Mutual Fund Returns Calculator

Investment Amount
Return rate (p.a)
Time Period (Y)

All about the Mutual Fund Calculator

A mutual fund is a type of pooled corpus that raises capital from investors with similar investment objectives and is managed by a professional fund manager. These funds are further invested by the fund manager as per the individual investors’ needs in a particular type of investment instrument to maximise the returns and minimise the risks.

In the simplest terms, a mutual fund is a financial intermediary established to manage the money gathered from different types of investors professionally. People who invest in these funds can benefit from the growth in stocks or bonds at substantially cheaper financial trading costs by investing their funds through a pooled investment vehicle.

Mutual funds offer many benefits, such as professional management of investments in stocks, bonds, debentures, etc., in a cost-effective and convenient manner.

To understand and evaluate the returns you can potentially get from mutual funds you can use Kuvera’s Mutual Fund Calculators or Mutual Fund Growth Calculators. It will ease off the financial planning burden from you and enable you to understand mutual fund returns easily. Let’s dive into all the crucial information about Kuvera’s Mutual Fund Calculator.

Why Should One Invest In Mutual Funds?

There are multiple reasons to invest in Mutual Funds, below are some of the key reasons to invest in mutual funds:

Simplified Process

Investing in mutual funds is now simple and straightforward thanks to the internet. One can use zero commission online platforms like Kuvera to purchase direct schemes of mutual funds. Further, Kuvera also provides you with critical statistics in relation to the performance of the mutual fund in order to aid you in selecting which mutual fund to invest in.

Professional Management

One of the biggest benefits of investing in mutual funds is that they are managed by experienced fund managers whose day-to-day duties include doing deep analysis of the market. Before choosing to buy and sell a certain stock or security of a company, fund managers consult with a team of professionals who thoroughly investigate the business of the company. The mutual fund is appealing and offers a greater chance of receiving big returns thanks to its professional management.

Lower cost

Professional management of money typically is a costly affair because of the cost associated with hiring professionals to manage the money. However, this is not the case with mutual funds. Mutual funds pool the money of many participants. By dividing the asset management costs among the investors, mutual fund houses make the investment in mutual funds an affordable investment option.


The majority of conventional investments, such as PPFs and fixed deposits, have a lock-in period during which one cannot withdraw his investment. Mutual funds typically do not have this requirement of lock-in periods. You can easily redeem your investment in mutual funds based on your needs. Tax-saving mutual funds, also known as ELSS funds, are the only type of mutual funds that have a mandatory lock-in period. They have a three-year lock-in period. However, historical data has shown that the longer you keep your money invested, the better returns you may expect from your investment.


You have the benefit of diversifying your investments through mutual funds since they invest the money pooled in from the investors in the shares and other securities of multiple companies. You can spread your risk in this manner and increase the return on your investment.

Financial Goal-Oriented Funds

Mutual funds are systematically categorised into different types as per the financial goal. It becomes easy for the investors to invest in a mutual fund as per their choice. ELSS or tax-saving mutual funds help in saving tax for the investors. Index funds replicate the investment portfolio of the index they are following. Sector-specific mutual funds invest in a particular industry. All these are examples of mutual funds which are oriented toward a specific investment goal.

High Return Potential

Mutual funds offer the platform to strategically invest your money in the variety of market-linked financial instruments which have outperformed other asset classes for many years especially index mutual funds tracking Nifty and Sensex. They have given better returns than bank deposits or any other fixed income offering, with returns as much as 14% CAGR in the past decade.

Regulation and Transparency

Mutual fund houses come under the regulation of SEBI (Securities Exchange Board of India). It is mandatory by law for the mutual fund houses to make necessary disclosures. The NAV (Net Asset Value) of the mutual fund is updated daily and is available to view for all. This makes the performance of the mutual fund very transparent, making it easy for the investor to track its progress and get daily updates on its performance.

How To Evaluate Mutual Fund Returns?

Let us understand how we can evaluate the performance of mutual funds:

  • Point-to-Point or Absolute Return

This method aids in evaluating straightforward returns on the initial investment. Investors must set the initial and final Net Asset Values of the particular mutual fund unit they have invested in. The holding duration almost has no bearing on calculating the point-to-point return. This indicates that if you start with a NAV of Rs. 100 and it rises to Rs. 200 after 36 months, your absolute return will be 100%.

When utilising this method to calculate returns, you must use the following formula:
(Present NAV - Initial NAV) / Initial NAV x 100 yields the absolute return.
This formula can be used in an Excel spreadsheet. You can then begin the calculations. This formula is used for the computation of the returns.

