Ever wondered if your mutual funds are *really* making you money? Ditch the confusion! We'll simplify how to calculate your returns like a pro, specially for Indian beginners.
Your total gain percentage. Simple formula: (Current Value - Original Investment) / Original Investment * 100. Useful for less than a year, but misleading over longer periods as it ignores time.
Compounded Annual Growth Rate (CAGR) is the industry standard. It annualises your return, showing average yearly growth for investments held over a year, especially for lump sum investments.
For Systematic Investment Plans (SIPs), XIRR (Extended Internal Rate of Return) is key. It accurately accounts for multiple investments at different times. Check your statement or use Excel!
Don't ignore Exit Loads & Taxes (STCG/LTCG)! Avoid comparing apples to oranges (different fund types). Don't just focus on short-term spikes. Be aware of Expense Ratios impacting your net returns.
It depends! For equity, aim for consistent outperformance vs. inflation & benchmark (12-15% CAGR over 5+ years). Check quarterly, not daily. Focus on long-term goals and stay disciplined.
Ready to apply this knowledge? Use our free calculators to plan SIPs, track goals & gain clarity on your investments today. Visit sipplancalculator.in now!