Mutual Fund Calculator: From just Rs 100 to Rs 1.41 crores - Small savings, big amount! Here is how

Mutual Fund Calculator: Mutual Fund investments are subject to market risk but if the investment is for long-term, the risk factor goes exponentially down, say experts. According to tax and investment experts, the Systematic Investment Plan (SIP) option given by the mutual fund houses to its investors is gaining traction among the new-age investors who are in the nascent phase of their career. Such 25 to 30-year-old mutual fund investors find it easy to invest via SIP than to invest a lump sum amount at one point in time. As such mutual fund investors can afford the risk of equity exposure, investment advisors advise them to invest in equity mutual fund plans as in the long-term perspective, it gives around 15-17 per cent returns. So, it's time to use a mutual fund calculator before deciding the SIP amount and find out the sync between the investment goal and the investment amount.

Speaking on the mutual fund investments via SIP Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Equity mutual funds are better suited for the investments that are for the long-term perspective. If an investor takes a time horizon of above 20 years, then he or she can expect to fetch at least 15 per cent returns and maybe 17 per cent in case the equity market performs better in the last two-three years of the maturity period."

See Zee Business Live TV streaming below:

Batting for the mutual funds SIP; Jitendra Solanki, a SEBI registered tax and investment expert said, "In the last three years, a good number of mutual funds have given 18 per cent or above annual returns. So, in a longer period like 20 years or above, the annual returns may be above 17 years, if the selected fund outperforms the market."

Assuming Rs 3,000 monthly SIP for the period of 25 years, if the mutual fund investor gets tepid returns then at 15 per cent annual returns, his or her monthly Rs 3,000 SIP will become Rs 97,30,589. Means, the mutual fund investor's Rs 3000 per month or Rs 100 per day (Rs 3,000 /30 = Rs 100) would become Rs 97,30,589 in 25 years if the return is 15 per cent.

However, if the return is higher say 17 per cent, then the mutual fund investor's Rs 3,000 per month would become Rs 1,41,97,879. So, in case of higher returns, one's Rs 100 per day would become Rs 1,41,97,879 in 25 years, says mutual fund calculator.