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Too many choices tend to blur our focus making it difficult to decide. That applies to almost every aspect of life, especially Mutual Funds. The sheer number of options, goal based plans, types of funds, AMCs, etc may make MFs seem a little intimidating and confusing. It helps to break things down and then check if it makes sense to you. Our Mutual Fund SIP Calculator helps you do just that!

When you set out to invest, you need to zero in on a couple of key considerations depending on your priority and circumstance. For example, ‘is wealth creation more important to you than security, or vice-versa?’ ‘How important is liquidity to you?’ ‘What’s your risk-appetite?’ ‘Are you more comfortable thinking monthly or lump sum?’ and so on and so forth. Once, you have a better idea of what you want, all you have to check for is whether the estimates thrown up by the calculator fit your needs.

Talking about MF calculators, there are two basic types - SIP Return Calculator and Accumulation Calculator. Let’s examine how these help you gain clarity, using a few examples.

## 1. When the financial goal is to generate wealth for a period of 10 years

Suppose your financial goal is to create wealth. In order to achieve your goals, you wish to build up a corpus amount of ₹ 50 lakhs within 10 years at an expected return of 8% p.a. So after entering the details in your SIP Calculator, the results will go like this way:

### Inputs in your SIP Return Calculator

Corpus Required : ₹50,00,000

Time period: 10 years

Expected Return: 8% p.a.

### Results Obtained

An amount of ₹ 27,581/- per month is required to be invested by you till 10 years for building an exact corpus of ₹ 50 lakhs.

## 2. Where financial goal is to go for an international vacation after 12 years

22-year-old Mr. Arpit Singh is a working professional in an MNC in Gurgaon has just started his career. His goal is to go to France after 12 years. Keeping this objective in mind, he uses the Accumulation Calculator in order to ascertain the value of the final amount he will get if he plans to start with a monthly SIP of ₹ 500. So, after entering the following details in the calculator, the results will go like this way:

### Inputs in your Mutual Fund Return Calculator:

Monthly SIP: ₹ 500

Time period: 12 years

Expected Return: 9%

### Results Obtained

Mr. Arpit will only be able to accumulate an amount of ₹ 1,26,658 /- after 12 years. Now, it's on him to decide, whether he is happy with investing ₹ 500 per month for 12 years or wants to increase his SIP amount.

Let's say, Mr. Arpit reorganizes his plans of investing ₹ 500 per month. Now he wishes to raise the amount of SIP up to ₹ 10,000 per month until 12 years. So, after entering the details in his Mutual Fund SIP Calculator, the results will go like this way:

### Inputs in your Mutual Fund SIP Return Calculator:

Monthly SIP: ₹ 10,000

Time period: 12 years

Expected Return: 9% p.a.

### Results Obtained

Mr. Arpit will now be happy to see an increased amount of ₹ 25,33,159 /- which he will accumulate at the end of 12 years.

Now you must have understood the effective functioning of a Mutual Fund Calculator. It helps you show the final value accumulated on your investment made today towards the achievement of your predetermined financial goals.

Disclaimer : The calculators are designed to assist you in determining the appropriate amount based on assumptions. Actual numbers will vary based on market condition & product.