Mutual Funds Calculator 2024

A mutual fund is an investment vehicle that pools money from various investors and invests in equity, debt, and hybrid investments depending on the risk appetite of the user. What separates it from direct trading is that it is managed by professional fund manager, who are experts in diversifying the investment into different classes so that your investment fetches optimal returns. Investors in a mutual fund hold a part of share in the fund.

What is a Mutual Fund Calculator?

A Mutual Fund Calculator is an online tool that helps investors calculate the returns of their investment after a specific tenure as mentioned by the user. It takes into account various factors like investment value, tenure, rate of interest, and power of compounding effect to provide an estimated return value to the customer

What is a Mutual Fund Calculator?

A Mutual Fund Calculator is an online tool that helps investors estimate the future value of their investments in mutual funds. It takes into account factors such as the investment amount, duration, expected rate of return, and compounding frequency to provide an estimate of the returns an investor can expect.

How Does a Mutual Fund Work?

Mutual funds work by pooling funds from various investors to form a large amount that is invested in diversified portfolio. Fund Managers actively manage the funds by buying and selling securities to achieve the fund’s objectives.

Benefits of Mutual Funds

• Diversification: Mutual funds reduce risk by spreading the investment across various categories
• Professional Management: Experienced fund managers take decisions on where your investment goes
• Liquidity: They can be easily liquidated
• Affordability: You can even start with a small amount which can help you build a good corpus

How does a Mutual Fund Calculator works?

The Mutual Fund Calculator works on the following formula:

Return (%) = [(Current NAV – Initial NAV) / Initial NAV] * 100

For example,

If you invest in a mutual fund which has a NAV value of 50 and has grown to 60, the return is calculated as follows

Return (%) = [(₹60 - ₹50) / ₹50] * 100 = 20%

Formula for calculating lump sum returns

FV = P(1+r)^n 

• FV = Future Value
•  PV = Present Value
• R= Rate of interest
• n = Number of years 

Suppose you are investing a lump sum amount of Rs. 10 lakhs for a tenure of 5 years at an expected return rate of 12%, then your returns are as follows

Invested amount - ₹10,00,000

Est. returns – ₹7,62,342

Future value – ₹17,62,342

Formula for Calculating SIP return’s

How to Use a Mutual Fund Calculator?

1. Enter the investment amount: Enter the amount you are planning to invest
2. Choose the Tenure: Specify the tenure for which you are planning to get invested
3. Select the Interest rate: Enter the expected return
4. Calculate: The calculator will provide an estimate of the maturity value and total returns.

FAQs for Mutual Fund Calculator

1. What is a Mutual Fund Calculator?

A Mutual Fund Calculator is a tool that helps to calculate the future value of your mutual fund investments

2. How accurate is the Mutual Fund Calculator?

The calculator provides an approximate return value; the actual returns may differ based on market conditions

3. Can I use a Mutual Fund Calculator for SIP investments?

Yes, you can use it if you select SIP as the mode of investment

4. What factors influence the accuracy of the Mutual Fund Calculator?

The rate of interest and the investment duration plays a heavy role

5. Is there any cost associated with using a Mutual Fund Calculator?

No, most Mutual Fund Calculators are available online for free.