A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. The fund is managed by a professional fund manager, who make investment decisions on behalf of the investors.
A Mutual Fund Calculator is a helpful financial tool for investors to estimate potential returns on their mutual funds investment. Users can input details such as the investment amount, expected return rate, and duration to get an idea of the maturity amount. This tool proves useful for financial planning by providing valuable insights.
The formula for calculating the future value (FV) of a lump sum investment is given by:
Future Value = A = P (1 + r/n) ^ nt
Where:
A= Estimated return
P=Present value of the invested amount
r=Rate of return
t=Duration of investment
n=Number of compounded interests in a year
2. For Systematic Investment Plan(SIP):
FV = P [(1+i)^n-1]*(1+i)/i
Where:
N = The investment duration in months
i = Expected rate of return
P = The amount you invest monthly through SIP
FV = The future value of the investment
There are several advantages of using MF calculator.
