Mutual fund calculator
What is the formula to calculate mutual funds returns?
The formula for a Mutual fund calculator is M = P ([1 + i]n – 1 / I (1 + I)
M is the amount you get at maturity
P is the amount you invest regularly
n is the number of payments
I is the rate of interest
What is Mutual Fund Calculator?
A mutual fund calculator is a useful financial tool that helps investors figure out how much money they will make by putting money into mutual funds. In general, there are two ways to put money into mutual funds: lumpsum or every month.
This calculator will help you identify the returns of both types of investments. Simply input the information and get accurate returns on your investment.
Advantages of Mutual fund investment?
Here are some of the good things about mutual funds.
The best thing about investing in a Mutual Fund is that the investor can get their money back at any time.
Diversification lowers the risk of building a portfolio, which lowers an investor's risk even more. Mutual funds are made up of many different securities, so investors' interests are protected even if one of the securities goes down in value.
A person who has never invested before might not know much about how and where to invest. Mutual funds are run and managed by experts. The experts pool the money from the investors and put it in different securities, which makes money for the investors.
The expert keeps an eye on when it's time to leave and enter and takes care of any problems that come up. The only thing you have to do is invest, and you can be sure that the rest will be taken care of by experts in this field.
Having the freedom to invest in smaller amounts Mutual funds have a lot of benefits, but the most important one is that they are flexible. To put money into a Mutual Fund, investors don't have to put in a lot of money. Investments can be made based on how much cash is coming in.
You can sign up for a Systematic Investment Plan if you get paid every month (SIP). With SIP, a fixed amount is invested either once a month or once every three months, depending on your budget and how convenient it is.
Mutual funds are easy to buy and sell.
Mutual funds are easy to buy and invest in, and you can do so from anywhere in the world.
Plans for all kinds of financial objectives
The best thing about the Mutual Fund is that you can put in as little as Rs. 500. And the maximum amount an investor can put in is up to them.
Before putting money into Mutual Funds, the only thing people should think about is their income, expenses, willingness to take risks, and investment goals.
With the help of SEBI rules, all of a Mutual Fund's products are now labelled. This means that there will be a colour code for each Mutual Fund scheme. This helps an investor figure out how risky his investment is. This makes the whole investment process clear and safe.
This color-coding system uses three different colours to show different levels of risk-
Blue means the risk is low.
Yellow means there is some risk, and brown means there is a lot of risk.
Investors are also free to check the qualifications of the fund manager, as well as his years of experience, the amount of money under management (AUM), and the solvency of the fund house.
In a Mutual Fund, money from many different investors is pooled together and then used to buy securities. But these funds are invested in assets, which helps save on transaction and other costs compared to a single transaction. Investors pay less to put money into Mutual Funds because of the savings.
Also, the Asset Management Services fee cost is lowered, and the same amount is split among all of the fund's investors.
Best way to save on taxes
Mutual funds offer the best ways to save money on taxes. Section 80C of the Income Tax Act gives ELSS Mutual Funds a tax break of Rs. 1.5 lakh per year.
What is a Mutual Fund calculator how does work?
While mutual fund returns may not be fixed every year, we can calculate the returns to an approximation. You can use Zebu's free mutual fund return calculator to find out how much you can expect to get back after investing in mutual funds over a set period of time.
Type in the amount you've invested, the rate of return you expect, and the number of years you've been investing. Your investment's value at the end of the time period you choose will be shown within second