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Mutual Fund Calculator

Mutual fund investment is not complicated and can be learned quickly by anyone who wants to grow their investment and participate in market-linked profits. Mutual fund calculator is considered the best guiding tool as it has a top-notch advanced algorithm, which gives the investor accurate results on returns expected on the investment in the particular type of mutual fund and provides other details relating to the investment. The mutual fund calculator can be used by anyone for free from the convenience of their home anytime. Mutual fund calculator helps in making mutual fund investment decision easier as per the financial goal of the investor.

Returns Calculator in Mutual Funds

Are your mutual funds giving you good returns? The calculator for returns provides one with an answer by simply calculating returns of funds for the chosen period. There is also a display of returns and table of performance position of the fund compared with competing schemes over various time zones.

Absolute or Point-to-Point Return

This technique helps to assess simple returns on the initial investment. For calculating this, investors need to set the initial and last Net Asset Value of the specific SIP chart. For doing a calculation for the point-to-point return, the holding period plays almost no role. This means, that if you start at a NAV of, Rs. 40 and after a period of 36 months, it becomes Rs. 80, then absolute return would stand at 100 %.

For returns calculation using this method, you need to apply this formula:

Absolute return comes from (present NAV – initial NAV) / initial NAV x 100.

You may apply this formula upon an excel sheet. Next, you may start the calculations. One utilises this formula for the calculation on the returns.

CAGR (Compounded Annual Growth Rate)

When period of your SIP investment falls at more than 12 months, the CAGR is a simple way of return calculation. This mostly means a figure that uncovers the method in which investments should have grown as steady returns. However, in reality, expected returns are never annually equal. This is why CAGR is utilised for representing the mean yearly rate of growth which smoothens the volatility in the returns along a certain time frame.

When you are using CAGR for returns calculation on your SIP investment, then you will utilise this formula:

((Ending Value / Beginning Value) ^ (1 / number of years)) – 1 * 100

Simple Annualized Return

Certain people look forward to see their overall return go into a yearly cycle, and get returns when holding is less than 12 months. This method is better known as the EAY, or the effective annualized yield. Utilise the following formula, if you wish to annualize the

SIP returns: Absolute Rate of Return plus 1 ^ 365 divided by number of days minus 1. You may also set this formula into an excel sheet for returns calculation.

Mutual Fund Returns

If for instance, the current value of the market stands at INR 4,00,000 and the original investment stood at INR 2,50,000, the absolute return will be as follows- [(4, 00,000-2, 50,000)/2, 50,000] = 60%.

  • Annualised Return: As implied, the annualised return is a measure of the amount of growth in your investment value on a yearly basis. For example, if you made an investment of INR 1 lakh in a mutual fund policy, then in a 3-year span, the investment will grow to INR 1.4 lakh. In this situation, the absolute return stands at 40%, while the annual return stands at 11.9% due to the compound effect.

  • Total Return: This is the actual returns gathered from investment. This is inclusive of dividends and capital gains. For example, you made an investment of INR 1 lakh in a mutual fund scheme, and the NAV stood at INR 20. Considering you purchased mutual funds worth INR 1 lakh and the NAV stands at INR 20, you have purchased 5,000 units. After 12 months have passed, the NAV of the mutual fund rises to INR 22, taking the value of the units will stand at INR1.1 lakh (5,000 units x INR 22 per unit), implying that your capital gains will stand at INR10,000. If the scheme declared dividends of INR 2 /unit over a 12-month period, then the overall dividend for the investor will stand at INR 10,000 (5,000 units x INR 2 for every unit). This means the overall returns gathered will stand at INR 10,000 + INR 10,000. This is dividend + capital gains equalling to INR 20,000. This sets your return at 20%.

  • Trailing Return: This is the yearly return over the course of a trailing period that finishes today. For example, when the NAV of a mutual fund scheme today stands at INR 100, and it was previously INR 60 36 months ago. The formula for the calculation of trailing return in the Microsoft Excel sheet is (Present NAV / NAV at the start of trailing period) ^ (1 divided by trailing period minus 1. This means your 36-month trailing return will stand at 18.6%. If the scheme’s NAV stood at INR 50 five years ago, then the five-year trailing return will stand at 14.9%.

