What is Mutual Fund Calculator

A mutual fund calculator is an online tool that helps investors estimate the potential returns on their investments in mutual funds over a specified period. By inputting details like the amount of investment, the expected rate of return, and the investment duration, the calculator provides an estimate of the future value of the investment. It helps investors plan their finances by giving a clear picture of how their investments might grow, taking into account compounding returns.

How Does a Mutual Fund Total Return Calculator Work?

A Mutual Fund Calculator is a useful online tool that helps you estimate the potential returns on your mutual fund investments. Whether you invest through a SIP (Systematic Investment Plan) or make a one-time lump sum investment, the calculator provides a quick way to your returns.

To estimate your returns using the calculator, you'll need to input three key variables: your investment amount (either through a SIP or lump sum), the investment period, and your chosen investment strategy.

When it comes to selecting an investment strategy, you have four options to choose from:
Aggressive: Targets higher returns with an expected rate of 12%, but comes with greater risk.

Conservative: Prioritises safety with an expected return of 6%.

Balanced: Offers a mix of risk and stability, with an expected return of 8%.

Customised: Allows you to input your own expected rate of return, tailored to your personal assumptions.

Lumpsum Investment

FV=P×(1+r/n)nt
Where:
FV = Future Value of the investment
P = Principal amount (initial investment)
r = Annual rate of return (in decimal form)
n = Number of times the interest is compounded per year (usually taken as 1 for simplicity)
t = Time period of the investment (in years)

SIP Investment
FV=P×(r/n(1+r/n)nt−1​)×(1+r/n)
Where:
FV = Future Value of the SIP investment
P = SIP amount (the regular investment amount)
r = Annual rate of return (in decimal form)
n = Number of SIP payments per year (usually monthly, so n = 12)
t = Time period of the investment (in years)

https://calculators.onepercentclub.io/mf-calculator