Mutual Fund Calculator
Mutual Fund Calculator
Want to know how your mutual fund investments can grow over time? A mutual fund calculator makes it easy to estimate your returns and plan your financial future with a few simple clicks.
What is a Mutual Fund?
A Mutual Fund is a professionally managed investment vehicle run by an Asset Management Company (AMC). The AMC collects funds from investors and invests them across equity, bonds, money market instruments, and other assets on their behalf, charging a fee for these services. Investors receive units in the form of Net Asset Value (NAV) based on their investment amount, and the gains or losses from the fund are shared proportionally among all investors.
What Is Mutual Fund Calculator?
Mutual fund Returns calculator is an online tool that helps you to calculate the returns from a mutual fund investment. By inputting investment amount, interest rate, and tenure, the mutual fund calculator forecasts potential returns, enabling you to plan finances and reach financial goals.Whether the investment is a lump sum or an SIP route, the returns can be easily calculated using a mutual fund calculator.
How Can Mutual Fund Calculator Help You?
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.
Mutual Fund Calculator Formula & Example
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 Lumpsum 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 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.
- Enter the investment amount, rate of return and the duration of the investment.
- The ClearTax mutual fund calculator will display the value of the investment at maturity.
SIP investment:
- Choose the SIP option in the ClearTax Mutual Fund Calculator.
- Add the investment amount, duration, and expected rate of return.
- ClearTax Mutual Fund Calculator will tell you how much you are going to have at maturity of investment.
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.
In short, a mutual fund calculator is a smart, time-saving tool that helps you plan and visualize your investment journey. It empowers people to make confident, well-informed decisions tailored to suit their financial goals.
Frequently Asked Questions
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Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
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