  • Point to Point Return: This is the annualised return logged between two points. What you need to calculate is the returns from one point to another point. The points being the date of initiation and closing of the mutual fund schemes.

  • Annual Return: As per the term, the annual return is the return accrued from a scheme between the start of January and the end of December in a given year. For example, when a scheme’s NAV in the start of January is INR 100 and on end of December is INR 110, the annual return stands at 10%.

How to Calculate Debt Mutual Fund Returns

The Mutual Fund Calculator is a tool for calculating returns on your lump-sum MF investment. The tool is a very convenient option as it gives investors power by doing complex calculation in a short time duration It delivers an accurate result on the future value of present investments.

Input Required:

  1. Total Amount
  2. Years
  3. Rate of return expected per annum Returns on mutual funds can be calculated using two routes. This would be either in absolute terms or in compound annual growth rate.

How to Calculate Equity Mutual Fund Returns

In case of equity fund investment, at least 60% investment of a scheme’s assets go toward equity shares of companies across various proportions as per mandate of investment. This could be a large capital fund or a market capitalization mash. Also, the style of investment could be value or growth-oriented.

After a major allocation of equity shares, the remainder is invested in debt and money markets. This is to address redemption requests from the investors. The fund manager keeps on buying or selling particular stocks to gather full advantage of fluctuating market movements.

When you plan on an INR 5000 / month investment for 1 year, with expected 15% ROR, the calculator will calculate maturity value of the SIP. The total investment will stand at INR 60,000. Value at maturity will stand at INR 65,106. The calculator functions as per the input given by user. This means that it should be considered as an estimate and not absolute value. Variables such as inflation also determine the maturity value of the SIP.

Lumpsum Calculator

The lumpsum calculator calculates the maturity amount for a present lump sum investment, or one-time investment, after a given number of years. One is required to input the amount that has to be invested. Investment horizon with time frame and the rate of return will help find the amount at maturity and the investment’s earnings.

Benefits of Mutual Fund Calculator

  • Mutual fund calculator is a free tool which is available for use to anyone who is looking to invest in mutual funds.
  • It serves as a free guide for an investor when making a decision on mutual fund investment.
  • Mutual fund calculator has an advanced algorithm which provides you with accurate results.
  • It is very easy to use mutual fund calculator and you don’t need any advanced knowledge of investment
  • Using mutual fund calculator will enhance your knowledge and will encourage you to know more about the mutual funds and how to grow your investment in a smart manner.

Why Invest in Mutual Funds?

Ease of investment and monitoring procedure

The internet technology has made investing in mutual funds a piece of cake. You can purchase, manage and sell mutual funds online. All you have to do is just log in to the mutual fund house website and follow the simple steps to purchase mutual funds. The online platform also helps you to manage your investment by constantly getting updates on the performance of the mutual funds on a day-to-day basis.

Professional management

One of the greatest advantages of the mutual fund investment is that your mutual fund is managed by professional fund managers whose day to day job is to do a market analysis. Fund managers also have a team of professional who minutely research on the companies and sectors before deciding on buying and selling a particular stock or securities of a company. The professional management of the mutual fund makes it attractive and increases chances of getting high returns.

Low Cost

Mutual funds have fees associated with them relating to the asset management cost. Although the asset management cost would have been expensive if it was the money of one person but mutual funds have money of many investors clubbed together. This way the asset management cost also gets divided amongst the investors making it affordable to each of the individual investors.

3 years lock-in period

Most of the traditional investments come with a long duration of lock-in periods like PPF, fixed deposits, etc. On the other hand, mutual funds generally do not come with this compulsion of long lock-in periods. In mutual funds, you have ease of redeeming your investment as per your needs. The only type of mutual funds that have a compulsory lock-in period is ELSS or tax saving mutual funds. They have a short lock-in period of only 3 years. Although industry experts are of the opinion that you should keep your money in the mutual funds as per your short-term or long-term objectives, historical data has proved that the longer you keep your money invested, the better returns you can achieve from your investment.

