A Mutual Fund calculator lets you know how much to invest in a lump sum to achieve the gains you want in the future.
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Choose Hybrid funds to balance risk and reward.
According to financial needs, choose between a mutual fund with lump sum investment or a SIP.
A mutual fund is a scheme of investment which is managed by a professional fund manager. This is a fund of investment that collects capital from a number of investors, and buys securities linked to the markets. The fund objective is a common one, and based on the needs of investors of a specific fund, securities are chosen accordingly. Typically, a fund house is an asset management company that invests in mutual funds based on the investor’s investment requirements.
A mutual fund calculator, or a mutual fund return calculator is an online financial tool that computes your returns from a particular mutual fund. Since investors can invest in a mutual fund through a SIP and a regular lump sum mutual fund, the calculator helps you to choose which avenue of investment you may want ultimately.
With a mutual fund calculator, you can almost predict the returns that your mutual fund investment can yield. All you have to do is enter some values in respective fields online and get some idea of your returns. Based on this, you can go ahead and make choices of funds that seem appealing to you, given your financial goals. You must fill in the amount to be invested, the estimated return (based on past performance values) and the tenure you wish to remain with your investment. The calculator automatically calculates your estimated gains.
With investment, the first thing you should do is your homework. It is the same with mutual fund investment. If you have selected a few funds of your choice, you may want to compare them before finalising one. With three broad kinds of schemes, like hybrid, debt and equity funds, you should know that you are choosing the one that matches your requirements. By giving you a rough idea of returns from your investment, the calculator helps you to make informed decisions and solid choices.
Here are some important benefits of a mutual fund calculator:
You can invest in mutual funds through a reliable brokerage (like Motilal Oswal), or any good AMC. Most investments are conducted easily through online channels. In case you are a fresh investor with a brokerage or AMC, you will have to provide your KYC information and other required documentation. Depending on the financial institution you work with, requirements may vary, but it is easy to invest in mutual funds of your choice. You may also consult a financial advisor for your needs.
As mutual funds invest your capital in equities markets, there is always the possibility of negative returns while you invest in any mutual fund. Nonetheless, with proper financial planning and organisation, you can do a lot to mitigate risk.
Based on the data and information released by the Securities and Exchange Board of India (SEBI), there are about 1,013 mutual fund plans in India.
Mutual funds have a degree of risk, and this could be significant, based on the equities that are invested in. As these funds are linked to market instruments, there is always the risk of price fluctuations, liquidity, trading volumes, and other variables that make the markets unstable.
There are various mutual funds for different kinds of investors, depending on the investment horizon, the potential for risk and the returns to be generated. For example, those mutual fund investors who select equity-based mutual funds, like rewards in the long term, but don’t mind the substantial risks involved. In contrast, those schemes investing in a blend of debt and equity-oriented funds offer a balanced investment, and those that invest in fixed income instruments have hardly any risk involved.