Mutual Fund Calculator
Calculate your mutual fund investment returns for lumpsum or SIP (Systematic Investment Plan). See projected growth, total returns, and year-by-year wealth accumulation.
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Year-by-Year Investment Growth Projection
Track how your investment grows each year through compounding:
| Year | Invested | Interest Earned | Total Value |
|---|
Expected Returns by Mutual Fund Category
| Fund Category | Risk Level | Expected Returns | Ideal For |
|---|---|---|---|
| Large Cap Equity | Moderate | 10-12% p.a. | 5+ years, stable growth |
| Mid Cap Equity | Moderately High | 12-15% p.a. | 7+ years, growth seekers |
| Small Cap Equity | High | 15-18% p.a. | 10+ years, aggressive |
| Hybrid/Balanced | Moderate | 8-10% p.a. | 3-5 years, balanced |
| Debt Funds | Low | 6-8% p.a. | 1-3 years, safety |
| Index Funds | Moderate | 10-12% p.a. | 5+ years, passive investors |
Note: Past returns do not guarantee future performance. Returns are subject to market risks. These are historical averages and actual returns may vary.
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Lumpsum vs SIP: Choosing the Right Mutual Fund Investment Strategy
Mutual funds pool money from multiple investors to invest in diversified portfolios of stocks, bonds, or other securities. Whether you invest a lumpsum amount or through Systematic Investment Plans (SIP), understanding projected returns helps you set realistic financial goals. This calculator uses compound interest formulas to estimate your investment growth based on expected annual returns and investment duration.
Lumpsum Investment: One-Time Capital Deployment
A lumpsum investment means investing a significant amount at once - perhaps from a bonus, inheritance, or savings. The formula is FV = P × (1 + r)^n, where P is principal, r is annual return rate, and n is years. Lumpsum works best when markets are at lower valuations since your entire investment benefits from subsequent growth. A ₹1,00,000 lumpsum at 12% for 10 years grows to ₹3,10,585. The advantage is full exposure to compounding from day one; the risk is market timing - investing at market peaks can hurt short-term returns.
SIP: Building Wealth Through Disciplined Monthly Investments
Systematic Investment Plans involve investing fixed amounts monthly, regardless of market conditions. The SIP formula is FV = P × [(1 + r)^n - 1] / r × (1 + r), where P is monthly investment, r is monthly return rate, and n is total months. A ₹5,000 monthly SIP at 12% for 10 years (₹6,00,000 total invested) grows to approximately ₹11,61,695. SIP's key advantage is rupee-cost averaging - you buy more units when prices are low and fewer when high, reducing average cost over time. This strategy removes emotional decision-making and market timing concerns.
What is CAGR and Why Does It Matter for Mutual Funds?
Compound Annual Growth Rate (CAGR) measures the annualized return rate that would grow your initial investment to its final value over the investment period. Unlike simple returns, CAGR accounts for compounding and provides a standardized way to compare different investments. For a lumpsum that grew from ₹1,00,000 to ₹3,10,585 in 10 years, CAGR is 12%. For SIPs, XIRR (Extended Internal Rate of Return) is more appropriate since cash flows occur at different times. When selecting mutual funds, compare CAGR over 3-year, 5-year, and 10-year periods to assess consistent performance versus market cycles.
How Do Expected Returns Vary Across Mutual Fund Categories?
Different mutual fund categories offer different risk-return profiles. Equity funds investing in stocks historically deliver 10-15% annual returns over long periods but with significant volatility. Large-cap funds are less volatile than small-cap funds but offer lower return potential. Debt funds investing in bonds provide 6-8% returns with lower risk - suitable for shorter horizons or conservative investors. Hybrid funds combining equity and debt target 8-12% returns with moderate volatility. When using this calculator, select expected returns matching your chosen fund category. For retirement planning across multiple investments, try our retirement calculator.
The Power of Compounding: Why Starting Early Matters
Compounding creates exponential growth by reinvesting returns to generate additional returns. A ₹1,00,000 investment at 12% becomes ₹3.1 lakh in 10 years, ₹9.6 lakh in 20 years, and ₹30 lakh in 30 years - each additional decade nearly triples your wealth. Starting a ₹5,000 monthly SIP at age 25 versus 35 can mean a difference of ₹1 crore or more by retirement. This calculator's year-by-year table illustrates how wealth accelerates in later years. Even small increases in investment amount or return rate compound dramatically over long periods. Use our compound interest calculator to explore compounding scenarios further.
Setting Realistic Return Expectations for Your Investments
While equity mutual funds have delivered 12-15% CAGR historically, returns fluctuate significantly year to year. Some years deliver 30%+ gains while others show 20% losses. Use conservative estimates (10-12% for equity, 7-8% for balanced funds) for planning to avoid disappointment. Remember that past performance doesn't guarantee future returns - economic conditions, interest rates, and market cycles all affect outcomes. The calculator shows scenarios at different return rates to help you plan for various outcomes. Always invest based on your risk tolerance, time horizon, and financial goals rather than chasing recent high performers.
Last Updated: January 2026 | Reviewed for accuracy