Ever stared at your mutual fund statement, seen a big percentage, and thought, "Is that good?" Let's simplify mutual fund calculations for beginners in India!
Net Asset Value (NAV) is the daily price of one unit of your mutual fund. It's calculated daily and determines the value of your investment. Your journey starts here!
This tells you the total percentage gain or loss from your initial investment. Simple for short-term (<1 year) views, but doesn't consider time for longer periods.
Compound Annual Growth Rate (CAGR) is the average annual rate your investment has grown over 1+ year, assuming reinvested profits. Essential for comparing funds!
For Systematic Investment Plans (SIPs) with multiple investments on different dates, XIRR (Extended Internal Rate of Return) gives the most accurate annualised return.
Account for expense ratios, exit loads, inflation, and taxes. Don't just focus on past performance or compare different fund categories unfairly.
Ready to take control of your financial future? Use our SIP & Goal SIP Calculators at sipplancalculator.in to accurately track and plan your investments!