# Mutual Fund Returns Calculator

A mutual fund returns calculator is a tool that can help you calculate returns and the estimated future value of your investment. Mutual Funds are one of the most preferred investment options by Indian investors. As mutual fund investments are content to market risk, every investor should ideally take a goal-oriented approach to plan their investments. Here, a mutual fund returns calculator can help understand the amount of investment and time required to achieve the goal amount.

### What are Mutual Fund Returns?

Mutual Funds are one of the excellent investment strategies offering better returns and diversification. The investment in assets has split among debt and equities. Higher risk with a superb return opportunity is the feature of funds that are more into equities. These assets perform better compared to other asset classes.

However, mutual fund investments are liable to market risks, and they can assess profits reasonably and accurately. You can utilize the free mutual fund return calculator from the Times of India to calculate the Number of expected returns.

#### How can a Mutual Fund Returns Calculator Help you?

Before investing in a mutual fund scheme, assessing your Return on investment is a good practice. For doing so, an MF Calculator is the utility tool as it is simple and easy to operate. You will not encounter any troubles even if you use it for the first time.

Check out how it can help you:

An MF calculator will provide the total estimate for one, three, and five-year investment horizons.

It assists you in designing your future financial policy based on the estimated returns.

### How does a Mutual Fund Returns Calculator Work?

The mutual fund calculator is simple to use. Using the compound interest formula, it estimates the potential Return from investment through SIP or lumpsum.

A mutual fund calculator is a lumpsum returns calculator which requires you to enter the one-time lump sum amount, the expected rate of Return, and the period in years that's it. The calculator will automatically calculate the total investment amount, estimated returns, i.e., wealth gainer, and actual value of the investment made.

For instance, the above example assumes investing Rs. 5,00,000 in a mutual fund for eight years, and you expect an average return of 11% per annum. The interest would consider compounded annually.

The formula for lumpsum calculations can use as follows:

A=Rs.5,00,000 {(1+00.11/1)^8}

A=Rs.5,00,000 x 2.303

A=Rs.11,52,269

Alternatively to using this formula to calculate a lump sum, an online calculator is a much simpler way of computing your investment value.

### The formula for Mutual Fund Returns Calculator:

With a compounded annual growth rate or CAGR, you can calculate the average rate of growth for an investment period of more than 12 months, and the formula is {[(current NAV/beginning NAV)^(1/the Number of years)]-1} x100. If your investment is in months, you can replace 1/number of years with 12/number of months.

### How to use the Mutual Fund Returns Calculator?

Here are a few easy steps to guide you in using the calculator:

- Ensure you have all the related data available to you
- Enter the variables as mentioned in the formula on their designated slots.
- The MF Returns will display the amount instantly.

### Mutual Fund Returns Calculator Benefits:

Mutual Fund Calculator eliminates your dependency on distributors/agents to calculate returns for you.

- It allows you to calculate returns on your lump sum investments at any given time.
- Within a few seconds, it generates results from complex formulas.
- It provides accurate results every time.
- Easy to use and understand.
- It saves your time and prevents errors that can come with manual calculation.

### FAQ'S

How to use the Mutual Fund Returns Calculator?

Here are a few easy steps to guide you in using the calculator:

Ensure you have all the related data available to you.

Enter the variables as mentioned in the formula on their designated slots.

The MF Returns will display the amount instantly.

How does the mutual fund returns calculator work?

Like other asset classes, Mutual Fund returns have calculated by computing valuing in the value of your investment over a period compared to the initial investment. The net Asset Value of an MF indicates its price.

Are mutual fund returns guaranteed?

MF doesn't guarantee capital protection or fixed returns. However, this is good, as MF would be a poor investing product if they did. The purpose of investing in MF is to earn higher returns than what traditional investing options offer.

How to Calculate your Mutual Funds Returns Calculator- SIP and Lumpsum Investments?

Point-to-Point or Absolute Returns.

Absolute Return = (Present NAV – initial NAV) / initial NAV × 100.

Simple Annualised Return.

Here is the formula.

Simple Annualised Return: [(1 + Absolute Rate of Return) ^ (365/number of days)] – 1.

What is the average 10-year Return on mutual funds?

The best-performing large-company stock mutual funds have produced returns of up to 17% in the last ten years. It should note that average annualized returns have been higher than usual — at 14.70% during this time — driven by a multi-year bull market.