Mutual Fund Returns Calculator
What is a mutual fund?
Before you know about the mutual fund returns calculator, you must know about mutual funds. A mutual fund is well known for its professionally managed investment scheme. It works as a vehicle of investment in which many investors pool their money and in return after a limited period they get their capital. Mutual funds are run by an asset management company that serves the role of mediator for investors.
What is a mutual fund returns calculator?
The mutual fund returns calculator is a tool that helps you to calculate the returns from mutual fund investment. With the help of this calculator, you can calculate the maturity value of your invested money very easily. You can calculate the maturity value before you invest the money in a mutual fund. By entering the amount like a SIP amount, duration of the SIP, and the frequency of SIP, you can calculate the maturity amount for an estimated rate of return on the investment. A mutual fund calculator has a formula box in which you have to enter all the details. In this calculator, there are many options given by which you can calculate the exact amount of maturity value, you need to select the amount of investment, rate of return, and the duration of investment then you will get the resultant amount. This calculator is the easiest way to calculate the maturity value of your invested amount in a few seconds. If you are a beginner and planning to invest your money in mutual funds then you can use a mutual funds return calculator prior to investing. It will give you the exact amount of maturity which will help you in choosing the scheme available for mutual fund investment. You can choose your scheme after calculation and also as per your financial goals.
How are mutual fund returns calculated?
The mutual fund return calculator uses the concept of future value which gives you the accurate maturity value. It is basically a financial tool that helps you to calculate maturity value only in two ways: first when you are investing your money one time and second when you are investing your money monthly. When you are investing your money one time that is called a one-time investment. You can understand this investment with an example like if you are investing a number of rupees one lakh in a mutual fund scheme for 10 years and estimated the rate of return on the investment at 8% per annum. Then after calculation of the mutual fund investment, you will get around 2.15 lakh rupees after 10 years at an estimated return of 8%. A mutual fund return calculator will give you the exact amount of maturity money. The second process is SIP investment which means a systematic investment plan for the SIP route. If you are investing 1000 rupees a month in a mutual fund then you will get around 1.84 lakh rupees after 10 years at an estimated rate of return of 8%. Both one-time investments and monthly investments have different formulas to calculate maturity money. It is totally up to you which scheme to choose as a resultant amount is different for both plans.
Benefits to using Mutual fund returns calculator
As an investor, the mutual fund returns calculator is a boon for you which makes your life easier. There are so many advantages to this calculator. This calculator will give you the accurate value of the amount you are getting after the maturity of the fund investment. This saves your time as you can calculate anywhere within seconds. You do not need to give your valuable time or a lot of time in calculation. You can use this online which makes it the most convenient source by which you can plan your financial goals. You can plan your budget for future expenses. As mutual funds have two different schemes you can get the idea of maturity value as you can calculate it before you are choosing any scheme. It always provides you a full estimated amount for one year, 3 years, and 5-year or you can say any investment period. To use this calculator you do not need any assistance or expertise. It is so simple to use as it has been designed for beginners also.
Frequently asked questions regarding mutual fund returns calculator
What are the benefits of a mutual fund returns calculator?
With the help of a mutual fund returns calculator, you can calculate the maturity value of your mutual fund investment in seconds. You can plan your accurate financial goals from the value of the calculated resultant. You can calculate anywhere to get an accurate maturity value with your comfort.Can we invest online also in mutual funds?
Yes of course you can invest online in mutual funds. You can directly invest with the mutual fund through a direct plan. You need to visit the website then fill in your relevant details and complete the KYC procedure. Then you can choose your plan as per your need.How to invest in mutual funds in a month?
First, choose the systematic investment plan where you invest in a fixed amount regularly which is of your comfort. You have to fix that amount per month of your choice. You can calculate the resultant from the mutual fund returns calculator then you can decide about the scheme which you should choose.Name the mutual fund scheme available in India?
There are many schemes available in India but for a better result, you have to choose your scheme plan wisely. According to the data about mutual funds, there are almost 1,013 mutual fund schemes in India. You may first make sure about the investment objective and risk tolerance if you are a beginner. You can select your scheme online and offline at your convenience. You can invest in a regular plan or a direct plan of a mutual fund just by visiting the website of the fund house.
Are there only positive returns in mutual funds?
No, you are not always going to have only positive returns in mutual funds. There is always a risk of negative returns especially when you are a beginner. As a beginner, it would be better if you have some financial planning and expert assistance then you can avoid such a situation quite easily.
Conclusions
From the above article, you can have all information about the mutual fund returns calculator and also a little about mutual fund investment. This article has given an overview of how you can plan your financial goals as an investor. There is a little bit of risk in investing money in a mutual fund because there is no possibility that you can only get benefits after investment but you can also get negative results too. This calculator will surely help you to get the exact resultant amount so that you can decide carefully without taking any risk. The estimated resultant amount will help you in avoiding risk and you can get a better result. As a beginner, you can start investing your money from a very minimum amount of 100 rupees per instalment in a mutual fund through SIP.