What are mutual fund returns?

Mutual fund returns represent the gain (or loss) generated by a fund over a period. The two main measures are absolute return (total % change) and CAGR (annualised return). Most fund factsheets show 1Y, 3Y, 5Y, and since-inception CAGR.

How are SIP returns calculated?

SIP uses the future value of annuity formula. Each monthly instalment compounds for a different period, and the calculator sums them up: FV = P × [((1+r)^n − 1) / r] × (1+r). This gives total maturity from monthly contributions.

How are mutual fund returns taxed?

Equity funds: LTCG above ₹1.25 lakh/year taxed at 12.5%; STCG at 20%. Debt funds: all gains taxed at slab rate under FY 2025-26 rules. ELSS has 3-year lock-in with the same equity LTCG rules.

Are past returns a guarantee of future returns?

No. SEBI mandates the disclosure that past performance does not guarantee future returns. Use historical CAGR as a directional benchmark, not a guarantee. Always consider fund category, expense ratio, manager track record, and market cycle.

Updated Jul 2026 · India

Mutual Fund Returns Calculator

Compute absolute return, CAGR, and final maturity for both SIP and lumpsum mutual fund investments — instantly.

Calculate MF Returns

Investment Mode

Monthly SIP Amount (₹)

Expected Annual Return (%)

Investment Period (Years)

Understanding Mutual Fund Returns

Mutual fund returns measure how much your investment has grown over a chosen period. The three measures every investor should know:

Absolute Return = (FV − PV) / PV × 100. Best for periods under 1 year.
CAGR (Compound Annual Growth Rate) = (FV/PV)^1/n − 1. Best for multi-year horizons.
XIRR — for irregular cash flows like SIP top-ups or partial redemptions.

This calculator returns the maturity value, absolute return, and CAGR for both SIP and Lumpsum modes.

Formulas Used

Lumpsum

FV = P × (1 + r)ⁿ

SIP (Monthly)

FV = P × [((1 + i)^m − 1) / i] × (1 + i)

Where i = r/12 (monthly rate) and m = n × 12 (total months).

Indicative Returns by Fund Category

Category	5Y CAGR	10Y CAGR	Risk
Large-Cap Equity	12-15%	11-13%	Moderate
Mid-Cap Equity	15-20%	13-16%	High
Small-Cap Equity	18-25%	14-18%	Very High
Hybrid (Balanced)	9-12%	8-11%	Moderate
Debt — Short Duration	6-8%	6-7%	Low
ELSS (Tax Saver)	13-17%	12-15%	High

Indicative ranges based on long-term industry averages. Actual returns vary by fund. Past performance does not guarantee future results.

Frequently Asked Questions

What is CAGR in mutual funds?

CAGR (Compound Annual Growth Rate) is the smoothed annual return that would take your initial investment to its final value. CAGR = (FV/PV)^1/n − 1.

How are SIP returns different from lumpsum?

SIP spreads investment across months, benefiting from rupee-cost averaging. Lumpsum invests it all upfront. SIP reduces timing risk; lumpsum maximises compounding when markets are rising.

What is a good mutual fund return in India?

Equity funds: 11-14% CAGR over 10 years is reasonable. Debt: 6-8%. Anything above 18% over a long period is exceptional and usually category-specific (small-cap, sector).

How are MF returns taxed?

Equity LTCG (>1 yr) above ₹1.25L taxed at 12.5%; STCG at 20%. Debt funds taxed at slab rate. ELSS has 3-yr lock-in.

Should I use absolute return or CAGR?

Absolute return for <1 year holdings. CAGR for multi-year comparisons across funds.

Why do my real returns differ from this calculator?

This is a constant-return projection. Real funds have year-on-year volatility, expense ratios (0.5-2%), and exit loads. Use the output as a directional estimate, not a guarantee.

Official Sources & References

This Mutual Fund Returns Calculator uses formulas, rates, and rules published by these authoritative Indian government and regulatory bodies. Always cross-check with the official source before making financial decisions.

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