Ever wondered how some people seem to grow their wealth seamlessly just by investing in mutual funds and other securities? Investment in funds through SIPs (Systematic Investment Plan) is one of the most popular choices for those who are looking to grow their wealth over the long term. But, with numerous schemes available in the market, how can you ensure your investment is on the right track? This is where tools like the MF calculator help you find the right funds tailored to your goals.
In this article, we’ll explore more about the calculator, learn how you can use it effectively, and provide you with tips to choose the right funds to make the most of your SIP investments.
What is a Mutual Fund Calculator?
An MF or mutual funds calculator is an online financial tool that helps investors estimate the returns on their investments and make an informed decision. While using the calculator, the user needs to input some basic details, such as the type of investment they are interested in, the initial investment amount, an estimated tenure and the expected rate of return. By inputting the details, investors can get an overview of their investment returns and make the right decisions.
Here are some of the benefits of using an MF calculator:
- Helps to set financial goals by providing an estimate of the investments.
- It saves time and effort and simplifies complex calculations.
- It helps to make the right investment choices.
- It allows you to enter different investment amounts and other details and compare them to make the best decision.
Why are SIPs the Preferred Mode of Investment?
Here are the reasons why SIPs are the preferred choice of investment for many:
- It helps grow wealth in the long term by investing monthly with as little as ₹500.
- Consistent investment helps to make it easier to stay committed and disciplined to your financial goals.
- Investors can change the SIP amount or frequency of investment depending on the current situation.
- With the compounding power, your investments can grow rapidly in the long term.
How to Use MF Calculator Effectively?
To effectively use an MF or mutual fund calculator, here’s what you need to do:
- Enter the Investment Details: Input the amount you want to invest with the expected rate of return and the tenure. You need to set clear financial goals if you wish to make long-term or short-term investments and then enter the details.
- Consider Other Variables: Know that the calculator only provides you with an estimate and doesn’t calculate other variables, such as tax implications and changes due to market fluctuations.
- Choose the Right Funds: Do your research and choose the funds that align with your financial goals.
- Analyse the Results: Enter the correct details to get the final expected returns. You can even enter different numbers and strategise accordingly.
- Review Regularly: Considering the current financial and market conditions, you can refine your plans and change your investment amount.
Choosing the Best Mutual Funds
Follow the below-mentioned tips to choose the best mutual funds for SIPs:
- Review different funds and analyse their performance over the past 5-10 years.
- Diversify your investment portfolio and put your money in different categories of funds.
- Take expert advice to invest right and earn maximum returns.
- Review your portfolio regularly and make adjustments when needed.
Conclusion
Investing in SIPs is a fantastic and smart way to maximise your returns and financially secure your future. Bajaj Finserv is a trusted one-stop investment platform that offers a seamless experience. Users can manage their portfolios and invest in different schemes and 1,000+ funds.
Before investing, make sure you effectively use MF calculators and are consistent to make the most of your investments.
