There are various types of mutual fund returns that an investor should be familiar with. They are absolute return, annualised return, total return, trailing return, point to point return, and rolling return.
It can be somewhat confusing for a prospective investor to keep so many factors in mind, which is where the mutual fund return calculator online can be immensely helpful.
- It will provide you with the full estimate for 1 year, 3 year and 5 year investment periods.
- It enables you to do future financial planning based on the estimated returns.
- You don’t need to be a subject expert to be able to use this calculator. It’s simple to use, and even someone who hasn’t used it before will not find it challenging to navigate.
A mutual fund calculator is a practical financial tool that enables an investor to calculate the returns yielded by investing in mutual funds. In broad terms, there are two ways in which one can invest in mutual funds – one time & monthly.
SIP or Systematic Investment Plan is an avenue of investing in mutual funds. In a SIP, an individual invests a small amount every month on designated schemes. One thing to remember is that the NAV of such funds changes every month and the same amount of money can purchase a variable number of units in different months.
Imagine that you invest via SIP of Rs. 1000 for 12 months. At the time of availing the SIP, the NAV of your chosen stock is Rs. 10. So, you can purchase 100 units of the stock in the first month. In the second month, the NAV increases to Rs. 20. Your 1000 rupees can now buy just 50 units of the same stock.
An online SIP calculator predicts the returns on your SIP based on specific parameters. You simply need to input the SIP amount, the duration of investment and the expected rate of return, and the calculator will wield the results in seconds.
An investment is when an individual invests a substantial amount at one go in a particular scheme. One of the primary advantages of opting for one-time investment is that the change in NAV value does not affect the number of units you can purchase.
You need to input three essential data points; namely, your investment amount, estimated ROI and the duration of your investment.