Effective Returns
Growth Over Tenure
How the Mutual Fund Calculator works
This calculator estimates the future value of a mutual fund investment made either as a one-time lump sum or as a monthly SIP (Systematic Investment Plan). It assumes a constant expected annual return; real mutual fund returns are market-linked and will move up and down over time.
Formulas used
SIP: FV = P × [ ((1 + i)n − 1) / i ] × (1 + i)
- P = Amount invested (one-time for lump sum, or per month for SIP)
- r = Expected annual return (as a decimal); i = monthly return = r ÷ 12
- t = Years; n = number of monthly instalments = t × 12
Worked examples
Lump sum: ₹1,00,000 invested once at 12% for 10 years grows to 1,00,000 × (1.12)10 ≈ ₹3,10,585 (about ₹2,10,585 of returns).
SIP: ₹10,000 invested every month at 12% for 10 years totals ₹12,00,000 invested and grows to about ₹23,23,391 — roughly ₹11.2 lakh of returns. Because each SIP instalment compounds for a different length of time, SIPs also smooth out market ups and downs (rupee-cost averaging).
Things to keep in mind
- Mutual fund returns are not guaranteed. The expected-return figure here is only an assumption; actual performance depends on the market and the fund.
- Real returns are net of the fund's expense ratio and any exit load, so the amount you receive can be a little lower than a gross projection.
- Gains are subject to capital gains tax that varies by fund type (equity vs debt) and holding period, so check the current tax rules for your fund before redeeming.
This calculator is provided for general illustrative and educational purposes only. The figures, projections, and graphs generated are indicative estimates based on standard compounding mathematics and user-supplied parameters — they do not constitute financial advice, tax guidance, or a guarantee of future returns. Actual returns from Mutual Funds, PMS, SIF, or fixed-income schemes depend on prevailing market fluctuations, macroeconomic factors, applicable expense ratios (TER), and taxation on redemption. True Investment Services (AMFI ARN-281405 | APMI APRN08615) is an AMFI-registered Mutual Fund Distributor dealing in Regular Plans only and earns trailing commissions on client investments. Option of Direct Plan is available to investors. Please read all Scheme Information Documents (SID/KIM) and consult our Certified Financial Planner (CFP) before executing investments.
