Why do we invest our hard-earned money? What drives us towards investments? Obviously, your answer would be the financial goals you may have set for yourself to achieve. These goals can be anything from an education to the wedding of your children.
When the goals are as big as these, you may require a massive corpus. And for that, you can’t rely solely on the savings bank account and fixed deposit. These products may be carrying lesser risk, but their return potential is not worthy of a mention. The returns on these products can range from 3.5%-6.5% per annum, leaving you with little to accomplish your goals.
You can thus take the ride of a mutual fund, which offers a scope for a double-digit return along with increased risk diversification over the long-term owing to the immaculate asset allocation. Since mutual funds are classified into various schemes carrying different levels of risk and return, it is important to know the funds you should be investing into.
If you can bear high risk in a bid to generate a large corpus, equity funds welcome you with open arms. On finding your risk profile on the lower side, debt funds would be the ones you should go with. Whatever may be the case, you can’t take your eyes off from the mutual fund return calculator that provides you the actual return provided by a particular mutual fund scheme for a specific length of time.
It’s important to know the estimate as it can help you plan your investment in accordance with your goals. Let’s explore the calculator here and find how it can help you in the long-run.
Modus Operandi of Mutual Fund Return Calculator Explained Here
Be it the new or existing investors, the calculator helps each class of investors in planning their investment. All you need to do is to enter the name and scheme of mutual fund along with the time period for which you want to know the return. As soon as you enter these details, the calculator will provide the exact return provided by the MF scheme for the chosen period.
Mutual Fund SIP Return Calculator – The Widely Searched Calculator in MF Space
The word ‘SIP’ is quite common among the existing investors, and even those who are yet to take a plunge with the said investment. SIP, which stands for Systematic Investment Plan, enables an investor to get his money invested in a mutual fund scheme periodically – daily, weekly, fortnightly, monthly, quarterly, half-yearly or annually. You can choose any of the frequencies while opting for an SIP.
The best part about an SIP is its ability to reduce the average cost of investment over the long-term. As a result, the SIP eliminates the need for timing the market, which many do and end up burning their fingers as they fail to acknowledge the fact that equity markets can be extremely volatile. And thus, no one can predict the market movement correctly.
So, when the market is on a high, your invested money in SIP buys fewer units and more when the market witnesses correction. This aspect is known as Rupee-cost Averaging, which helps investors decrease the average cost of their investment over time.
The factor that draws many towards an SIP is the scope for compounded returns on the investment. So, if you are looking to invest in equity funds for the long-term, say 10-15 years, you can thus get a massive corpus at the end of your investment period. All you need is to enter a few things in the calculator, which will then do the rest. You are required to enter the following variables –
- Amount of Monthly Investment
- Value of Investment Period
- Fill the ‘Expected Annual Return’ space in Certain Percentage
With these details being fed into the calculator, you can get an estimation of the corpus you are likely to have over the investment period. While entering the annual return, you can choose from 12%-15%. It can go even more. But with the prevalence of risks in a mutual fund investment, it would be better to go with the said percentage.
So, you must have picked out a lot from this article lined up on Mutual Fund Return Calculator. Do use the calculator before investing your hard-earned money in a mutual fund scheme. Also, get a track of the funds you have invested into or about to invest by using the return calculator. By keeping a track, you give yourself the best chance to achieve your financial goals.
Disclaimer – Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.