You have invested, but are you worried about how much money you will get after 10-15 years? Mutual Fund Returns Calculator removes this tension. This is a free online tool that can tell you what will be the future value of your investment.

Why is this calculator important for you?

Suppose you are planning to buy a car. You first look at its showroom price, mileage, features, right? Similarly, before investing in a mutual fund, this calculator shows you the “showroom price” (i.e. maturity amount) of that investment. This makes it easier for you to plan.

How does the calculator work?

This calculator works for two types of investments:

For SIP (Systematic Investment Plan):

Suppose you are investing ₹1000 every month for 10 years and the expected return is 12% per annum. A mathematical formula is applied inside the calculator:

FV = P × [ (1 + i)^n – 1 ] × (1 + i) / i

• FV = Future Value (Maturity Amount)
• P = Monthly SIP Amount (₹1000)
• i = Monthly Interest Rate (12% per year = 1% per month = 0.01)
• n = Total Number of Months (10 years × 12 = 120)

You don’t need to solve this complex formula at all. Just enter the amount, time and expected return, the calculator will tell you within a moment that you can get approximately ₹2.32 lakh.

For Lump Sum Investment:

Suppose you invest ₹1,00,000 at once for 10 years at 12% expected return. The calculator will use the formula:

• FV = PV × (1 + r)^n
• FV = Future Value
• PV = Present Value (₹1,00,000)
• r = Rate of Return (12% = 0.12)
• n = Time in Years (10)

Here you will be estimated to get approximately ₹3.10 lakh.

Advantages of using the calculator

• Financial Planning: You will be able to plan your investments according to your financial goals (like car, house, retirement).
• Comparison: You can easily compare the returns of different funds.
• Time Magic: It shows you how a small SIP can grow into a big amount, which motivates you to invest.

So next time before investing in mutual funds, definitely use your digital friend “Mutual Fund Calculator”. This will make your financial journey very easy.

What is a mutual fund?

Nowadays, everyone talks about investing in mutual funds. But what is this mutual fund? Let us understand this from the very basics today, without any technical hassle. Imagine, you and several of your friends plan a picnic together. Everyone contributes Rs 100-200. Now, with the money collected, one man buys snacks for everyone, one man takes care of the travel expenses, and one man arranges the games. In the end, whatever fun is had, everyone benefits from it equally.

Mutual funds are also something similar.

• Investors: You and many other people like you.
• Pool of Money: The money that you all collect together.
• Fund Manager (Professional Man): The expert who smartly invests your collected money in stock market, bonds, or other places.
• Asset Management Company (AMC): The company that hires fund managers.

All investors get profit or loss according to the money they invest. Fund managers and agents charge a small fee for their services.

What is NAV (Net Asset Value)?

Understand NAV like the unit price of any item. Today, the price of 1 kg of wheat is ₹50. Similarly, every mutual fund unit has a price, which is called NAV. The more units you buy, the more your investment will increase.

Advantages of Mutual Funds

• Experts handle it: You don’t need to worry about the share market yourself.
• Diversification: Your money is invested in many places, not just one, which reduces the risk.
• You can start with a small investment: You can start with as little as ₹500 per month through SIP.

So in simple words, Mutual Fund is such a pool where many people invest their money and an expert tries to make good earnings by using it.