual funds.
To calculate the predicted returns, use ICI’s free mutual fund return calculator.
- It will provide you with a detailed estimate for investment periods of one year, three years, and five years.
- It allows you to plan for the future based on the expected returns.
Total Investment
₹
Years
Expected Return Rate
%
Total Investment
₹1,00,000.00
Est. Returns
₹76,234.00
Maturity Value
₹1,76,234.00
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How to use the MF Calculator?
Based on the nature of your investment, use the ICI’s Mutual Fund Calculator. To use this calculator, you don’t need to be an expert on the subject. For investing in a lump sum you may follow the steps as shown under:
- You must provide three key points of information:
- The amount of your total investment
- The projected return on investment
- The period of investment.
- Enter the amount you’ve invested, the estimated rate of return, and the number of years you’ll be investing.
- Within seconds, the appreciated value of your investment at the conclusion of the set duration will be reflected.
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FAQs
Using this calculator has a number of advantages that make investing more effortless.
» It calculates the returns on your mutual fund investments with a high degree of accuracy.
» It saves time since it eliminates the need for manual calculations.
» You can use it from anywhere because it’s an internet application, which makes financial planning more convenient.
When it comes to mutual funds, there is always the potential of incurring losses. However, with proper financial planning and competent assistance, such situations can be avoided.
One-Time Investment:
Consider you invested Rs 1 lakh in a ten-year mutual fund scheme. Your investment yields a 7% annual rate of return, according to your calculations. To calculate the future worth of investment, apply the formula below:
Future Value = Present Value ( 1 + r / 100 ) ^ n
Present Value (PV) = Rs 1,00,000
r = Estimated rate of return of 7%
= 7/100 = 0.07
n = Period of the investment
= 10 years.
Determine the mutual fund investment’s Future Value (FV) at maturity or after ten years.
FV = 1,00,000 ( 1 + 7 / 100 ) ^ 10
FV = ₹1,96,715.0
Therefore, at a projected return of 7%, the future value of the mutual fund investment after ten years is ₹1,96,715.0.
SIP investment:
A mutual fund calculator can also be used to figure out how much a SIP investment will be worth when it reaches maturity.
Formula:
FV = P [ ( 1 + i ) ^ n – 1 ] * ( 1 + i ) / i
FV = Future value or the amount you get at maturity.
P = Amount you invest through SIP
i = Compounded rate of return
n = Investment duration in months
r = Expected rate of return
Assume, you may invest Rs 1,000 each month in a mutual fund scheme using a SIP. The investment will last ten years and is predicted to earn 7% annually.
You have i = r/100/12 = 7/100/12 = 0.005833.
(Divide the annual rate of return by 12 to get the monthly number.) In addition, you have n = 10 years or 120 months.
FV = 1,000 [ ( 1 + 0.005833 ) ^ 120 – 1 ] * ( 1 + 0.005833 ) / 0.005833 ]
FV = ₹96,715.0
So, at a 7% annual rate of return, a SIP investment of Rs 1,000 per month for ten years is worth ₹96,715.0.
If you’re unfamiliar with mutual funds, you’ll need to figure out which one is best for you based on your financial goals and risk tolerance. Depending on your preferences, you can invest in mutual funds online or offline.
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