Systematic Investment Plan (SIP) calculator
What is a Mutual Fund Return Calculator?
Mutual Fund Return Calculator is a tool that is available online for making investments in mutual funds easier for investors. Mutual Funds are popular amongst different sections of investors whether the retail investors or the HNIs or the institutional investors. When it is easier for the HNIs and the institutional investors to analyze the mutual funds deeply as they have different types of resources and professionals working for them, the retail investors have to face the crunch. However, with Fingyan’s online mutual fund return calculator, retail investors can also check and analyze their potential profits by investing in different mutual funds and accordingly take the most financially suitable decision.
Mutual Funds can be referred to as a pool of investment where investors according to their requirement and financial abilities invest in a corpus which is further invested into different types of investment instruments such as liquid funds, debt funds, equities, etc. The profits and the losses incurred on the corpus are shared amongst the participants of the corpus itself according to the proportions of their investments. This investment vehicle has been popular because of its low-risk profile and the high return aspect. Mutual funds provide the opportunity to the retail investor to invest in high-end funds at lower cost; they also get customized investment advice from the MF managers for a low cost.
There are various types of mutual funds in the Indian investor market. Each type of mutual fund has its features and returns. So, it is mandatory to check the prospective returns on the mutual funds you are thinking of investing your money into. Mutual Fund Return Calculator helps you with exactly that. With the details required inputted correctly, it can calculate the exact return value for you on the MF.
The best approach to invest in Mutual funds is through SIP investments which stand for Systematic Investment Plan. In this, the investor invests a fixed amount on a periodic basis say monthly or quarterly. The mutual fund return calculator calculates the returns taking into account the fact that the investment is made on a regular basis.
How does it work?
Mutual Fund Return Calculator is a simple and user-friendly tool that is readily available online and free to use. If you are new to the Mutual fund world and do not have enough knowledge about the investment vehicle, then this calculator will help you analyze and calculate the amount of profit you can make by investing in mutual funds. Fingyan’s Mutual Fund Calculator is a SIP calculator which helps you calculate the earnings on a SIP investment. Here you need to input the basic details about your investment which are the amount you want to invest on a monthly or quarterly basis followed by the frequency of the investment that is monthly or quarterly. Then you have to input the percentage of return which is expected on that particular mutual fund.
For example, ABC Company’s Mutual fund is trading at 15% yearly return, and you want to invest in their scheme so that you can input that percentage in the Expected Rate of Return tab. The next important input is the period of investment or investment horizon; it can range from a few months to years. Mostly Mutual funds are a good investment for a long-term basis. It is because of the compounding effect of the interest that makes the investment grow over the years and hence, more the years you have in hand for your investment, the more profit you can expect. Once you input all these figures in the calculator, the calculator will generate the amount that you can accumulate at the end of the investment horizon. It will also calculate the total investment made during the complete investment period. You can calculate and compare the amount you invested and the amount you accumulate during these years.
To access the Mutual Fund Return Calculator, you need to visit the Fingyan’s website and then on the home page itself; you can find the Mutual Fund Return Calculator on the right-hand side of the page. Once you click on that, you will be redirected to the page where you can calculate the Mutual Fund Return.
Benefits of Mutual Fund Return Calculator
- Time-Saving: It is not only tough but highly time-consuming to calculate the returns from a mutual fund investment manually. There are quite a few difficult financial calculations that go into calculating the return on the mutual fund investments. Hence if you use the mutual fund return calculator, you save a lot of your time. All you need to do is input the basic details in the calculator and get the estimated return on a mutual fund in a matter of just a few seconds.
- User-friendly: This calculator is very easy to use. All you as you need to do is input only the basic figures/numbers related to your mutual fund investment such as the invested amount, time period of MF, etc. and the calculator will give you the required calculation. The calculator can be easily used in just a few clicks, and the Fingyan’s mutual fund return calculator is highly user-friendly.
- High Quality: The online Mutual Fund Return Calculator is based on highly advanced software, and with great internet speed, it can generate results within a fraction of a second. The tedious calculations of Mutual fund returns are calculated within a fraction of seconds due to the high-quality software behind this tool.
- Accuracy: The accuracy of these calculators has always remained high, and its calculations rarely ever falter. The best part is even if you put complicated numbers this calculator will give you exact return value within seconds.
- Free of Cost: This Mutual Fund Return Calculator which is available online on Fingyan.com is completely free of cost. You do not need to sign-up and pay any fees or charges for calculating your mutual fund return value on this calculator. There are no charges or hidden fees attached to the usage of this calculator.
