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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 at 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.

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 making a decision 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 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 and unique feature 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 INR1,50,000 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.

Benefits of using 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.

A Few of the well-known mutual fund's schemes to opt for are

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 is 3 months 2.30,6 months 0.37, 1year 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 is 3 months 1.56, 6 months 3.26, 1year 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 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 is 3 months -0.54, 6 months 0.57, 1year 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 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 is 3 months 2.55, 6 months 2.57, 1year 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 is 3 months 5.72, 6 months 6.76, 1year 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.

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