Estimate the growth of your SIP and Lumpsum investments.
A mutual fund calculator is a powerful tool to project the potential growth of your investments. You can use it as a SIP calculator for regular monthly investments or as a lumpsum calculator for a one-time investment. By entering your investment amount, an expected return rate, and the time period, you can see the magic of the power of compounding.
This tool's year-wise breakdown table provides a clear view of how your initial investment and subsequent returns grow over time, helping you plan effectively for your long-term financial goals.
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.
Both have their advantages. A SIP (Systematic Investment Plan) is ideal for salaried individuals as it allows for disciplined, regular investing. It also helps in averaging out the purchase cost (Rupee Cost Averaging). A Lumpsum investment is suitable if you have a large amount of surplus money and believe the market is valued attractively for a one-time investment.
The NAV of a mutual fund is the per-share market value of the fund. It is calculated by dividing the total value of all the assets in a fund's portfolio, minus all its liabilities, by the number of shares outstanding. You buy mutual fund units at the prevailing NAV.
The Expense Ratio is an annual fee that all funds charge their shareholders. It expresses the percentage of assets deducted each fiscal year for fund expenses, including management fees, administrative fees, and other operating costs. A lower expense ratio is generally better as it means more of your money remains invested.
Equity funds primarily invest in stocks and are considered high-risk, high-return investments suitable for long-term goals. Debt funds invest in fixed-income securities like government bonds and corporate debt, making them lower-risk investments suitable for short to medium-term goals.
No, mutual fund returns are not guaranteed. They are subject to market risks, and the past performance of a fund does not guarantee future results. The value of investments can go up or down. That's why it's important to choose funds that align with your risk appetite and investment horizon.