- Accessible Round the Clock: If you are sitting at night and chalking out your investment and want to calculate the return value of your mutual fund, you can use this calculator. This calculator is available round the clock for your service, and there is no time restriction on this. This is because it is completely automatic and runs on software.
- Get personalized results: You might have shortlisted a couple of promising mutual funds according to your financial goals. Now you want to calculate the return using each of these mutual fund’s return rates and your chosen investment amount. So, using this calculator, you can change the rate of return offered by each of the companies or the schemes selected while the other variables retained constantly and you can get the desired values. You can change and alter all the variables accordingly and compare different mutual funds on this calculator to take an informed and calculated financial step.
- Aid to Investment Planning: It is highly important to make investment decisions knowing and analyzing all the related details. With this calculator, you can not only compare different investment and the return value but also check how much time you need for your investment to grow to the desired level. All these details are crucial for making an investment decision, and this Mutual Fund Return Calculator can help you with that
Terms related to Mutual Fund Return Calculator
- Eligibility for Mutual Fund Investment: There are no formal eligibility criteria for investing into Mutual funds. You can invest in a mutual fund if you want to. However, it is important to clear the KYC requirements for opening the account.
- Limit of Investment: You can open mutual fund account just by investing INR 500 per month into SIP investment. There is no maximum limit on the amount of investment in mutual funds generally. However, there might be cap according to different companies or schemes of mutual funds.
- Installments: You can invest in mutual fund all at one go which is known as lump sum investment, and you can also invest periodically which is the SIP investment as mentioned above.
- Growth: The market interest rate and the growth of the underlying asset determine the growth of your mutual funds.
- Maturity: The maturity depends on the type of mutual funds you have invested your money into. If it is open-ended mutual funds, then there will be no fixed maturity date. If it is a close-ended mutual fund, then one can only invest when there is NFO, and there is a stipulated maturity period in these funds.
- Tax on Mutual Funds: In 2018’s Budget, taxes on mutual funds have been revised, and now equity mutual funds are taxable over INR 100000 of gain under the head Long-term capital gain at 10%, and the dividends on these funds will also be taxed at 10%. While the Debt funds and the money or liquid funds will be taxed at 20% (3 years as long-term capital gain) and the dividends will be taxed at 25%. For Balanced Hybrid funds, the tax rate is 10% and 20% for the Conservative ones.
- Withdrawal: The money you have in your mutual fund account can be withdrawn at any point of time provided the scheme does not have any lock-in period. There are schemes which come under 80C and have a certain lock-in period. If there is no such lock-in the period, you just have to wait for having proper units of the underlying asset in your mutual fund account which can be withdrawn in money.
- Who can use the Mutual Fund Calculator? The mutual fund return calculator can be used by anyone who is looking for investing in mutual funds or want to know and understand mutual fund returns and then invest in the schemes. If an investor wants to compare returns on different schemes he/she can use this calculator.
- Where are Mutual Fund Accounts opened? The Mutual Fund account can be opened in any of the Mutual Funds Houses in India which are registered and also in Asset management companies which are authorized to have a Mutual Fund scheme.
- Closure of MF Account Online: The mutual fund accounts can be closed online via your mutual fund agent. Once you have decided to close the account, you can withdraw the amount accumulated in it and then stop using the account by closing it.
Benefits of Mutual Funds
Investing in mutual funds can be one of your major decision towards accomplishing your financial goals and aspirations. Mutual funds are beneficial due to various reasons which are stated below –
- Diversification helps in Risk Management: As an investor, you must have come across a statement, “One should never put all the eggs in one basket” – this statement stands true on logical grounds in the investor arena. With mutual funds, you can invest in different asset classes, and thus your risks of investment get mitigated to a great extent. The more you diversify, the lower is your risk radar. When you invest in mutual funds, you invest both in equities for wealth accumulation and debt funds for mitigating risk and constant return.
- Funds Professionally Managed: It is often difficult for investors especially the small and the retail investors to get professionals to work on their investments. If they invest in mutual funds, they can get professionals managing their funds and thus the chances of making good profit increases.
- Affordable by many retail and small investors: The retail and small investors often cannot afford pricey financial professional’s guidance and thus they make uninformed decisions and lose their money while investing. However, with mutual fund investment, you can get the same financial advice and assistance for much lower and affordable fees.
- Tax Benefits: Equity Linked Savings Schemes comes under section 80 C of Income Tax Act, India. The maximum deduction allowed is INR 150000 per year. These schemes are one of the most sought-after schemes in the mutual fund industry.
- Liquidity: As mentioned above, if there is no locked-in period for the mutual fund scheme, the accumulated fund can be withdrawn at any point in time this makes mutual funds liquid investment which can be used in the times of crisis.