In the fast-paced investment world, mutual funds are one of the most popular choices for achieving financial goals over a period of time. With the help of online calculators, investors can seamlessly determine their returns and plan their investments. Users just need to choose between SIP or lumpsum and enter the investment amount, tenure and expected rate of return.
This article explores why investors must use an online calculator when investing in funds and how they can calculate returns using the same.
Why Calculating Mutual Fund Returns is Important?
Before diving into the details, let’s understand why calculating returns on funds is beneficial:
- Allows users to compare returns offered by different funds and choose the one that best aligns with their financial goals.
- With a complete analysis of returns, you can securely track the progress of your goals.
- Analysing returns helps to determine the risks associated with the investment and allows users to make adjustments wherever necessary.
Benefits of Using MF Calculators
Here are reasons why investors must use an MF calculator:
- Online calculators offer accuracy of results and eliminate the risk of manual calculation errors.
- Users can save time and effort by calculating manually and estimating returns using an online calculator in seconds.
- With a user-friendly interface, anyone can seamlessly calculate returns without any hassle.
- Assessing the returns using a calculator helps users plan their investments more efficiently and set realistic goals.
How does an MF Calculator Work?
An MF calculator plays an important role when it comes to calculating the returns, and it considers the following:
- Amount to Invest: The amount of money you are considering to invest in funds.
- Tenure: The duration you plan to invest.
- Expected Rate of Return: The expected percentage of returns on the basis of past performance of the scheme.
Before you consider all the above-mentioned factors, make sure to understand the frequency of investing if you are choosing an SIP or if you can even choose to go for a lump-sum payment.
Steps to Calculate the Mutual Fund Returns Using an Online Calculator
Follow the steps mentioned below to efficiently calculate returns on your investments:
- Go to the Website: Choose a reliable website or app that is safe, has a user-friendly interface, and offers an online calculator.
- Choose the Investment Type: Know whether you want to invest periodically with Systematic Investment Plans (SIPs) or invest a lump sum amount.
- Enter the Investment Details: Enter the amount you wish to invest, the investment duration you want to invest, and the expected rate of return. Many apps provide the expected rate of return; otherwise, you can analyse the past performance of the mutual fund and assess the percentage.
- Calculate: The website will display the return amount in seconds once all the details are entered.
Key Points to Consider
Make sure to consider the following points to make the best use of an online calculator:
- The calculator provides an estimate of the returns, which can change on the basis of market and economic conditions.
- Online calculators don’t take tax implications into consideration, so make sure to consider these deductions as well.
- Higher-return mutual funds generally include the risk of constant market fluctuations.
Final Thoughts
It is concluded that online calculators are one of the most important tools for determining an estimated return on investment. Be sure to choose a reliable mutual fund app like Bajaj Finserv to use the calculator that is easy to use, provides reliable data, saves valuable time and helps users plan their financial goals accordingly.
If you are considering investing in funds, be sure to make the most online calculators and compare the returns to make well-informed decisions and earn high returns.
