Check Mutual Fund Return Calculator to Achieve Your Financial Goals!

Struggling to meet the day-to-day needs? The struggle would be even more prominent some 20-30 years down the line if you do not invest now. Life does not get cheaper with time and so, creating a monetary reserve via investments remains the sole option to bail out of such challenging times ahead.

But the irony is that not every investment take you to a position wherein you can take control of the situation. Therefore, you should pick an asset that gallops the value of the investments to great heights over time. The one that’s best suited for the purpose is a mutual fund, which interestingly, is growing in popularity on the back of TV commercial Ads being aired these days.

Mutual funds, by virtue of a carefully designed portfolio of stocks, bonds and other securities, can offer substantially higher returns over the long term. But as many do before investing, you also need to get an idea of the estimated value of your mutual funds before keeping the money in the asset class.

So, you must watch the results of mutual fund return calculator carefully. To your knowledge,
there are several mutual fund calculators that you must get acquainted with. So if you don’t know
the nitty-gritty of these calculators, this article is for you.

Mutual Fund SIP Calculator

A disciplined mode of investing in mutual funds, a systematic investment plan (SIP) enables an
investor to park money in small bunches at any of the frequencies - monthly, quarterly, half-yearly
or annually.

One can kickstart his/her MF journey via an SIP with an amount as low as ₹500 on a monthly basis.
The best part is that an SIP does away with the tendency to time the market by buying more units in
the times of market lows and fewer units when the market moves up the ladder.

You can find the SIP calculator online and get an idea of the extent your money is likely to grow. Want an illustration? Find it below.

Example - Rohit Bansal wants to invest via SIP in a diversified equity fund for 15 years.
So, what would be the value of his investments if he keeps ₹5,000 in an MF scheme via an SIP every
month? The value is likely to grow up to around ₹28 lakhs on a total investment of ₹9 lakhs in 15 years
from now, giving him a wealth gain of around ₹19 lakhs. The growth calculation is made taking into
account an assumed annual return of 13%.

Important for Rohit, though, is to know the amount of monthly investment needed to achieve the
desired corpus. There are goal-related calculators that people like Rohit can use to ascertain the
amount of investment needed, periodically.

One just needs to quote the corpus and the period for which they wish to stay invested. The calculator,
with its algorithm, will display the amount of investment an individual needs to make.

Mutual Fund Lump Sum Return Calculator

There’s a lump sum mode of mutual fund investment as well. Unlike an SIP which is a recurring
investment, the lump sum is a one-time investment. To know how far you can grow your money using
this mode of investment, have a look at the lump sum calculator available online.

You just need to enter the lump sum amount you can invest, an assumed rate of return and the period
for which you want to invest. Remember, the return rate should be in line with the schemes on which
you are investing.

If you are investing in equity funds, you can keep an expected rate of return to 12%-15%, assuming
you are investing for around 10 years or so. However, if you are choosing debt funds for investment,
your return anticipation should be 8%-12% over the long-term.

So, you get to know the importance of calculators in getting an idea of how far your
mutual fund investments can grow over time. Do assess your goals correctly before choosing the
schemes and mode of mutual fund investments to achieve the same.