  • CAGR (Compounded Annual Growth Rate)

The CAGR is a straightforward method of return computation when the length of your mutual fund investment is greater than 12 months. It shows what would have been the growth rate of your investment if it would have grown linearly. Actual returns are never linear though. Because of this, CAGR is used to express the average annual growth rate, which reduces the volatility of returns over a certain period of time.

You will use the following formula when utilising CAGR to calculate profits on your mutual fund investment:

(1 / years) ((Ending Value / Beginning Value)) - 1 * 100

  • Simple Annualized Return

If you have returns for a period shorter than 12 months you can extrapolate them to have annualized returns. This approach is called effective annualized return.

What Is Kuvera’s Mutual Fund Calculator?

An online application called a Mutual Fund Calculator calculates the potential gain from an investment in the stock market. Simple inputs are needed, such as the amount invested or goal amount, the estimated return on capital, the investment period, and the step-up rate. Kuvera’s Mutual Fund Interest Calculator utilises the user's inputs to calculate results.

The most critical strategy before making any mutual fund investment involves determining the investment amount, investment objective, estimated return, time horizon, and step-up amount. It is important to evaluate and compare the growth of your investment from time to time. Kuvera’s Mutual Fund Interest Calculator uses the investment period, size, and type of fund to calculate the returns on the amount one wants to invest.

Kuvera’s mutual fund calculator requires the monthly contribution amount, the number of years the investment will last, and the estimated SIP return percentage. Mutual fund SIP calculators use the compound interest formula to calculate prospective returns.

How Does Kuvera’s Mutual Fund Calculator Help You?

Using Kuvera’s Mutual Fund Interest Calculator has several advantages. Some of these merits are listed below:

Easy-to-use interface

One of the main benefits of using a Mutual Fund Investment Calculator is that it removes the complications associated with calculating returns manually.

Another way to describe this is that you won't need to exert any extra effort. Filling up the fields for amount, expected return, and maturity time is all you have to do. You will get the result immediately. A Mutual Fund Interest Calculator gives you a general indication of the returns or capital appreciation you may expect.

Aids planning

Using a Mutual Fund Investment Calculator aids financial planning. You can make investment decisions after evaluating how your current mutual funds have performed.

Accurate calculations

An investment is associated with calculated risk. With mutual fund calculators, you receive accurate information on the return offered by your mutual fund investment. The labor-intensive and error-prone manual calculation procedure is replaced with an automation system backed by a fixed formula system.

With mutual fund calculators, you get accurate information on the returns offered by your mutual fund investment. The labour-intensive and error-prone manual calculation procedure is replaced with an automated calculator backed by a fixed formula system. This method is quicker and hassle-free. You don't need to consider several computations to determine various amounts.

Mutual Fund Calculation Formula

Absolute return, annualised returns, and compound annual growth rate (CAGR) are used by Kuvera's Mutual Fund Calculator to compute returns on SIPs. CAGR, however, is the best way to predict SIP returns.

The CAGR measures how much an investment grows on average every year throughout the investment period. The CAGR formula is as follows:

[(ending value/beginning value) ^ (1/number-of-years)] - 1


- The net asset value at the moment of withdrawal is the ending value.

- The net asset value at the investing time is the beginning value.

- The investment duration is the specified number of months or years.

So what are you waiting for? Plan your financial goals and start investing on Kuvera. Discover 5000+ Direct Plans and Fixed Deposits from banks and NBFCs. We also make it super convenient to import and track your external investments in MFs, Stocks, US Stocks, Gold and EPF - all at one place.

Mutual Fund Related Documents:

The most crucial instruction while investing in market-related schemes is to read all the scheme-related material before investing carefully. The various documents associated with investing in a mutual fund SIP include the following:

1. Scheme Information Document (SID): SID provides detailed information on the scheme, such as minimum investment amount, exit load, SIP details, risk level, and so on.

2. Statement of Additional Information (SAI): SAI contains additional disclosures in relation to the mutual fund scheme, it can be seen as a supplement to SID.

3. Key Information Memorandum (KIM): KIM provides a condensed version of the SID and SAI factsheets.


What is a Mutual Fund Calculator?
How much return will I get from mutual funds?
Do all mutual funds offer SIP facility?
Is investment in mutual funds tax-exempt under Section 80C of the Income Tax Act?
What is the minimum amount which one can invest in mutual funds?
In case of investment through SIP, is it mandatory to invest every month?
Does Kuvera charge any commission or brokerage for mutual fund investments?