A mutual fund returns calculator projects how a lumpsum or monthly SIP investment could grow over time at a given expected annual return.
About this calculator
A mutual fund returns calculator projects how a lumpsum or monthly SIP investment could grow over time at a given expected annual return. Enter the amount, return rate, and investment horizon to see the estimated corpus.
Mutual fund returns are not guaranteed. This calculator uses compound interest to project growth, which gives a reasonable planning estimate. Actual returns depend on market performance, fund selection, and expense ratios.
Common uses
- Estimate the future value of a lumpsum investment in an equity mutual fund
- See how monthly SIP contributions compound over 10, 15, or 20 years
- Compare expected corpus at different return assumptions (8%, 10%, 12%)
- Plan how much to invest monthly to reach a specific retirement target
- Understand how expense ratio affects net returns over a long horizon
Frequently asked questions
What return rate should I use for equity mutual funds?
Indian equity mutual funds have historically delivered 10-14% CAGR over long periods, though past performance does not guarantee future returns. For conservative planning, use 10-11%. For aggressive scenarios, use 12-13%. Always compare a low-return scenario too.
How does compounding work in mutual funds?
Mutual fund returns compound when gains are reinvested automatically. In a growth option, the NAV rises over time and your units appreciate. Over 20 years at 12% CAGR, ₹1 lakh grows to about ₹9.6 lakh — each year's gains generate returns in subsequent years.
What is the difference between SIP and lumpsum investing in mutual funds?
A lumpsum puts all money in at once, so returns depend heavily on market timing. SIP invests a fixed amount monthly, averaging the cost over market cycles (rupee-cost averaging). SIP suits regular income earners and reduces timing risk. Lumpsum suits investors with a large amount ready to deploy during market dips.
Do mutual fund returns shown here account for taxes?
No. This calculator shows pre-tax returns. Equity fund gains held over one year are taxed as long-term capital gains (LTCG) at 12.5% above ₹1.25 lakh per year (as of 2024). Debt fund gains are taxed per your income slab. Consult a tax advisor for your specific situation.