MUTUAL FUND CALCULATOR

Mutual Fund Calculator: Introduction

The Mutual Fund Calculator will give you the investment value at maturity by calculating fund returns according to your investment horizon. You can adjust the variables of the calculator such as

  • SIP or lump sum mode of payment,
  • Your desired amount of investment,
  • Frequency of SIP,
  • The expected rate of returns, and
  • The duration of SIP.
Mutual Fund Calculator: Practical Illustrations

Example-1: Investment through SIP

Let’s say you want to invest Rs. 10,000 per month for 10 years and you are looking for a profitable investment vehicle.

Now, have a look at 2 major options of monthly investment: Mutual Fund SIP and FDs

Recurring Deposit (RD) will give you an average return of 7% (interest rate differs in banks) for 10 years duration.

After 10 years, your initial investment of Rs.10,000 per month in RD will build up your investment corpus to be Rs. 17,40,945.

Whereas with the same initial investment, Mutual Fund will give you the average return of 12%.

You can put all these values into the calculator. Your total investment amount after 10 years will be Rs. 12,00,000!

And, you will get the future value of the investment to be Rs.23,23,390

Example-2: Lumpsum Investment

If you choose to invest the one-time amount in Mutual Fund, it is possible through the Lump-sum option of payment. Let’s say you invest Rs. 3,50,000 as a lump-sum investment in a Mutual Fund for the duration of 5 years.
Your corpus after 5 years will be Rs.6,35,843 with an average return rate of 12%.

It’s your choice to invest in Mutual Funds through SIP or Lumpsum investment, depending on your financial goal.

We recommend you to start with SIP investment, instead of investing any fixed amount in Lumpsum. You should read this detailed article on SIP vs Lumpsum.

In the next example, we will discuss on how much you need to invest per month through SIP, to achieve your financial goal.

Example 3: Achieving your Financial goal

Let’s say you want to accumulate a corpus of Rs.7 crores for your daughter’s wedding. And, you still have 15 years with you to achieve this financial goal.

Take a 12% average return in your investment.

If you invest Rs. 1 Lacs per month, you will get the future value of your investment to be over Rs.5 crores. And, if you increase your SIP to 1.5 Lacs per month, you will find the future value of your investment to be way beyond Rs.7.5 crores.

Therefore, you have to invest Rs. 1.5 Lacs per month for 15 years to achieve this major financial goal.

So, decide on your financial goals and utilize this calculator for calculating your Mutual Fund returns.

For greater details on Mutual Funds, you should read this Comprehensive Guide on Mutual Fund Investment. Here you will learn everything you need to know about Mutual Funds, such as expected returns from Mutual Funds or how to choose a good Mutual Fund and much more.

To take our advice to create your customized Investment advice, you can register for our FREE complementary consultation call by clicking the link below:

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