Mutual Fund Returns Calculator

Estimate the potential returns on your Mutual Fund investments, whether through SIP or a lump sum, and plan for your financial goals.

Investment Details

₹ 5,000
12 %
10 Years

Invested Amount

₹ 0

Estimated Returns

₹ 0

Total Value

₹ 0

Year-wise Growth Projection

Year Invested Amount Estimated Returns Total Value

Understanding Mutual Fund Returns and Investment Planning

Our Mutual Fund Returns Calculator helps you estimate the potential growth of your investments and make informed financial decisions.

What is a Mutual Fund?

A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. It is managed by professional fund managers who aim to generate returns for the investors.

Mutual funds offer diversification, professional management, and affordability, making them a popular choice for both new and experienced investors.

SIP vs. Lump Sum Investment

There are generally two ways to invest in mutual funds:

  1. Systematic Investment Plan (SIP)
    Invest a fixed amount regularly (e.g., monthly). This method helps in rupee cost averaging and is ideal for long-term wealth creation.
  2. Lump Sum Investment
    Invest a large one-time amount. This is suitable when you have a significant sum available and believe the market conditions are favorable.

How Mutual Fund Returns are Estimated

The calculation of mutual fund returns, especially for SIPs, involves compounding. While actual returns can vary based on market performance, our calculator uses your expected annual return to project future value.

For SIPs, the future value (FV) can be estimated using the future value of an annuity formula. For lump sum, it's a simple compound interest calculation.

$$FV_{SIP} = P \times \frac{((1 + i)^n - 1)}{i} \times (1 + i)$$ $$FV_{Lump Sum} = P \times (1 + R)^N$$

Where:

  • $P$ = Monthly Investment (for SIP) or Principal Amount (for Lump Sum)
  • $i$ = Monthly Expected Return Rate (Annual Rate / 12 / 100)
  • $n$ = Total Investment Period in Months
  • $R$ = Annual Expected Return Rate (for Lump Sum)
  • $N$ = Total Investment Period in Years (for Lump Sum)

Frequently Asked Questions

No, the returns shown are estimations based on your input for the expected annual return. Mutual fund investments are subject to market risks, and actual returns may vary.

Rupee cost averaging is a strategy used in SIPs where you invest a fixed amount regularly. This means you buy more units when the market is low and fewer units when the market is high, averaging out your purchase cost over time.

The investment period plays a crucial role due to the power of compounding. Longer investment periods generally lead to significantly higher returns, especially in mutual funds where returns are compounded annually.