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The Importance of Mutual Fund Calculators in Investment Planning

Worried about the future? Seeing how companies of mammoth sizes are laying off tens of thousands of their employees at the drop of a hat, many worry about living or surviving on their savings until they find a new job.

But the worse thing is that even those savings will only help you for a short time. You are losing money if you keep them in a savings account, as it does not account for the yearly inflation rate, which means that the money you have today might be way less next year or even later than that.

Mutual funds help you bypass this curve and grow your money at a similar rate as inflation or sometimes even faster. To do that, you should use the tools readily available on the internet for free, like a mutual fund calculator.

What are Mutual Funds?

Mutual funds are a form of investment where you can either deposit a lump sum of money or periodic investment of smaller sums of money into equity, debt, and hybrid securities like stocks, bonds, and short-term debt.

They are a relatively safe investment but are still subject to market risk, so you must select one that fits your needs and risk appetite.

What are the best mutual funds in India?

You should consider a few criteria when looking for the best mutual fund. The first is their Year on year performance, the second is the minimum investment amount, and the third is whether the risk matches your risk appetite.

These are the best-performing mutual funds in India right now for Equity and feature an incredible 3-year return percentage of over 40% each.

  1. Quant Small Cap Fund – Direct Plan-Growth
  2. Axis Small Cap Fund Direct-Growth
  3. Nippon India Small Cap Fund Direct-Growth

The following are the best-performing mutual funds for Debt securities, featuring a high 8% nearly 9% 3-year return.

  1. DSP Government Securities Direct Plan-Growth
  2. Bandhan Government Securities Investment Plan Direct-Growth
  3. SBI Magnum Gilt Fund Direct-Growth

The following are the best-performing mutual funds for the hybrid type and feature a high 3-year return at over 30% for the first two and nearly 29% for the third one.

  1. Quant Multi Asset Fund Direct-Growth
  2. Quant Absolute Fund Direct-Growth
  3. ICICI Prudential Equity & Debt Fund Direct-Growth

How to calculate the returns?

Compared to a few years ago, mutual funds have become a lot more accessible, which has allowed first-time or unacquainted investors to start putting their money and investing into it. Nowadays, several companies offer assistance and tools to let the uninitiated figure out the estimated returns on their investments.

Using tools like SIP Interest Calculator and mutual funds calculators is now as simple as finding the best fund for you and inputting the lump sum or periodic investment amount and the tenure you wish to invest into it. This will give you an accurate result allowing you to invest quickly and in an informed manner.

Conclusion

Thus, tools like mutual fund calculators must be used to make informed decisions about our financial future. It makes it easy and convenient to find the returns, provides graphs showing the performance, and allows you to experiment using it to determine the best tenure and investment sum.

Using these tools, even I, a novice in investment, could make sound investment decisions into the best mutual funds and get returns from them. I am glad that I used Bajaj Finserv as my investment partner to invest in a few of these funds, as it made it very easy for a beginner like me to invest and bear the fruits of it.

 

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