Mutual funds help investors streamline their investment efforts and even facilitate consistency and discipline through SIP. The country is taking a liking to how they can gain exposure to a diverse portfolio created by an expert. India’s mutual fund industry grew over 2x between 2016-2021. Following are the returns and the investment value calculated using the ET Money mutual fund calculator for direct vs regular plans: Preferably, you’d want to go with a direct plan when choosing mutual fund schemes in India because you’ll end up with relatively higher returns.įor instance, let’s assume that the difference in the expense ratio between the direct and regular plan of a scheme is 0.75%. Since a direct plan doesn’t involve an intermediary, you don’t pay any commission, which reduces the expense ratio and translates to relatively higher returns. The fund house will deduct their commission from your returns when you invest through the regular mode (i.e., through a broker, advisor, or distributor). It’s also worth noting that the based on the scheme you choose and whether you choose a direct or regular plan. If you are keen to learn more about this, click on XIRR and CAGR to know more. XIRR helps you calculate a single return percent for all cash flows and is, therefore, relevant to SIPs. When there are multiple cash flows (like in the case of SIP), you need to use XIRR because the returns for each cash flow will differ. The reason is that CAGR works only for calculating returns on a point-to-point basis.

You should know two things about both formulas.įirst, the formula used in the lump sum formula is CAGR (compound annual growth rate) while the one used in the SIP formula is XIRR (Extended Internal Rate of Return). Note: For daily/weekly SIPs, adjust i and n accordingly. If you happen to be interested in any of those funds, use the “Invest Now” button, and invest in Mutual Funds using the SIP or lump sum investment route in minutes. You’ll also see some of the best mutual funds at the right of the calculator based on your investment strategy. On the right, you’ll get an overview of the total investment, total gains, and the future value of your investment.Īs you keep changing any variable in the MF return calculator, the chart at the bottom and the overview will change automatically. You’ll now see your investment’s growth in the form of a bar chart over several time frames.

If you prefer, you also have the option to enter a custom rate by selecting Custom from the drop-down menu.

For instance, aggressive strategies typically deliver higher returns than conservative strategies because they come with greater risk. Step 2: Enter the amount you wish to invest (or the monthly contribution if you chose SIP), the number of years you intend to hold the investment for (or continue SIP contributions), and the investment strategy.Ĭhoosing the investment strategy on the calculator eliminates the need to estimate a rate of return because the algorithm does it based on the strategy’s risk profile. Step 1: Choose between a lump sum or SIP calculation from the top-right corner. This is why the ET Money calculator has a streamlined design that helps investors with mutual fund return calculation in two easy steps. For new investors trying to use any other Mutual Fund returns calculator in India, this can be quite overwhelming. When you use a mutual fund calculator online, you’re faced with a range of questions. The ET Money mutual fund calculator is a two-step process that makes mutual fund return calculation a breeze.

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