This calculator is also known as a mutual fund lumpsum calculator. If you are thinking of making a lumpsum investment, then calculate the future value of wealth using a lumpsum calculator. For instance, if you are likely to invest Rs 1 lakh rupees for 60 years at 15%, then as per the lumpsum calculator, your savings will be 48.3 Cr approx. after 60 years.
You are required is to enter the SIP amount, SIP Duration, and SIP frequency to calculate the maturity amount for an estimated return of investment. Select the nature of investment, amount, rate of return, and investment duration. Suppose the nature of investment is SIP, choose the amount, time, expected return. The mutual fund will let you know expected return on maturity.
FV is Future Value
PV is Present Value
N Duration of the investment
R Estimated Rate of Return
For example : Suppose you decided to make one-time investment like Rs 1 lakh for 10 years at 8% rate of interest, using this formula, you can get the results!
FV = 1,00,000 (1+8/100) ^10
FV = Rs 2,15,892.5.
So, the future value of the mutual fund investment after 10 years at an estimated return of 8% is Rs 2,15,892.5
Now returns on mutual funds are calculated in two ways, one in terms of Absolute return and the other one is Compound Annual Growth Rate.
The mutual fund is a financial scheme that uses money of multiple investors for investing in a collected corpus like short term money market instruments, assets, securities, or combination of investments. It is done in accordance with the investment objectives as disclosed in the offer document.