Portfolio diversification

Mutual funds give you an added advantage of diversifying your investment into many different types of investment. Say, if one stock does not do well then it can be averaged out by the performances of other stocks in the mutual fund. This way you can spread your risk and achieve better returns on your investment.

Liquidity and Tax Benefits

Mutual funds other than ELSS or tax saving mutual funds normally don't have a lock-in period. Mutual funds give you the freedom of taking your investment out anytime as per your needs and requirements. Depending on your investment you can choose to put your money in appropriate mutual funds. For very high liquidity you can invest your money in money market mutual funds where you can even keep your investment just for a single day and take out. ELSS or tax saving mutual funds come under section 80C of the Income Tax Act, 1961 which offer tax benefits of up to INR 1,50,000 in a financial year on their investment but come with a lock-in period of 3 years.

Financial Goal-Oriented Funds

Mutual funds are systematically categorised into different types as per the financial goal. It becomes easy for the investors to invest in a mutual fund as per their choice. Growth funds are meant for investors who don’t mind keeping their money invested for a long term to achieve high returns on their investment. Income funds are for investors who are looking for stable income and less risk on their investment. Balanced funds offer a mixture of both growth funds and income funds. ELSS or tax saving mutual funds help in saving tax of the investors. All these are the examples of mutual funds which are financially goal oriented. The investment done in the mutual funds is as per the goal of the mutual fund.

High Return Potential

Are we all not looking for high returns on our investments? Mutual funds offer the platform to strategically invest your money in the variety of market-linked financial instruments which have outperformed for many years. Equity Mutual funds have given better returns than bank deposits with returns as much as 11% to 18% over the last decade. Investing in equity stock through mutual funds is relatively safe as you can diversify your risks and enjoy healthy returns on your investment.

Regulation and Transparency

Mutual fund houses come under the regulation of SEBI (Securities Exchange Board of India). It is mandatory by law for the mutual fund houses to make necessary disclosures. The NAV (Net Asset Value) of the mutual fund is updated daily and is available to view for all. This makes the performance of the mutual fund very transparent, making it easy for the investor to track its progress and get daily updates on its performance.

Mutual fund Performance

Mutual funds are amazing performers that help well with wealth creation. The asset management companies bring many people together and assists them in their investment of their funds upon a large range of securities such as bonds, stocks, etc. This is why more and more people with varying knowledge of finance are willing to invest money in mutual funds.

How Long to Invest in Mutual Funds?

All investments should come from some financial plan. These plans mostly show the duration it would take for financial objectives to be realised.

For instance, an investor earns INR 50 lakhs in a real estate deal. The individual is seeking a safe avenue to invest. The ideal scheme in this situation will be a Liquid Fund, designed to deliver liquidity through high probability under capital protection. The investor may redeem whenever he or she wants. Thus, the decision on the investments time duration varies as per the investment objectives. Investors need timely review on investments and progress, with consultants.

Compare Mutual Funds:

Fund Name1-Year Return3-Year Returns5-Year Returns
Tata Digital India Fund40.67--
ICICI Prudential Tech Fund38.0611.5816.10
SBI Tech Opportunities Fund30.869.9812.63
Aditya Birla Sun Life Digital India Fund30.7812.7414.52
Franklin India Technology Fund25.8210.0511.16
ICICI Prudential US Blue-chip Equity Fund23.4815.8512.65
Reliance US Equity Opportunity Fund21.8116.51-
Aditya Birla Sun Life International Equity20.259.167.00
Sundaram World Brand Fund Series II17.7912.87-
Sundaram World Brand Fund III17.7612.85-

Mutual Fund Returns

The Mutual Fund Return calculator allows you to calculate returns on mutual funds along the invested capital. When we discuss investments, a very critical aspect is the nature of return that should be expected. Returns may variety in nature over a duration of time. Thus, it is hard to figure out the eventual corpus various expected return rates.

