Detailed Guide on Calculating Capital Gain on Mutual Fund - ABC of Money

Mutual fund investing is simple and can be learnt by anybody who wishes to increase their money and make a profit from the market. The finest guiding tool is a mutual fund calculator, which has a top-notch advanced algorithm that gives the investor accurate figures on predicted returns on investment in specific types of mutual funds, as well as other information about the investment.


Anyone, at any time, can use the mutual fund calculator for free of cost. Mutual fund calculator aids in making mutual fund investment decisions based on the investor’s financial goals.

Mutual Funds Returns Calculator

Are you getting a good return on your mutual funds? The mutual fund returns calculator delivers an answer by simply computing fund returns over the specified period.

Return (absolute or point-to-point)

This method may be used to calculate basic returns on an initial investment. The beginning and end Net Asset Values of the specific SIP chart must be set to calculate this. The holding duration is virtually irrelevant for calculating the point-to-point return.

CAGR (Compound Annual Growth Rate) (Compounded Annual Growth Rate)

When your SIP investment duration exceeds 12 months, the CAGR is an easy way to calculate your return. This usually refers to a number that reveals how investments should have increased as consistent returns. Predicted returns are seldom the same year after year. This is why CAGR is used to describe the average annual rate of growth over a certain period, smoothing out the volatility in the returns.

Annualized Return Calculator

Certain people wait for their total return to move into an annual cycle, and they obtain returns when they hold for less than a year. The EAY, or effective annualised yield, is another name for this strategy.

How to Assess the Performance of Mutual Funds

Define your investment objectives

What exactly is the goal of my investment? Your mutual fund selections should be based on the answer to this question. You can invest in a debt fund, for example, if you desire a steady income with capital protection. Equities, on the other hand, will fit your needs if you have a bigger risk appetite and want to develop your wealth. As a result, it is critical to first identify your financial aim before deciding on your investment. This is also important in fund assessment.


To compare, make a list of a few peer funds

It’s impossible to judge a mutual fund on its own. As a result, you should keep track of a small list of comparable funds and compare them regularly. Free mutual fund screener tools are available from a variety of FinTech companies and third-party websites.


The Fund’s Fee Structure

You pay a mutual fund firm for its services and expertise. Some funds need careful management and prompt choices on whether to acquire, sell, or keep an asset. Keep in mind that a fund with a larger charge is always better. Before making a decision, make sure to look at all of the options.


Returns on Investment That Have Been Risk-Adjusted

Every mutual fund anticipates certain market and industry risks. We call risk-adjusted returns when we finance strategies in such a way that they earn better returns when compared to expected risks.

Mutual Fund Calculator’s Advantages

  • Anyone interested in investing in mutual funds can utilize a free tool called a mutual fund calculator.
  • It may be used as a free guide by an investor while making a mutual fund investment choice.
  • The mutual fund calculator uses a sophisticated algorithm to offer you precise answers.
  • It’s incredibly simple to use a mutual fund calculator, and you don’t need any prior financial experience.
  • Using a mutual fund calculator will expand your knowledge and motivate you to learn more about mutual funds and how to build your money wisely.




Evaluating the performance of your investments is an essential part of your investing process. You must determine whether the profits on your investment are sufficient. The results should be compared to your expectations, as well as similar and comparable investment products and the benchmark index. You must also utilise the appropriate return measure for the period under consideration.