Online mutual fund is the primary reason why more and more potential investors are choosing this path to start investing their hard-earned savings and let it grow. It should come as no surprise that offline investment would be quite a tiresome process, as the individual would have to visit the AMC office, fill forms, or contact a mutual fund distributor and then start investing in mutual fund schemes.
Since the advent of online methods of investment, it has become easier to start the investing process in mutual funds and track them at the same time. This is why, due to its hassle-free nature and transparency, more and more individuals opt to go for this route and make the most with growing wealth.
One of the main reasons why investors get transparency and confidence in the process of online mutual fund investing is due to the easy availability of online calculators. Financial calculators are available for all types of investing, based on the type of goal you have in mind, – such as retirement calculator, child education planning, lumpsum calculator, SIP calculator and more.
Here is how mutual fund calculators assist investors and make their investing process a simpler one:
- It saves investors from the hassle of manual calculation, thus eliminating the possibility of human errors.
- It is helpful to plan their finances more efficiently once they get an idea on how much they can expect from their lumpsum or systematic mutual fund investment.
- The tool asks for simple inputs and gives an estimate in seconds to the investor.
- It provides investors with a fairly accurate estimate. It is not possible to give the exact numbers here as mutual fund investments are subject to market risks. But, the tool helps to understand an estimated figure that helps most investors to plan ahead.
Since we are focusing on financial planning here and how to give it shape, let us also talk about one of the most important types of financial planning which is your retirement planning. Sooner or later, an individual retires from whichever profession he/she has been involved in and the looming question stands post that: ‘How will I sustain my daily expenses post retirement?’
Well, there is no definite answer to this but there is a definite solution – Early and disciplined investment, nurtured with time, patience, and the right financial advice, to build a retirement fund that will help you sustain your needs in the later part of your life.
A retirement calculator can help you in this regard. Suppose you wish to accumulate a corpus of Rs 50 lakhs after 30 years, with Rs 1 lakh as your current savings. Then, suppose you expect inflation as 5% and assume the return to be 12% p.a. , your monthly savings should ideally be Rs 5,739. These figures are assumed as the rate of return in case of mutual fund investment cannot be predicted as it is not assured. But an estimate helps an investor plan better and that’s what a retirement calculator is for.
Similarly, a lumpsum calculator would help you to know the expected corpus from your one-time investments after your investment period. Although new investors may also search for lumpsum SIP calculator online, they should note that based on the investment type, they should either search for lumpsum calculator or SIP calculator as the purposed of both the calculators is same.
In this read, we focused on important financial tools like the retirement calculator, lumpsum calculator and how they may help investors to invest in mutual funds in a better manner.
