About the Mutual Fund Returns
What is the Mutual Fund Returns?
Most mutual fund investors combine a one-time investment with a monthly SIP. This mutual fund returns calculator projects both together so you can see what your portfolio could be worth after a chosen number of years.
Enter the amount you are investing now, your monthly SIP, the expected annual return and the period. The calculator compounds monthly and shows the projected value, the total amount you put in and the wealth created by returns.
How to use the Mutual Fund Returns
- Initial Amount (INR) (sample: 1,00,000)
- Expected Return (% per year) (sample: 10)
- Years (sample: 10)
- Monthly Contribution (INR) (sample: 5,000)
- Press Project Future Value (results also refresh as you type). The result card shows the Future Value, along with Total Invested, Wealth Gained and Expected Return.
Formula used
FV = P × (1 + i)ⁿ + C × ((1 + i)ⁿ − 1) ÷ i
- P = the initial investment
- C = the monthly SIP
- i = the monthly return = expected annual return ÷ 12
- n = the number of months
Returns are assumed constant; real fund returns go up and down. Use a range of rates (for example 8%, 10% and 12%) to see a realistic spread.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Initial Amount (INR) | 1,00,000 |
| Expected Return (% per year) | 10 |
| Years | 10 |
| Monthly Contribution (INR) | 5,000 |
| Result | Value |
|---|---|
| Future Value | ₹12,94,929 |
| Total Invested | ₹7,00,000 |
| Wealth Gained | ₹5,94,929 |
| Expected Return | 10% |
Tips for using the Mutual Fund Returns
- Direct plans have lower expense ratios than regular plans, which adds noticeably to long-term returns.
- Check a fund's rolling returns rather than one-year performance.
- Equity fund gains held over 12 months are taxed at 12.5% above ₹1.25 lakh a year; shorter-term gains at 20%.