Mutual funds are a trending topic nowadays. Numerous investors have become aware of Mutual Funds from the various successful advertising campaigns. While the campaigns have done well to create awareness, before you step out into the universe of mutual funds in India, it is fundamental to gain basic knowledge of mutual fund ventures. Mutual Funds are one of the most mainstream roads of investments in the Indian context and there various types of mutual funds depending on your investment needs, like equity funds, index funds, fixed-income funds, etc. And if you are looking for tax saving mutual funds, then ELSS mutual funds are your best option.
Through various campaigns online or on the television, people always keep hearing that Mutual Fund investments are subject to market risk. The investors in the Indian market often look for estimations and assurances when it comes to investing in the stock market through Mutual Funds. The returns can be assessed accurately using a Mutual Fund Calculator. The investors can use the several Mutual Fund Calculators available on the internet.
The most commonly asked question is, how does a Mutual Fund Calculator help? An investor should be familiar with various types of Mutual Fund Returns. Some of them are, absolute returns, annualized returns, total return, trailing return, point to point return and rolling return. It can be very confusing for a prospective investor to keep all these factors in mind. This is when Mutual Fund Calculators come into the picture and are extremely helpful.
- It will provide you with full gauge for 1 year, 3 years and 5 years of investment periods.
- It empowers you to do future financial planning based on the estimated returns.
- You need not be a subject expert to use these number crunchers. They are easy to use, and even somebody who has never used them before will not find them challenging to use.
A Mutual Fund Calculator is a tool that allows the investors to figure the profits yielded by putting resources into Mutual Funds. In broad terms, there are two manners by which one can put resources into mutual funds- one time & monthly. SIP or Systematic Invsestment Plan is a way of investing in Mutual Funds. It is when an individual invests a small amount of money on a monthly basis on designated schemes. A SIP Calculator predicts the returns on your SIP depending on various parameters. You simply need to know the SIP amount, duration of investment and expected rate of return to add to the calculator.
How to use Mutual Fund Calculator?
These calculators are fairly easy to use. All one needs to do is enter the amount of investment, expected rate of return and the number of years for which the investment is being made. The result based on all these parameters will be shown within seconds.
There are various advantages of these calculators:
- It provides a fairly precise estimate of the mutual fund investments.
- It saves time by avoiding to have to do the calculations manually.
- And since it is available on the internet, accessibility will never be an issue.
Calculate your investments using a Mutual Fund Calculator, and invest your resources prudently.
