Mutual Fund Calculator

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Mutual Fund Returns Calculator

Estimate your potential wealth through SIP or Lumpsum investments.

Monthly SIP (Systematic Investment Plan) One-Time Lumpsum

Investment Summary

Total Invested Amount: –
Estimated Wealth Gain: –
Total Expected Value: –

Understanding the Mutual Fund Calculator

A Mutual Fund Calculator is an essential tool for investors to project the future value of their investments. Whether you are starting a Systematic Investment Plan (SIP) or putting in a one-time Lumpsum, understanding the power of compounding is key to long-term wealth creation.

How to Use the Calculator

  1. Investment Type: Choose 'Monthly SIP' if you plan to invest a fixed amount every month, or 'Lumpsum' if you are making a one-time investment.
  2. Investment Amount: Enter the cost/capital you wish to invest.
  3. Expected Return Rate: Input the annual percentage (%) you expect the fund to generate. Equity funds often range between 10-15%, while debt funds might range from 6-8%.
  4. Time Period: Specify the duration in years you intend to stay invested.

SIP vs. Lumpsum Investment

SIP (Systematic Investment Plan) allows you to invest small amounts regularly. This method benefits from Rupee Cost Averaging, where you buy more units when prices are low and fewer when prices are high. It is ideal for salaried individuals aiming for long-term goals.

Lumpsum is a bulk investment made at once. This is generally preferred when you have a significant surplus of cash (like a bonus or sale of an asset) and the market conditions are favorable.

The Math Behind the Calculation

For SIP investments, the formula used is for the Future Value of an Ordinary Annuity:

FV = P × [{(1 + i)^n – 1} / i] × (1 + i)

Where:
P = Monthly investment amount
i = Monthly rate of interest (Annual Rate / 12 / 100)
n = Total number of months (Years × 12)

Example Scenario

If you start a monthly SIP of 5,000 for 10 years with an expected annual return of 12%:

  • Total Invested: 600,000
  • Wealth Gained: 561,695
  • Total Maturity Value: 1,161,695

This demonstrates how consistent investing over time can lead to substantial capital appreciation.

document.getElementById('mfType').onchange = function() { var label = document.getElementById('amountLabel'); if (this.value === 'sip') { label.innerText = 'Monthly Investment (Cost)'; } else { label.innerText = 'Total Lumpsum Investment (Cost)'; } }; function calculateMFReturns() { var type = document.getElementById('mfType').value; var p = parseFloat(document.getElementById('mfAmount').value); var annualRate = parseFloat(document.getElementById('mfRate').value); var years = parseFloat(document.getElementById('mfYears').value); if (isNaN(p) || isNaN(annualRate) || isNaN(years) || p <= 0 || annualRate <= 0 || years <= 0) { alert('Please enter valid positive numbers in all fields.'); return; } var totalInvested = 0; var totalValue = 0; if (type === 'sip') { var monthlyRate = annualRate / 12 / 100; var months = years * 12; totalInvested = p * months; // SIP Formula: FV = P × [((1 + i)^n – 1) / i] × (1 + i) totalValue = p * ((Math.pow(1 + monthlyRate, months) – 1) / monthlyRate) * (1 + monthlyRate); } else { var i = annualRate / 100; totalInvested = p; // Lumpsum Formula: FV = P × (1 + i)^n totalValue = p * Math.pow(1 + i, years); } var wealthGain = totalValue – totalInvested; document.getElementById('resInvested').innerText = formatCurrency(totalInvested); document.getElementById('resGains').innerText = formatCurrency(wealthGain); document.getElementById('resTotal').innerText = formatCurrency(totalValue); document.getElementById('mfResultSection').style.display = 'block'; } function formatCurrency(num) { return num.toLocaleString('en-US', { minimumFractionDigits: 0, maximumFractionDigits: 0 }); }

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