Mutual Fund Investments With The Mutual Fund Calculator

Mutual funds are low-risk financial products. The fund manager will manage the investor’s funds in line with the specified investment objectives of the plan. The fund manager’s mission is to meet the investment objectives of the mutual fund scheme through the prudent selection of financial instruments. It can result in capital growth or dependable income.

You may estimate the maturity value of your mutual fund investment using a straightforward online tool called a mutual fund calculator. You get to know the future outcome even before you invest the money. It makes it possible for you to budget your spending and achieve your financial goals. This is because you already know how much money you will receive upon maturity. You can specify the SIP amount, duration, and frequency when calculating the maturity amount for an estimated rate of return on the investment. 

You can select the type of investment by using the formula box on the mutual fund calculator. Either a one-time payment or a series of payments may be made. You choose the investment amount, rate of return, and length to determine the maturity amount. You choose the SIP’s size, frequency, duration, and expected rate of return if the investment is a SIP. The mutual fund calculator displays the investment’s worth upon maturity.

How can the mutual fund calculator be useful?

Evaluating your return on investment before investing in a mutual fund plan is a good idea. A mutual fund calculator is the perfect tool for this task because it is straightforward and simple to use. Even if this is your first use, you won’t encounter any problems.

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Look into how it can benefit you:

  • You may get an overall estimate for 1, 3, and 5-year investment horizons using an MF calculator. 
  • You can plan your future financial strategy using the predicted returns. It helps you choose the top-category funds like ICICI Prudential Asset Allocator Fund

Advantages of using a mutual fund calculator:

The following are some benefits of using a mutual fund return calculator-

  • It allows for mobile financial planning because it is a tool that can be accessed online from any location.
  • It saves you time and guards against mistakes that manual computation may have.
  • It provides an estimation of your return on investment that is reassuringly precise.

How to use a mutual fund calculator?

Use a mutual fund calculator depending on the type of investment you are making:

Lump-sum investment-

  • The mutual fund calculator’s one-time investment option must be chosen.
  • The amount of the investment, the anticipated rate of return, and the length of the investment are next that you must enter.
  • The value of the investment at maturity is displayed by the mutual fund calculator.

SIP investment- 

  • The calculator requires you to choose the SIP option.
  • After that, you enter the SIP’s length, frequency, and investment amount.
  • You can see the value of your investment at maturity using the calculator.
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How to invest in mutual funds?

Various methods can be used to invest in mutual funds.

  1. Direct plans- Contact the asset management firm to invest in the direct plan of your choice. These plans don’t charge a distributor commission, which contributes to their low expenditure ratio. Consequently, over time, you can generate a higher rate of return.
  2. MF distribution- You can speak with a licensed mutual fund distributor who can assist you with the necessary paperwork. You are going to put money into a regular plan that will cost a distributor’s commission.
  3. Online- Several third-party portals are accessible online. You can visit any of them and invest in a selection of mutual funds by paying a little charge. 

Now you know everything about mutual fund investment. Consider all crucial aspects before investing in this financial product.

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