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All you need to know about mutual fund calculators

Use mutual fund tools & calculators to calculate and plan your investments, take calculative measures and get complete mutual fund investment benefits.

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All you need to know about mutual fund calculators

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  1. All you need to know about Mutual fund calculators

  2. Have you ever thought about it? Yes, we have all invested in equity funds that are present in the market today and thus, we are sure about the benefits that come by over a period of time. But are we really sure about the absolute returns and the annualised returns? Do we know how your money is being invested and how your returns would be? Here’s a simple way to understand the returns you would have on your investment. One is the absolute returns and the other is the annualised returns. Before we even go and explain how to calculate the returns you have on your investment, we need to know what a mutual fund is

  3. What is a Mutual Fund? A mutual fund is a method to invest in different types of securities with a pool of people. So, you can invest in a set of stocks, bonds, and many other investment points as a small investor. You would get a proportional share of the company’s gains or losses.

  4. Absolute Returns It is the simple different in your investment in terms of percentage. Ex: - Let’s say the current investment you have made is Rs 6,00,000 and the invested amount was Rs, 4,00,000/- in that case, your absolute return would be 6,00,000- 4,00,000 divided by 4,00,000. This is equal to 50%.  The ROI is independent on the date of investment.  Preferred method when you are looking at an investment period of less than 1 year.  Does not give you accurate data if you are looking at longer investments.

  5. Annualised returns This is an average rate over a long term period. In case you are investing over a period of 3 years for example, it would give you a rate of return over a steady rate or in other words, a compounded return value. This is also called CAGR or compound annual growth rate. CAGR is <(Current investment value/Initial investment value) ^ (1/Number of years)> - 1 This would give you a total with a compounded rate.

  6. Important parameters  Investment mode : Is it an SIP, a lumpsum plan or even an annual returns plan  Inception date to calculate the compounded interest  Benchmark that was provided so that you can do a quick comparison  Instalment amounts  Frequency of instalments  Current investment value With these parameters, you would be able to get a clear idea on the returns you have on your mutual funds. It would be a great idea to look through your current investments and understand the current investment value.

  7. Use these tools to calculate & plan your investments, take calculative measures and get complete mutual fund investment benefits http://www.idfcmf.com/tools- calculators.aspx Thank you 

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