About this mutual fund calculator
A mutual fund pools money from many investors and invests it across stocks, bonds or other assets. Your return depends on the fund's performance, which is usually expressed as an annualised percentage. This calculator estimates what a one-time investment in a mutual fund could grow to over a chosen period.
Enter the amount you plan to invest, the expected annual return and the number of years. The tool compounds the principal annually and shows the future value, the amount invested and the estimated gains. It is a quick way to sanity-check a goal before you commit money.
The estimate assumes a constant return and reinvestment of gains. Actual mutual fund returns vary, and there are expense ratios, exit loads and taxes to account for. Past performance is not a reliable guide to future results, so use this as a planning aid rather than a prediction.
Compare the result with a SIP for the same goal to decide which route suits you better. If you are investing for a long horizon, equity funds have historically delivered higher returns but with more volatility. Always read the scheme document and consider speaking to a financial adviser.