What is a Mutual Fund?
A Mutual Fund is a professionally managed investment scheme run by an asset management company (AMC). The AMC collects the money from investors and invest it in Equity, Bonds, money market instruments, and other types of investment option on their behalf. The AMC charge a fees for these services. Investors get specific number of NAV (units) proportionate to the invested amount in the fund. The loss, income/ gain of this mutual fund scheme share by the each investor according to their investment proportion.
What is an Mutual Fund Calculator?
Mutual fund Returns calculator is an online tool that helps you to calculate the returns from a mutual fund investment. Whether the investment is a lump sum or an SIP route, the returns can be easily calculated using a mutual fund calculator.
By inputting investment amount, interest rate, and tenure, Mutual Fund calculator forecasts potential returns, enabling you to plan finances and reach financial goals. For SIP investments, details required include SIP amount, investment duration, SIP frequency, and estimated rate of return. For lump sum investments, inputs needed are total investment amount, expected rate of return, and investment duration, providing a clear picture of the final maturity amount.
How does a Mutual Fund Total Return Calculator Work?
The Mutual Fund Return Calculator uses the future value formula to provide accurate estimate of the maturity value of your investment. Here are calculation examples for both the investment strategies.
One-Time lump sum Investment Calculation | SIP Investment Calculation |
| Example: You have invested a lump-sum amount of Rs 1 lakh in a mutual fund scheme for 10 years. You have estimated the rate of return on the investment at 8% per annum. You can calculate the future value of the investment using the formula: | Example: You invest Rs 1,000 a month in a mutual fund scheme using the systematic investment plan or SIP route. The investment is for 10 years, with an estimated rate of return of 8% per year. |
Future Value (FV) = Present Value (1 + r/100)^n
| Future Value =P[(1+i)^n-1]*(1+i)/i
|
You have to calculate the Future Value (FV) of the mutual fund investment at maturity or after 10 years. FV = 1,00,000 (1+8/100)^10 FV = Rs 2,15,892.5. | You have i = r/100/12 = 8/100/12 = 0.006667. (You must convert the rate of return to the monthly figure through dividing by 12). You also have n = 10 years or 120 months. FV = 1,000 [(1+0.006667)^120 – 1] * (1+ 0.006667)/0.006667 FV = Rs 1,84,170. |
How can Online Mutual Fund Calculator Help you?
Before you invest in a mutual fund scheme, it is a good practice to assess your return on investment. For doing so, a mutual fund calculator is the best tool as it is simple and easy to operate. Even if you are using it for the first time, you will not encounter any troubles. Check out how it helps you.
- A MF calculator will provide you with the total estimated return for 1, 3 and 5-year investment horizons.
- It assists you in planning your future financial strategy based on the estimated returns.
How to use ClearTax Mutual Fund Calculator?
You can effortlessly use the ClearTax Mutual Fund Calculator based on the nature of your investment.
Lump-Sum investment:
- Select the One-Time Investment (Lump Sum) option in the ClearTax Mutual Fund Calculator.
- Provide the details of amount of investment, expected rate of return and the duration of the investment.
- CearTax Mutual Fund Calculator will show you the value of the investment at maturity with a breakup of invested amount and earned interest.
SIP investment:
- Choose the SIP option in the ClearTax Mutual Fund Calculator.
- Now fill the amount of investment, frequency of the SIP, expected rate of return and the duration of the SIP.
- ClearTax Mutual Fund Calculator will tell you how much you are going to have at maturity of investment.
Advantages of Using a Mutual Fund Return Calculator
Using a mutual fund return calculator has the following benefits:
- User-Friendly Interface: The tool is extremely user-friendly, requiring you to input only three key details: the amount of investment, the duration of the investment, and your preferred investment strategy. This simplicity enables you to swiftly determine your potential returns.
- Cost-Free Access: Access to the online mutual fund calculator is completely free. There are no charges for its use, allowing you unlimited access to evaluate and plan your investments.
- Efficiency: Calculating returns on investments manually, whether it’s through systematic investment plans (SIPs) or one-time lumpsum payments, can be arduous and time-killing. Utilizing an online mutual funds calculator streamlines this task, delivering your projected returns almost instantly.
- Enhanced Comparison Capabilities: This tool offers the capability to evaluate returns from different investment methods—either SIPs or lumpsum investments. By entering various amounts, durations, and strategies, you can assess multiple investment scenarios quickly, aiding in informed decision-making.
- Goal Setting Assistance: It helps in your financial planning by showing the the future value of your investments. It also allows for adjustments in the investment period and expected rate of return, helping tailor your investment plan to meet your financial goals.
How to Invest in Mutual Funds?
You can invest in mutual funds through different routes.
- Direct Plans: You can approach the asset management company (AMC) and invest in the direct plan of your choice. These plans have a low expense ratio because they don’t charge a distributor commission. Hence, you can earn a better rate of return over the long-term.
- MF Distributor: You can contact a registered mutual fund distributor who will help you out with the requisite documentation. You will be investing in a regular plan which will charge a distributor’s commission.
- Online: There are several third-party portals available online. You can visit any of them and invest in a variety of mutual funds by paying a nominal fee.
| Other Calculators | ||
| PPF Calculator | RD Calculator | FD Calculator |
| NPS Calculator | SIP Calculator | SCSS Calculator |
| CAGR Calculator | ROI Calculator | EMI Calculator |
| Lumpsum Calculator | Future Value Calculator | SWP Calculator |
| Kisan Vikas Patr Calculator | Retirement Planning Calculator | Compound Interest Calculator |
