In the younger days, you may have got away with the pressure of money management. But that may not be the case as you grow older in your life. So, what is the tool that can help you manage the money amid growing expenses in today's times? I guess you would think of depositing the money in a bank account. But that will yield you an interest of 4%-6% per annum, with the majority of the banks providing the lower range only.
Looking around at the investment options, you can bet on mutual funds even though the risk factor is there. But with a team of experts behind your mutual fund calculator you can be more or less be assured of a balanced portfolio. These experts ensure appropriate asset allocation to offset the risk element. So, how can you check the anticipated growth of your invested capital in mutual funds? Well, the answer lies in the mutual funds investment calculator.
Mutual Funds Investment Calculator:
Mutual funds investment calculators are broadly classified into four types-
- SIP Calculator
- Return Calculator
- SWP Calculator
- STP Calculator
SIP Calculator- Systematic Investment Plan (SIP) allows you to invest in mutual funds on a monthly, quarterly or annual basis. The beauty of SIP is the fact that you can enjoy the diversification of your investment at a monthly payment amount of as low as ₹ 500. With the SIP calculator, you can check the value of your investment each year until the time of redemption. Just enter the amount of monthly, quarterly or annual investment along with the time and annualized yield of the fund to get a sight of the expected investment value.
Return Calculator- The return calculator shows the performance of the mutual fund scheme you have opted for. All you need is to select the fund house, its scheme and enter the dates from which you want to check the return. The moment you do so, the returns of the chosen mutual fund scheme flash out before you. The results will help you make up your mind on whether the scheme is a fit for you or not. Remember, mutual funds are the best bet for long-term investments.
If you are selecting a mutual funds investment based on spectacular performance in the short-term can make you sit on the piles of losses. Therefore, the selection of the mutual fund scheme should be based on the returns provided in the long-term, say in 5-10 years.
SWP Calculator- Systematic Withdrawal Plan (SWP) is a type of mutual fund investment that allows you to withdraw money from the fund at pre-determined intervals. It is a simple tool to generate regular income by withdrawing against your mutual fund deposits. For calculating the returns via SWP calculator, you need to enter the following details
- Name of Asset Management Company (AMC)
- Name of the Mutual Fund Scheme
- Lump-sum amount you want to invest in SWP
- Date of lump-sum investment
- Withdrawal amount date
- Initial investment amount
- Date at which you want to know the final value of your SWP investment
- Start and end dates of SWP investment
STP Calculator- Systematic Transfer Plan (STP) refers to the process of transferring a specific amount of money from one scheme to another of the AMC. Basically, the transfer is made from a debt to equity scheme to act against the adverse market movements. STP calculator will demonstrate the amount of money invested in installments and the amount transferred. You are required to do the following things.
- Enter the name of AMC
- Enter the mutual fund scheme you wish to transfer from and to
- Choose the initial investment option
- Select the time period
- Enter the initial amount of investment
- Enter the initial investment date
- Enter the amount of STP transfer
- Select the time interval of your new scheme in STP
- Select the frequency from daily, weekly, fortnightly, monthly, quarterly options
- Enter the start and end date of STP
Lump Sum Calculator:
It is a tool used to calculate the future value of your lump sum invested. All you require is to enter the investment amount, annualized yield and the time period in the lump sum calculator, which will then show the estimated future value of your investment.
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