Project mutual fund growth with SIP, expense ratios, and fee impact
A mutual fund calculator projects the growth of your lump sum and systematic investment plan (SIP) contributions over time. It accounts for the fund's expected return and expense ratio, showing you the impact of fees on your final corpus.
Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. This calculator helps you understand how even small differences in expense ratios can compound into significant amounts over long investment horizons, making fee-conscious fund selection crucial.
Use this tool to compare gross returns versus net returns after fees. By adjusting the expense ratio, you can see firsthand how high-cost funds eat into your returns and why low-cost index funds and ETFs have become increasingly popular among savvy investors.
The mutual fund calculator computes the future value of a lump sum and SIP using the compound interest formula, then subtracts the expense ratio from the gross return to show the net value after fees.
The expense ratio is an annual fee charged by the fund. Over long periods, even a 1% difference in expense ratios can significantly impact your final corpus due to the compounding effect on fees.
A Systematic Investment Plan (SIP) allows you to invest a fixed amount in a mutual fund at regular intervals, typically monthly. It helps average out market volatility and builds wealth through disciplined investing.
Actively managed mutual funds typically charge 0.5-1.5% in expense ratios, while passive index funds charge 0.03-0.20%. Lower expense ratios generally leave more of your returns working for you over time.
Passive funds that track market indexes tend to outperform actively managed funds over long periods due to lower fees. However, active funds may be beneficial in less efficient markets or specialized sectors.
Both offer diversified portfolios, but ETFs trade on exchanges like stocks throughout the day, while mutual funds are priced once daily at NAV. ETFs often have lower expense ratios and greater tax efficiency.