Mutual Fund Return Calculators: An Important Online Tool for Investors

One of the most common types of investments that every investor most often first starts their financial transactions with are mutual funds. These are known to be extremely lucrative options that are available in the vast and varied world of the Indian Stock Market. Depending on the condition of the market, you may profit from your investment in mutual funds or you may also face losses.

So, as an investor wouldn’t you want to know whether your investments are actually producing the desired results and by how much? Investments that are made for periods of three or even five years will obviously give you a return amount that is large. Simple arithmetic for the same is not something that is enough to calculate these figures. The investment returns are volatile and usually the results will be compounded on a yearly basis.

One of the most widely used online tools that investors make use of while making their investments is the mutual funds returns calculator. These tools can easily be found online and are one of the best methods by which the returns of a certain fund can be calculated, which are of a specific period.

There are many different types of mutual funds that a person can invest in. The two basic categories are open-ended funds and closed-ended funds. While open-ended funds refer to those shares which can be issued and redeemed at any time, closed-ended funds are the exact opposite.

The mutual funds returns calculator is applicable to all the different types of schemes that an investor may invest in. When a person makes use of this online tool they have to enter in certain key information details about their investment.

 Some of the different categories include the investment mode (SIP/lump sum/SWP/STP/etc.), the category (equity/hybrid/fixed income/regular/gilt/etc.), scheme name, inception date, instalment amount (INR) and frequency. One the investor has all these details entered in the online tool, they can click on the calculate button and the tool will compute the amount of returns within a few minutes. Finding out how much this amount is very important as it can help investors in their financial planning and goal setting.