The SBI Mutual Funds Returns Calculator is apt for looking after this specific requirement. So, while you focus on your financial planning, the ready-to-use MF Return Calculator will help you derive how much returns you will gather, considering the variables such as investment type. SIP, Lumpsum etc. together with the duration of investment.

Risk Taken return of Mutual funds

In the world of investments, there is at least one underlying principle - Lesser the risks taken by investor, lesser will be the returns and more the risk taken by the investor, more the returns. This principle is frequently considered by fund managers to evaluate performance of a fund. The manager does so by understanding the underlying risk-reward relationship.

This principle means that the returns are an understanding of how much risk the investor takes when going for investment options. The fund manager earns better returns when risks taken are higher. Similarly, there will be lesser returns when the risk taken is lesser. Along the principle of risk-adjusted return. Considered parameters:

  • Sharpe Ratio
  • Treynor Ratio
  • Alpha

Few well-known Mutual Fund Schemes

Some of the popular mutual fund schemes individuals can go for are listed below:

Franklin India Tax Shield Fund

Franklin India Tax Shield is ELSS tax saving mutual fund. The main objective of the fund is to give growth to the capital investment over medium to long term duration. The returns of the fund overtime are 3 months - 2.30, 6 months - 0.37, 1 year - 10.83, 3 years - 9.62 and 5 years - 18.75. The assets under management as on 31st March, 2018 are INR 36.5 billion.

Canara Robeco Equity Tax Saver Fund

Canara Robeco equity tax saver comes in ELSS category of mutual fund. The objective is to give investor's capital appreciation over medium to long term duration along with tax rebate. The returns of the fund overtime are 3 months - 1.56, 6 months - 3.26, 1 year - 12.92, 3 years - 9.66 and 5 years - 16.31. The assets under management as on 31st March, 2018 are INR 36.5 billion.

ICICI Prudential Tax Plan

ICICI Prudential Tax Plan is a tax saving mutual fund. The primary objective of the fund is to give investor long term growth in the fund by investing in equities and also provide tax benefits at the same time. The returns of the fund overtime are 3 months -0.54, 6 months 0.57, 1 year - 10.50, 3 years - 9.29 and 5 years - 18.60. The assets under management as on 31st March, 2018 are INR 53.0 billion.

Invesco Tax Plan

Invesco Tax Plan is a tax saving mutual fund plan. The objective of the plan is to give investor long term capital growth benefits and also provide tax rebate. The returns of the fund overtime are 3 months - 2.55, 6 months - 2.57, 1 year - 16.35, 3 years - 12.19 and 5 years - 20.59. The assets under management as on 31st March, 2018 are INR 5.5 billion.

Axis Long Term Equity Fund

Axis Long term equity is a growth fund. The objective of the plan is to provide income and growth of the capital invested in the long term. The returns of the fund overtime are 3 months - 5.72, 6 months - 6.76, 1 year - 20.74, 3 years - 11.49 and 5 years - 22.94. The assets under management as on 31st March, 2018 are INR 172.6 billion.

FAQs on Mutual Fund Calculator

Are mutual funds liquid?

Mutual funds are semi-liquid assets, which mean that investors may sell their units whenever they want and receive their money back within a few days.

Are mutual funds safe?

In a way none of the mutual funds are safe as they invest in the capital markets. Although all mutual funds are considered safe one or another way, it all depends on the type of the mutual fund.

Do mutual funds pay dividends?

Yes. Dividends from mutual funds represent a segment of an enterprise’s profits, and larger enterprises will pass on a segment of their profits as dividend income to its investors.

How do beginners invest in mutual funds?

The best method of mutual fund investment is via systematic investment plans. SIPs allow you to buy units of your preferred mutual fund as per the fixed budget. One may link the SIP with the bank account and choose automatic debits.

How do you calculate mutual fund returns?

There are various ways by which one can calculate the returns generates from mutual fund like Compounded Annual Growth Rate (CAGR) or annualized returns, absolute returns. One can use any of the above methods as per his convenience and understanding.

How do you get returns on mutual funds?

The returns on any investment such as mutual fund is measured over a time duration. This is simply the total of its capital appreciation and income generated, divided by the initial investment amount, expressed in terms of a percentage.

