How Can Calculate Returns on Your Mutual Fund Investments?

mutual fund investments returns calculator

Mutual Fund Returns SIP Calculator, Calculate Mutual Fund Performance

A mutual fund is a worthy investment which can give good returns in the long run. Any investor who wants to know the estimated returns from these funds is always sceptical about the process as there are a lot of fluctuations in the market. However, the mutual fund sip calculator can help the investor know the exact worth of their investments which can eventually help them in further planning accordingly.

What is SIP and SIP calculator?

The investment made through the systematic mode on a periodic basis is known as Systematic Investment Plan. This kind of investment is known to help individuals earn high returns in the long run. An MF SIP calculator is an ideal tool that can help the investor calculate the estimated returns over a period of time. To use the same, the investor needs to punch in a few indicators including the amount invested and the frequency of the investment.

Using the SIP Calculator

The returns on the mutual fund investments can be calculated with the help of this calculator in a fairly easy manner.

  • The user needs to type in the SIP duration ie the time frame for which this investment is being made. The duration of investment in the SIP can range from few months to few years too.
  • Another variable that is needed to check the returns on the mutual fund investment is the monthly SIP amount that you intend to invest in the fund to create the target corpus. When you fill in the amount of monthly investment to be made, the estimated returns at the maturity period come up. If this calculator is being used to estimate on how much money is needed to invest in a mutual fund scheme so that a specific amount is available at end of the SIP tenure, the target amount needs to be entered and the calculator will come up with the figures of the required monthly investments that you should be doing to achieve this target.
  • You can also estimate the rate of return on your investments. This can be determined by checking the performance track record of the mutual fund scheme that you intend to invest in. the details of the mutual fund scheme can be checked out from the factsheet which is available on the fund owner website too.

This calculator is free to use and you can thus change the variables with ease to estimate different returns that can be expected in lieu of the amount that you put in on a monthly basis in the mutual fund scheme. These calculators, however, do not take into consideration the capital gain tax that may be incurred by the investor of the probable inflation that might crop up during the years of investment.

Using the SIP Advanced Calculator

This is an advanced variant of the SIP calculator which helps in calculating the returns of the SIP. This variant also factors in inflation over a period. Thus, this variant is able to provide the user with a more realistic picture of the inflation by adjusting the investments and profits. The user of this calculator needs to enter the periodic amount to be invested, the tenure of the investment, and the rate of interest and expected rate of inflation. This calculator thus predicts the returns that could be generated before and after the inflation.

Using the SIP Need Calculator

As has been mentioned earlier too, the SIP calculator is known to determine the amount of the monthly investment so that a targeted amount of money can be accumulated over a period. When using the SIP need calculator, the investor needs to fill in the desired amount or the target corpus, the numbers of years in hand they have and the expected rate of return. This will give in the estimate of investments that need to be made on a monthly basis to achieve this objective.

Benefits of using the SIP calculator

The SIP calculator is known to help the investors in making the investment plans quickly and at a rapid pace. The mathematical formula of calculating the SIP returns is very complex if the process is taken up manually. There is also a great chance of miscalculations if the process is done manually. By using the SIP calculator, all such fears are negated and there is an even playing field for both new and experienced investors who just need to key in a few indicators in order to know the estimated rate of return on their investments.

SIP investment is a great way of collecting a corpus fund in the long run and by using the SIP calculator judiciously, you can even plan the amount that would be available after a certain number of years. This amount will definitely help you achieve long term goals that you might have set in for yourself and your family.

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