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A mutual fund calculator is an online tool that allows investors to evaluate the returns and future value of an investment based on a certain investing plan. Mutual fund investors should ideally adopt a goal-oriented approach to their investments. Thus, a mutual fund investment calculator in India can assist them in understanding how far they'll get depending on the projected quantity of investment, time horizon, and rate of return.
Though mutual fund investments are exposed to market risks, their returns may be anticipated rather reliably. To determine the predicted returns, use BlinkX's free mutual fund calculator.
What is a Mutual Fund?
A mutual fund is a type of investment vehicle that pools funds from investors and invests them in stocks, bonds, and other securities. Mutual funds are often marketed by financial entities known as asset management firms (AMCs). They hire a professional fund manager to oversee the investments of the clients. Investors receive a certain number of mutual fund units based on the amount they invest in the fund. The gains or losses are also distributed in the same proportion.
How to Invest in Mutual Funds?
You may invest in mutual funds in a variety of ways.
- Direct Plans: You can contact an asset management firm (AMC) and invest in a direct plan. These plans have a low expenditure ratio since they do not include a distributor commission. As a result, you may receive a higher return over time.
- MF Distributor: You can contact a registered mutual fund distributor who can help you invest in different mutual funds. However, you will have to invest in a regular plan that includes the distributor's commission.
- Online: There are several third-party platforms that allow you to invest in mutual funds online. You may visit any of them and invest in a range of mutual funds at low charges.
How a Mutual Fund Calculator Can Help You?
- A mutual fund calculator is a financial instrument that assists investors in calculating the returns on mutual fund investments. Mutual funds can be invested in two ways: once and monthly.
- A Systematic Investment Plan (SIP) is a way of investing in which an individual invests a small sum each month in certain schemes. However, because the NAV of these funds varies monthly, the same sum can be used to acquire a varied number of units in various months.
- An online SIP calculator forecasts returns based on specific criteria such as SIP amount, investment period, and estimated rate of return. The calculator can produce findings in a matter of seconds. You can estimate the future value of your investments using a mutual fund growth calculator.
- An investment, on the other hand, is when a person puts a large sum of money into a single programme. One benefit of one-time investments is that changes in the NAV value do not affect the number of units acquired. To utilise a mutual fund Returns calculator, enter three critical pieces of information: the investment amount, the projected ROI, and the period of the investment.
Mutual Fund Calculation Formula
Calculate the maturity amount for lump sum and SIP investment in mutual funds:
Lumpsum investment
To understand how to calculate mutual fund return, you need to consider the total gain or loss over a specific period. Here is the formula on how to calculate the maturity amount for lump sum investment in mutual funds:
Formula: M = P x (1+R)^n
| M | Maturity amount |
| P | Principal amount |
| R | Estimated rate of return |
| N | Holding period in years |
SIP Investment
Here is the formula to calculate the Maturity amount (M) of SIP investment:
Formula: M = A [ (1 + i)n – 1] x (1 + i)/i
| M | Maturity amount |
| A | SIP contribution per period |
| R | Rate of return |
| N | Holding period in (months) |
How to use BlinkX Mutual Fund Calculator?
BlinkX, an online financial solution provider, offers a mutual fund return calculator in India that is extremely simple to use.
Input your investment amount, projected rate of return, and number of years.
The system will calculate the increased value of your investment at the end of the specified period.
Results will be displayed promptly, reflecting the accrued value of your investment.
Benefits of the Online Calculator for Mutual Fund Return
Here are some of the major advantages of an MF calculator:
- Using an MF calculator is pretty simple. The user interface is quite simple. Hence, anyone can easily navigate and utilise it.
- You may use the calculator from anywhere and obtain the results in seconds.
- The mutual fund SIP calculator offers accurate results, helping you to make the appropriate investment decisions.
- It enables you to know your maturity for both lump sum and SIP investment. You also find the results based on different interest rates, making it easy to invest effectively.
- An MF calculator may also help you plan for future financial investments, as you can easily find your maturity amount. To determine your earnings, you can use a mutual fund interest calculator to estimate the returns on your investment.