Mutual funds are one of the favourite investment options which offers a pathway to wealth creation. There are hundreds of mutual fund schemes available and selecting the best one requires some research and assessment.
Before selecting any scheme, it is important to calculate the mutual fund returns and understand its performance. In this article, we delve into the importance of calculating returns before investing in mutual funds and explore how the SIP calculator online can be a valuable tool in this process.
How to Calculate Mutual Fund Returns?
There are two types of mutual fund investment- SIP and Lumpsum. Investing through SIP means investing in a small amount at regular intervals. You can invest monthly, quarterly or half-yearly. And, in lumpsum, you invest in one go i.e., investing your entire amount in one time.
Now, the returns from both of these methods may have a little variation. Therefore, to find the ultimate value of your investment and compute the returns, use a mutual fund calculator.
A mutual fund calculator is an excellent financial tool for calculating the expected returns and the future value of your investment. You can calculate your returns from SIP as well as lump sum. You just need to put your investment amount, expected rate of return and the time period of your investment; and you will get an idea of your maturity value.
Benefits of Using a Mutual Fund Calculator
- It is easy to use and helps you in forecasting approximate projections from your investment.
- We have different financial goals like retirement planning, buying a home, etc. These calculators help with goal planning by calculating the necessary investment amount, which can be made in a lump sum or as recurring SIP installments.
- The SIP calculator online helps you to know the monthly SIP amount you require to reach your goal.
- Manual return calculation can be a time-consuming process. A mutual fund calculator makes your work easier and calculates your return within seconds.
- You can use this calculator to compare various mutual fund schemes. Just select a few good funds and compare their performance and potential returns.
- Using an online mutual fund calculator is completely free of charge and there are no restrictions while using it.
- If you are making a lumpsum investment, there is a lumpsum calculator online to estimate your corpus.
- You can use it to determine the return on either lump sum or SIP investments. You can make investment selections based on a comparison of the expected returns from the two approaches.
Conclusion
We can say that a mutual fund calculator is an essential tool in this modern trading world. The benefits of it are endless. It can help in setting realistic financial goals, making smart decisions and staying on track. Dhan SIP and lumpsum calculators make things easier for you because they provide you the accurate results in no time and can be accessed from anywhere.
