Mastering Mutual Fund Projections
Most calculators force you to choose between calculating a Systematic Investment Plan (SIP) or a one-time Lumpsum. However, practical wealth building usually involves both: deploying an initial chunk of capital to establish a baseline, followed by disciplined monthly contributions. Our Mutual Fund Returns Calculator unites both methodologies to give you an accurate view of your portfolio's trajectory.
The Combined Compounding Engine
To provide exact projections, our system executes two concurrent compound interest calculations and aggregates the final future value:
Total FV = [ Lumpsum × (1 + r)n ] + [ SIP × {((1 + r_monthly)n_months - 1) / r_monthly} × (1 + r_monthly) ]
- The Lumpsum Component compounds annually based on your fractional time horizon.
- The SIP Component acts as an annuity due, compounding monthly and assuming deposits occur at the beginning of each cycle.
- The Chart Validation instantly segregates your out-of-pocket capital (Purple) from the wealth generated entirely by market returns (Green).