Mutual Fund Calculator

Mutual Fund Calculator – Gives You an Estimate of The Returns on Your Invested Capital

Simply investing the penny and not knowing what it will lead to would be like moving in the dark, right? The money does not come easy and so when you put it across the investment vehicles like a mutual fund, you should be aware of the expected returns you are likely to gain on the same.

So what should you do to know the returns? Start using the mutual fund calculator which gives an estimate of the returns one can yield on investing their money in the asset class. Let’s switch on the calculator now.

Types of Mutual Fund Calculator

The calculation of the expected returns is based on the type of mutual fund investment one opts for. Generally, the investments are made by either a Systematic Investment Plan (SIP) or Lump Sum. Let’s calculate the respective returns by understanding the function of both the investment types.

Mutual Fund SIP Calculator

An SIP is a disciplined form of an investment at pre-determined intervals – daily, weekly, fortnightly, monthly, quarterly, half-yearly or annually. The investment can start with an amount as low as ₹500 monthly. The great thing about an SIP is its ability to eliminate the requirement of timing the market.

So when the market hits low, the investments made in an SIP buys more number of units at a lower net asset value (NAV) and fewer units at a higher NAV during the market upswing, thereby lowering the average cost of investment. This aspect, in the MF space, is popularly called as rupee cost averaging.

So if you intend to invest via an SIP and want to know the expected returns, you can do so by entering the following in the calculator-

  • Amount of Investment
  • Assumed Rate of Return
  • Period of Investment

Investing in an equity fund can yield double-digit returns, although not a guarantee. However, such returns can be ensured over the long-term. For long-term goals like marriage and education corpus, the period of investment should be 10 years and above.

Also, the SIP calculator can tell you the amount of investment needed to accomplish your financial goals. All you need is to express the goal in number, enter the assumed return and the period of investment in the calculator, which in turn, will showcase the investment amount you need to make on a periodical basis.

Mutual Fund Lump Sum Return Calculator

A lump sum investment, by name, means investing the whole amount in a mutual fund scheme in one go. Just enter the following in the calculator to get an estimation of the investment value you are going to accumulate over the years you want to keep your money in.

  • Lump Sum Investment
  • Investment Period
  • Rate of Return (Assumed)

Benefits of Mutual Fund Calculator

The benefits can be illustrated in the following points.

Ease of Use – The calculator just requires you to enter a few details such as the investment amount, rate of return (assumed) and the investment period to get an idea of the earnings you are likely to make.


Massive Availability – You can find the calculators online and compute your future, as one would say. Different fund houses have the calculators for you to use. So use the calculator online and ascertain that one number you could achieve over a period of time.

Time-Saving – The calculator does save a lot of your precious time by computing the expected returns on your MF investments with a mere entry of the three variables – amount, the rate of return and investment period.

Accurate Estimates – The algorithms, set in the calculator, gives an accurate estimate of the returns you are likely to make over a period of time.

Homework to Do Before Using Mutual Fund Calculator

Before using the calculator, one needs to do a bit of homework ranging from summing up the financial goals to assessing their risk-appetite. These factors will dictate the decision of choosing a mutual fund scheme. Individuals with a higher risk-taking appetite can so easily opt for equity funds. While those with lesser risk-taking abilities would find at home with debt fund investments.

You should even be clear of the period for which you want to stay invested. Normally those with a longer investment horizon can find equity funds the right stuff to invest in. A short-term investor is most likely to opt for liquid or income funds, a part of debt fund that invests the money in fixed income instruments.

Disclaimer- Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.


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