How do you make money in mutual funds?

Whether you are seeking a regular income or you wish to generate wealth over a long-time duration, mutual funds are a good option.

How much interest does $1 million gather annually?

For theoretical expression, a $1 million account paying 5 % would gather $50,000 every year. The good thing about compound interest is that when you reserve that interest in the account, it gathers interest in the following year. This way the account will produce $52,500 in the coming year.

How much money should be invested in SIP?

SIP mode of investments has no maximum limit. Lumpsum amounts that you invest in any SIP mutual fund stands at about INR 5,000 or INR 10,000, details of which vary as per the scheme chosen by you. Minimum SIP investment is INR 500.

How much returns do mutual funds give?

The mutual funds returns are decided by the market conditions. For instance, when you invest INR 5 lakhs for a 20-year duration and gather 15% annualized returns, you will be putting together a corpus in excess of INR 80 lakhs.

How much should I invest in mutual funds?

The higher the investments you make, the higher will be your returns. One may study the cost of any mutual fund simply by observing the fund's ratio of expense which is disclosed in the prospectus of this fund.

How Mutual Fund NAV is calculated?

Mutual fund assets are counted either under securities or under cash. Here, securities, mean bonds and stocks. Thus, the total asset value of the fund is inclusive of stocks, cash and bonds at the market value. Net Asset Value (NAV) = (Assets – Debts) divided by (Number of Outstanding units) where Assets = Market value of mutual fund investments + Receivables + Accrued Income Debts = Liabilities + Expenses (accrued). The stocks and debentures’ market values are generally the closing price on the stock exchange. If market value of the investments of a mutual fund scheme is INR 500 lakh. The mutual fund issues 10 lakh units of INR 10 each to its investors. So, the NAV per unit of the fund is INR 50.

How mutual fund return is calculated?

Returns on an investment, assessed over a time duration, is only the sum of the capital appreciation and income divided by the initial investment amount, all expressed as percentage.

What is a good ROI?

Considering yearly inflation of 3% and capital gains of 15%, When the target is a 15% return pre-inflation and tax, you will end up with 12.4% on return. The best return on investment for the active investor is 15% yearly.

What is the average yearly return for S&P 500?

The Average yearly return for the S&P 500, from the beginning in 1928 across 2017, is around 10%.

What is a mutual fund’s average interest rate?

The return on average is 10.41% per year with the post office giving 6-8% per year. Yet, the returns on the post office are certain. While stock market rise or fall, rate of interest fluctuates, you can be sure of 6-8% per year as interest.

What is the average rate of return for the stock market?

The S & P 500 provides an average 10% return. The stock market provides an average 7% return.

What is the average rate of return on a mutual fund?

The 20-year return on mutual funds averages 4.67%. The real return changes as per funds chosen and duration of it in the fund.

What is the average rate of return on a retirement account?

The rate of return of 6 or 7 percent is the average for retirement planning.

What is the average rate of return?

The average rate of return is a measure of the profitability of an investment as per the information gathered from the various financial statements instead of the cash flows.

What is the formula for calculating SIP?

The formula is as follows = FV – PR(1+I) N-1 / i The results are multiplied by (1+i)

What is the risk of mutual funds?

Risk in a mutual fund is accessed along what the investment is going towards. Most often, stocks are way riskier than bonds. Therefore, an equity mutual fund is riskier than the fixed income mutual fund.

What is the best mutual fund for investment in India?

Birla SL Frontline Equity Fund – Backed by an amazing 15 -year track record, Birla SL Frontline Equity Fund has been one of the outstanding performers, that gives your investment all the required nourishment in the form of investments in the fast-moving Indian industries including: Finance FMCG Oil & Gas IT etc.

Which mutual fund is best for lump sum investment?

HDFC Short Term Opportunities Fund is a short-term debt fund initiated in January 2013. This debt fund that has very low risk and an amazing return of 8.68% since the start. For shorter duration investments, of say 3 months and above, this debt fund is one of the best to invest in. This fund relies largely on short-term corporate debt for returns.

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