#MUTUAL FUND YIELD CALCULATOR HOW TO#

MF calculators also enable you to compare different mutual fund schemes and make an informed decision.

For instance, if you’re saving for a long-term goal such as retirement or your child’s college education, the calculator can help you understand how much you need to invest regularly to reach your target. By projecting future returns it allows you to set realistic financial goals and work towards them systematically. The benefits of using a Mutual Fund Calculator, also known as an MF calculator, are manifold: Planning:Īn MF calculator helps you plan your investments better. The longer you stay invested, the more you can benefit from compounding, as your earnings generate even more earnings.

Compounding, often described as “interest on interest”, is the process where the returns on an investment are reinvested to generate additional earnings over time. One of the key principles that a mutual fund calculator highlights is the power of compounding. Once you input these details, the calculator uses the formula of compound interest to estimate the future value of your investments, painting a picture of your potential earnings. You can base this on the past performance of the fund, but remember, past performance is not a guaranteed indicator of future returns. This is a prediction of the annual returns you expect from your mutual fund investment. This is the duration for which you plan to keep your investment in the mutual fund scheme. This is the initial step where you feed in the SIP amount you plan to invest regularly, or the lump sum amount you wish to invest at once. The process of using a Mutual Fund Return Calculator, whether a SIP calculator or a lump sum calculator, is quite straightforward.

#MUTUAL FUND YIELD CALCULATOR HOW TO#

How to Use a Mutual Fund Return Calculator By churning these inputs, the calculator provides an estimate of what your lump sum investment could potentially yield over the designated investment period. This calculator also requires three inputs – the lump sum investment amount, the investment duration, and the expected rate of return. On the flip side, the Mutual Fund Lumpsum Calculator comes into play when an investor decides to put a significant amount into a mutual fund scheme all at once. This is especially helpful in demonstrating the potential of SIP investments to accumulate wealth over the long term. Once you feed these details into the calculator, it leverages the power of compounding to provide an estimate of the future value of your SIP investments. To use this calculator, you need to input the SIP investment amount, the duration of the investment, and the expected annual returns. The Mutual Fund SIP Calculator helps investors estimate the potential returns on their SIP investments over a chosen period. Mutual Fund SIP CalculatorĪ SIP or Systematic Investment Plan allows investors to contribute a fixed amount regularly to a mutual fund scheme. There are different calculators tailored to the type of investment you plan to make. The world of mutual fund calculators isn’t one-size-fits-all. Understanding the Types of Mutual Fund Calculators Whether you are planning to make a one-time investment (lump sum) or spread your investments over a period ( Systematic Investment Plan or SIP), the mutual fund investment calculator can be an invaluable ally in your financial journey. It takes into account various factors such as your investment amount, the duration of your investment, and the expected annual returns. What is a Mutual Fund Calculator?Ī Mutual Fund Calculator is an online tool specifically designed to estimate the potential returns on your mutual fund investments. That’s where the Mutual Fund Calculator, a tool that simplifies this process, comes in. However, navigating the maze of calculating returns can sometimes be intimidating. Their potential for high returns coupled with the diversity they bring to an investment portfolio makes them an attractive choice. In today’s fast-paced financial world, mutual funds have become a go-to investment avenue for both novice and seasoned investors.

Mutual fund yield calculator