As an investor, your goal should be to beat inflation. With saving instruments like fixed deposits giving seemingly low returns, more people have started investing in mutual funds. Though mutual funds are subject to market risk, you can still get an estimate of your returns with the help of a mutual fund returns calculator.
This online tool considers your investment amount, expected return rate and time period to calculate expected returns. So, if you’re planning to invest in mutual funds, use a calculator to plan your investments in an effective way.
Expected return rate (p.a)
Time Period (Years)
First, it’s important to understand what types of investments can be calculated with a mutual fund
In this investment route, you invest a fixed amount of money in mutual funds at particular time intervals and not in one go. The investment periodicity can be weekly/monthly/quarterly/semi-annually or annually.
As you are investing systematically, the volatility with SIP is lower. So if you are not willing to take risks, this is a great option for you. Also, with the effect of compounding, your periodical investments in SIP will bring you huge returns in the long run.
Lump-sum investments are when you invest a certain amount of money all at once in a particular mutual fund scheme. If you can take risks, one-time investments will offer you better returns in the long term and are more fruitful in fulfilling financial goals.
There are three broad categories of mutual funds:
With Navi, you can start an SIP with just Rs. 500 or make a lump sum investment. Safe and secure investments with 100% paperless KYC process and minimal expense ratio are some of the major benefits of investing with Navi.
To calculate the returns on these investments, the mutual fund maturity calculator uses 3 main factors:
You need to fill in these details in the calculator, and within seconds you will have your estimated result.
The Mutual Fund Returns Calculator uses the following formula-
For SIP: R = A [ (1+i)^n-1 ] * (1+i)/i
For One-time investments: R = A (1 + r/100)^n
So, let’s say that you invest ₹4,000 every month for 2 years. The compounded rate of return is 12% p.a. The estimated return will be ₹108,973= 4000*[(1+0.01) ^24 – 1] * (1+0.01)/0.01).
Here are some of the benefits of using mutual funds returns calculator:
Investments in mutual funds have grown exponentially in the past few years. However, to plan your investments, it’s advised that you use a mutual funds returns calculator. That way, you will have a clear understanding of how much you should invest to achieve your financial goals.
Ans: Mutual funds are volatile as their NAV changes every day. So, profit can never be 100% guaranteed. With changes in economic growth and stock performance, you can lose money in mutual funds though it is rare.
Ans: What one considers high or best return can differ from one person to another. Depending on the amount and duration of investment, returns vary for the same mutual fund scheme. Also, every investor’s expectations and financial goals differ, so the desirable return has to be different too.
Ans: You can check the estimate of the final maturity value of investments or estimate the required investment for your goals. You can also compare returns for different scenarios by tweaking values like duration, investment amount or strategy.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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