sip calculator

Switch on Mutual Fund Return Calculator to Compute Your Investment Value

Finance

The word ‘Calculator’ stays undetached from the world of investments as you would be keen to know the value of your penny after a certain point of time. So if you want to invest in a mutual fund, you better get an idea of what’s in store for you there. For that, you should understand the function of Mutual Fund Return Calculator, which computes the estimated earning on your investments over time.

The advice would be not to get too influenced by the growing TV Ads highlighting the significance of mutual funds. Instead, take a close look at the calculator to find where you are going to be after 5, 10, 15 or whatever number of years. So switch on the calculator and understand its modus operandi in this article.

Mutual Fund SIP CalculatorGives Earning Estimate of Installments

An SIP is the most common and popular mode of investments in a mutual fund. After all, your money goes in bunches via an SIP instead of a massive one-time investment. The SIP, which stands for Systematic Investment Plan, enables you to invest in a mutual fund at predetermined intervals – weekly, fortnightly, monthly, quarterly, half-yearly or even annually. And what’s good is that you can invest with as low as ₹500 on a monthly basis.

So if you want to invest in an equity scheme via an SIP, you can know the value of your investment using the calculator. The SIP calculator will ask you to input monthly investment amount, the period of investment and expected annual return on investment (ROI). As far as ROI is concerned, you can enter anywhere from 12% to 15% as equity investments tend to offer double-digit returns over a long period of time, say 7-10 years. On a monthly investment of ₹5000, you can grow your portfolio to ₹12.33 lakh at an assumed return of 13%. The returns can notch up even more in the wake of favourable market cues. The SIP calculators are available online for use. So go online and see a picture of your MF investment future.

Mutual Fund Lump Sum Return Calculator

The word ‘Lump Sum’ itself says it’s about a one-time investment that a mutual fund investor would need to make. You can invest a lump sum and enjoy handsome returns by the time you wish to end your MF investment. There are calculators to compute return on your lump sum investment in a mutual fund. All you need is to enter investment amount, the period of investment and the expected annual return. After filling these, you will get to know the value of your investments over time. So, if you park a lump sum of ₹3 lakh for say 10 years, your investment is estimated to be ₹10.18 lakh (approx.) at an assumed annual return of 13%, giving you a wealth gain of around 7.18 lakh (approx.)

Mutual Fund Return Calculator of Top AMCs

You can find separate calculators to compute the returns on your mutual fund investments at some of the top asset management companies (AMCs) including the likes of SBI Mutual Fund, ICICI Mutual Fund, HDFC Mutual Fund, etc.

ICICI Mutual Fund Calculator

All you need is to visit the website of ICICI Prudential Mutual Fund and come to the section of SIP. While scrolling down the page, you can find the calculator wherein you need to enter your financial goal in rupees. The annual rate of return and investment period would be 4% and 5 years by default. So, after entering the goal, you should change the return to at least 13%. And then see, the number of monthly installments you are supposed to make to reach your goal over a period of 5 years. If the installment amount is beyond your reach, you can increase the number of years to get the monthly investment figure within your ability to invest.

Example – To build a corpus of ₹12 lakh over a period of 5 years at 13% annual return (assumed), one has to invest around ₹14,000. However, the monthly investment requirement drops to around ₹5,000 to build the same corpus over a period of 10 years at the same rate of return. Similarly, you can calculate the lump sum investment to be made by disclosing your financial goal.

Mutual Fund Calculator HDFC

Like ICICI MF, you can calculate the estimated return on HDFC Mutual Fund investments by visiting the official web page of the AMC. Subsequent to your visit, you can jump to SIP Calculator and Lump Sum Calculator pages and enter the required values to get an idea of the monthly investments you need to make.

 

Disclaimer: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.

Vikas Das is one of those expert writers in finance who has enlightened the readers about various banking and investment products like personal loan, home loan, car loan, mutual fund, fixed deposit and others.

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