Mutual Fund Return Calculator | Calculate Mutual Funds Returns Online

Mutual funds have become one of the most popular investment avenues in India, attracting investors from all walks of life. As of June 2019, the average assets under management (AuM) of the entire mutual fund industry stood at a staggering Rs. 24.25 trillion, a significant growth from Rs. 5.83 trillion in 2009. Despite the inherent market risks associated with mutual funds, these investments can yield impressive returns, and a Mutual Fund Returns Calculator can help you estimate your potential earnings.

In this blog, we will explore what a mutual fund returns calculator is, how it works, and why you should use one to plan your financial goals.

What is a Mutual Fund Returns Calculator?

A Mutual Fund Returns Calculator is an online tool that helps you estimate the returns on your mutual fund investments based on key inputs such as the investment amount, tenure, and expected rate of return. Whether you are investing through a one-time lump sum or a Systematic Investment Plan (SIP), the mutual fund calculator helps you make informed decisions regarding your investment.

Mutual fund investments involve different types of returns, including absolute returns, annualised returns, total returns, trailing returns, point to point returns, and rolling returns. Keeping all these factors in mind can be challenging for an investor, but a mutual fund calculator simplifies this process and provides an accurate estimate.

Types of Mutual Fund Returns

Before diving into how a mutual fund calculator works, let’s understand the different types of returns associated with mutual funds:

1. Absolute Return

Absolute return is the total percentage gain or loss of an investment over a specified period without considering the time factor.

2. Annualised Return

Annualised return represents the geometric average of the returns earned each year over a given time period. It helps investors understand the average growth rate of their investment annually.

3. Total Return

Total return includes both the capital appreciation and any income generated (such as dividends or interest) from the mutual fund.

4. Trailing Return

Trailing return refers to the return generated by an investment over a specific trailing period, such as the last year, last three years, or last five years.

5. Point to Point Return

Point to point return measures the performance of an investment between two specific dates. This type of return helps compare investments made at different times.

6. Rolling Return

Rolling return measures the average return for a specific time period, rolled over various intervals. It helps assess the consistency of an investment’s performance.

How Can a Mutual Fund Returns Calculator Help You?

Using a Mutual Fund Returns Calculator can help you in various ways:

1. Full Estimate of Future Returns

The calculator provides an estimate of your returns for 1-year, 3-year, and 5-year investment periods. This helps you understand the growth potential of your investment over different time frames.

2. Financial Planning

The calculator enables you to plan your finances better based on the estimated returns. This way, you can set realistic goals for wealth creation and make informed investment decisions.

3. Easy to Use

The Mutual Fund Returns Calculator is user-friendly and does not require any subject expertise. Even if you are a first-time investor, you can easily navigate and use the calculator.

How Does a Mutual Fund Total Return Calculator Work?

A Mutual Fund Returns Calculator works by estimating the returns on investments based on the inputs you provide. There are two main ways to invest in mutual funds:

1. One-Time Investment (Lump Sum)

In a one-time investment, an investor puts a substantial amount in a mutual fund scheme at one go. One of the primary benefits of opting for a lump sum investment is that the number of units you purchase is not affected by changes in the NAV (Net Asset Value) after the initial investment.

To use the calculator for a lump sum investment, you need to input:

• Investment Amount: The total amount you wish to invest.

• Expected Rate of Return: The estimated annual return rate.

• Investment Duration: The number of years you plan to stay invested.

The calculator will then provide the estimated value of your investment at the end of the specified tenure.

2. Systematic Investment Plan (SIP)

A Systematic Investment Plan (SIP) is an investment method where an individual invests a fixed amount every month in a chosen mutual fund scheme. The NAV changes every month, which means that the same investment amount can buy different quantities of units each month.

For example, if you invest Rs. 1000 per month in a scheme with an NAV of Rs. 10 during the first month, you will get 100 units. If the NAV rises to Rs. 20 in the second month, the same Rs. 1000 will only buy 50 units.

To use the SIP calculator, you need to input:

• SIP Amount: The fixed amount you plan to invest monthly.

• Investment Duration: The number of months or years you wish to invest.

• Expected Rate of Return: The expected annual rate of return.

The SIP calculator will then show you the estimated maturity value and the total wealth gained.

Estimated Returns on Key Schemes

There are three main types of mutual fund schemes you can invest in:

1. Equity Funds

• Aditya Birla Sunlife Frontline Equity Fund (Moderate): 9.47% – 10.50%

• HDFC Mid-cap Opportunities Fund (High): 12.60% – 16.99%

• ICICI Pru Focused Bluechip Equity Fund (Moderate): 13.18% – 11.03%

2. Debt Funds

• Aditya Birla Sun Life Active Debt Multi-manager FoF Scheme (Low): 8.30% – 6.92%

• Axis Short Term – Direct Plan (Moderate): 10.06% – 8.25%

• Canara Robeco Income – Reg (High): 13.50% – 8.94%

3. Hybrid Funds

• Indiabulls Savings Income Direct-G (Low): 9.02% – 11.42%

• Mirae Asset Hybrid Equity Direct-G (High): 12.07% – 14.04%

• ICICI Pru Equity & Debt Direct-G (High): 10.43% – 12.20%

When you use a Mutual Fund Returns Calculator, you can input similar variables to get an estimated return on your chosen scheme.

How to Use RevisionTown‘s Mutual Fund Returns Calculator?

The RevisionTown Mutual Fund Returns Calculator is an easy-to-use online tool that provides an accurate estimate of the returns on your mutual fund investments. Here’s how to use it:

1. Enter the Investment Amount: Enter the amount you have invested in the mutual fund.

2. Enter the Expected Rate of Return: Provide the estimated rate of return for the scheme.

3. Enter the Investment Duration: Mention the number of years you plan to stay invested.

The calculator will then display the appreciated value of your investment at the end of the specified tenure within seconds.

Advantages of Using RevisionTown‘s Mutual Fund Returns Calculator

The RevisionTown Mutual Fund Returns Calculator offers several advantages, making the life of investors easier:

1. Fairly Accurate Estimates

The calculator provides a fairly accurate estimate of the returns on your mutual fund investments, helping you make informed decisions.

2. Saves Time

It saves valuable time by eliminating the need for manual calculations, which can be both complex and prone to errors.

3. Convenient and Accessible

Since it’s an online tool, you can use it anytime, anywhere, making it convenient for financial planning on the go.

Conclusion

Mutual funds are a popular investment option for wealth creation in India, offering the potential for attractive returns. A Mutual Fund Returns Calculator is an indispensable tool that helps you estimate your investment returns, plan your financial future, and make informed decisions about your investments. Whether you are investing via a lump sum or SIP, using a mutual fund returns calculator ensures that you have a clear idea of your potential earnings.

If you are planning to invest in mutual funds, use the RevisionTown Mutual Fund Returns Calculator today to get an accurate estimate of your investment growth and take the first step towards achieving your financial goals.