Home
Back
Future Value Formula:
| From: | To: |
The Bandhan Mutual Fund Calculator estimates the future value of your mutual fund investment using the compound interest formula. It helps investors plan their financial goals by projecting potential returns over time.
The calculator uses the compound interest formula:
Where:
Explanation: The formula calculates how much your initial investment will grow over time with compound interest, assuming a fixed annual return rate.
Details: Calculating future value helps investors make informed decisions about their investments, set realistic financial goals, and understand the power of compounding in wealth creation.
Tips: Enter principal amount in INR, annual interest rate as a decimal (e.g., 0.12 for 12%), and investment period in years. All values must be positive numbers.
Q1: What is compound interest?
A: Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods, allowing your investment to grow exponentially over time.
Q2: How accurate are these calculations?
A: These calculations provide estimates based on fixed annual returns. Actual mutual fund returns may vary due to market fluctuations and fund performance.
Q3: Should I consider inflation in my calculations?
A: Yes, for long-term planning, it's recommended to use real returns (nominal returns minus inflation rate) to get a more accurate picture of your purchasing power.
Q4: Can I use this for SIP calculations?
A: This calculator is for lump-sum investments. For Systematic Investment Plans (SIP), a different formula accounting for regular contributions is needed.
Q5: What factors affect mutual fund returns?
A: Market conditions, fund management, expense ratio, economic factors, and investment duration all influence actual returns.