Let’s have a look at this context to learn about the use of the Mutual Fund Calculator, different types of calculators calculating MF, mutual fund return calculator, mutual fund growth calculator, mutual fund cost basis calculator, how to calculate alpha in mutual funds, how to calculate the standard deviation of mutual fund in excel, etc
Choosing between active and passive management, where to buy funds, knowing costs, and keeping to a strategy are all important considerations when investing in mutual funds.
Investors in mutual funds own stock in a corporation that buys stock in other companies (or in bonds, or other securities). Investors in mutual funds don’t own stock in the firms the fund buys, but they do share equally in the profits and losses of the fund’s total assets – hence the “mutual” in mutual funds.
A brief on Mutual Fund
A mutual fund is a type of investment in which investors pool their money to buy stocks, bonds, and other assets. A mutual fund tries to build a more diverse portfolio than an individual investor could. Professional fund managers acquire securities for you in mutual funds.
What is the use of a Mutual Fund Calculator?
It helps you in determining the return from the investment made in MF. The maturity value is also calculated in case you invest through SIP or lumpsum amount.
If you want to know how much amount you will receive at the time of maturity then the MF calculator will provide you with a lump sum figure and after this, you can start investing money in MF. It also helps you in budgeting for expenses and accomplishing the goals which you are not able to attain due to lack of funds.
Enter the amount for SIP, tenure, the frequency, estimated return rate to get the maturity amount.
There are numerous calculators available to know the returns, calculating the cost before starting to invest.
- Dave Ramsey Mutual Fund Calculator
- Mutual Fund SIP Calculator
- Nerdwallet Mutual Fund Calculator
- SBI Mutual Fund Calculator
- Bank of India Mutual Fund Calculator
- ICICI Prudential Mutual Fund Return Calculator
- Mutual Fund Calculator Vanguard
Select anyone from the above listed. Once you enter the sites you will directly enter the homepage where you will see the empty boxes:
- Nature of investment: SIP or Lumpsum
- Amount
- Return Rate
- Tenure
- Frequency ( if selected SIP)
The work of Mutual Fund Calculator:
There are 2 types of investment:
- Lumpsum
- SIP
Lump-Sum or One-Time Investment
Amount = 1,00,000
Tenure = 10 years
Rate of Return = 10% p.a.
The formula for Mutual Fund Compound Interest:
Future Value = Present Value (1 + r/100)^n
FV = Rs 2,59,374
SIP Investment
Amount = 1,00,000
Tenure = 3 years
Frequency = Monthly
Expected rate of return = 10%
Formula:
FV = P [(1+i)^n-1]*(1+i)/i
FV = Rs 47,78,182.
How can you choose between the hundreds of mutual funds on the market? Examining the future and the costs that could eat into long-term returns is an excellent approach to narrow down your options. This is where a mutual fund calculator can come in handy.
What is the best way to use the mutual fund calculator?
- Set a starting investment amount.
- Next, if you plan to make regular new investments (as experts recommend), select an annual contribution. Many mutual funds have a minimum initial commitment, but if you make monthly installments, your broker may waive that requirement.
- Add the number of years you intend to keep your money in the fund. The higher the prospective rewards, the longer the time horizon.
- Enter the mutual fund’s expected yearly return. (You can look up the fund’s past performance on the internet, but keep in mind that past success is no guarantee of future outcomes.)
- Finally, add the mutual fund’s annual expenses, also known as the cost ratio. Lower fees imply more of your money will stay invested for long-term growth potential.
Mutual Fund Calculator USA
The citizens can utilize the capitalgroup.com to calculate the maturity amount. Enter the starting amount, investing years, additional contributions ( per month, per quarter or per year) and the hypothetical annual rate of return (compounded annually, quarterly, monthly, or daily) and get the maturity amount.
Calculating Cost Basis Of Mutual Funds Spreadsheet
The calculation on a cost basis is similar to stocks:
- Purchase Price + Transaction Cost. NAV is the purchase price at the time shares were acquired.
How to Calculate Alpha in Mutual Funds?
End Price plus DPS minus Start Price divided by Start Price
How To Calculate Cagr Of Mutual Fund?
CAGR= (EV/BV)^(1/n)-1
CAGR – Compounded Annual Growth Rate
EV – End Value
BV – Starting Value
How to Calculate Standard Deviation of Mutual Fund
In order to learn standard deviation on a MF,
- Just add the return rates for the tenure.
- Then divide the total in order to get the average returns.
- Next, take the individual data and proceed to subtract the average so that it can find i.e. between fact and the average.
- Now, square each number then add all.
- After that, divide the result by the cumulative number minus 1.
The SD or standard deviation- the square root of the number.
This way one can easily calculate the investment made on MF.