Mutual Fund Calculator: In this era of Digital India, it is quite easy to start investing in mutual funds. In today’s time, there are many such online SEBI registered platforms, through whose app you can start investing by completing KYC (Know Your Customer) in a few minutes.
Mutual Fund Calculator: Investing in mutual funds is quite simple and easy in today’s time. Mutual Funds are a good option if you have the ability to take market risk and want to invest in lumpsum with a long-term perspective. In the long term, investors in mutual funds have tremendous benefits of compounding. Experts believe that investing in mutual fund schemes from a long-term perspective in the initial days of the job helps in achieving financial goals. Talking about the returns of mutual fund schemes, the long-term average return of most of the schemes has been 12% per annum. In this era of Digital India, it is quite easy to start investing in Mutual Funds. There are many such online SEBI registered platforms, through whose app one can start investing by completing KYC (Know Your Customer) in a few minutes.
15 lakh fund on investment of 5 lakh
According to the Mutual Fund Calculator, if investors invest a lump sum of Rs 5 lakh and the average return is 12 percent annually, then in the next 10 years, a fund of about Rs 15.52 lakh can be easily formed. Thus, the estimated return on investment would be around Rs 10.52 lakh. Think of it in this way that if a person invests Rs 5 lakh in mutual funds at the age of 25, then at the age of 35, he will have Rs 15 lakh. However, keep in mind that this investment is subject to market risks. As the average return decreases or increases, the projected fund may go up or down.
How to choose a fund for yourself?
Amit Kumar Nigam, Director, BPN Fincap, says that starting investments early in your career can lead to substantial wealth creation through compounding. In the initial days, if you start investing by looking at your small and big financial goals like travel, car, buying a house, then achieving it is also easy. For example, if someone invests a lump sum in mutual funds at the age of 25, then he will create a good corpus in the next 10 or 15 years.
The corporation says that the ability to take market risks is high at a young age and long time for investment is available. Along with this, the investor also gets enough time to average the investment. If we talk about mutual fund schemes from a long term perspective, good returns can be achieved from large and midcap, flexicap and multicap funds. They believe that at least two of these schemes can be kept in the portfolio if one invests a lump sum for 25 years or so. This keeps the portfolio diversified. However, mutual funds are diversified in their own right.
(Disclaimer: Here is a calculation of mutual funds. This is not an investment advice. Investing in mutual funds is subject to market risks. Before making an investment decision, please consult your financial advisor.)
