Mutual Fund Calculator
Calculate returns on mutual fund investments with SIP or lump sum. See future value, CAGR, and impact of expense ratios.
Choose between regular monthly investments or one-time investment
Starting amount or lump sum investment
Amount invested every month (for SIP)
Expected yearly returns (equity funds: 10-15%, debt funds: 6-8%)
How long you plan to stay invested
Annual fund management fee (typically 0.5-2%)
Fee charged if you exit before a certain period (optional)
What is a mutual fund and how does it work?
A mutual fund pools money from many investors to buy a diversified portfolio of stocks, bonds, or other securities. Professional fund managers make investment decisions. You own shares of the fund proportional to your investment. Mutual funds offer instant diversification, professional management, and are ideal for beginner investors starting with $500-$3,000.
What is the difference between SIP and lump sum investment?
SIP (Systematic Investment Plan) invests a fixed amount regularly (monthly), averaging out market ups and downs (rupee-cost averaging). Lump sum invests all money at once, which works best when markets are low. SIP reduces timing risk and is better for salaried individuals. Lump sum can yield higher returns if invested at the right time but carries more risk.
What are mutual fund expense ratios and loads?
Expense ratio is the annual fee (typically 0.5-2%) that covers fund management, administration, and marketing. It's deducted from fund returns automatically. Load is a sales commission - front-end load (charged when buying) or back-end load (when selling). No-load funds have no sales charges. Lower expenses mean higher returns for you.
How do I choose between index funds and actively managed funds?
Index funds track a market index (S&P 500) with low fees (0.03-0.20%) and match market returns. Actively managed funds try to beat the market with higher fees (0.5-2%) but 80% underperform indexes long-term. For most investors, low-cost index funds are better. Consider active funds only for specific strategies or emerging markets.