How are Mutual Fund SIP Returns Calculated?

At PersonalFN, we spend a lot of time and effort in short-listing funds which are best for investors, by using various qualitative and quantitative techniques. You can also benefit from the well-researched advice of PersonalFN on Mutual funds. These funds are expected to investin only a specific sector. For instance, a banking fund will invest only in banking stocks. Generally, such funds invest 65% of its total assets in a respective sector.

Hence, it becomes crucial to compare the fund with its benchmark index and its peers, so as to deduce a meaningful inference. Again, one must be careful while selecting the peers for comparison. For instance, it doesn’t make sense comparing the performance of a midcap fund to that wtd avg annualized return of a largecap. The organisation that manages the investments is termed as the Asset Management Company. The AMC employs various employees in different roles who are responsible for servicing and managing investments. If any lump sum amount is added, insert date and amount ex.


If you’ve opted for a regular plan, i.e. investing in mutual funds through a distributor, they will assist you with KYC compliances. However, if you plan to invest in mutual funds through the direct route, you can complete your C-KYC through five simple steps. But before you embark on the journey of investing in mutual funds, you need to complete your KYC formalities. It is vital compliance on the part of financial product manufacturers, to know their investor better.

It’s pertinent for investors to have a long term (at least 3-5 years) horizon if they wish to invest in equity oriented funds. Hence, it becomes important for them to evaluate the long term performance of the funds. This does not imply that the short term performance be ignored. Performance over the short term should also be evaluated; however, the focus should be more on the long term performance.

A FREE assessment that tells you what kind of investor you are, your risk tolerance levels, and a lot more. Extended Internal Rate of Return takes this into account. In XIRR, the CAGR of each installment is calculated, and then they are added together to give you the overall Compounded Annual Growth Rate. Now the next question is if CAGR is not the right measure for evaluating SIP investments, then what is? Note that the time period is assumed to be divided in n equally spaced time periods.

  • They will take care all administration, paperwork activity such as form filing, etc.
  • Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
  • Average return is the simple average where each investment option is given an equal weightage.
  • In an SIP, a predetermined amount is invested in the mutual fund every month.

Therefore, the focus should be on the fund houses which are strong in their systems and processes. These funds invest their money in other funds of the same mutual fund house or other mutual fund houses. Now returns on mutual funds are calculated in two ways one is in absolute terms and another is compound annual growth rate . So how has been the performance of your mutual fund scheme? Let’s look at some ways an investor can calculate returns on his investment, whether it’s a one-time lump sum or through a systematic investment plan .

Risk-adjusted return of Mutual funds

So, in SIP the investments are done over different market cycles and therefore you benefit from rupee-cost averaging factor. With SIP one can stay invested for a longer period of time thus, your money stays invested and generates return over a long term. So, your investment gets sufficient time to enjoy the power of compounding. One can start a SIP with very small investment say Rs 500 per month.

Investor need to submit a physical written request at the CAMS Investor Service Center or respective AMC Service Center for the same. In the login screen of myCAMS mobile app; please enter your registered email id as User ID; the login password received and click on LOGIN. User may now re-login to myCAMS with the user id as the registered email id and the new set password.

wtd avg annualized return

Send us the study and we’ll get back to you as soon as possible. I’m fresh to Mutual funds and invested with very basic financial knowledge. Now I have learnt some basics and looking forward to learn more….. We already offer the National Pension System on our platform as a point of presence registered with PFRDA. You can use this to save for retirement and at maturity use NPS savings to purchase annuity for monthly income post-retirement. Absolute Returns or Total Returns is simply how much gain or loss you’ve made on your investment.

An annualised rate of return can also be calculated using a percentage value. Compound annual growth rate refers to the compounding of returns over time. It gives investors a preview of an investment’s results, but it doesn’t tell them how volatile it is. Relatively simple to understand and calculate; for example when using the Unit Valuation System the unit value is the sum of the assets divided by the number of units in circulation.

Debt funds or Income funds

If the SIP date during a particular month is a holiday, units will be allotted at the applicable NAV on the subsequent working day. All your MF investments serviced by CAMS automatically gets mapped to the portfolio provided you have the same email id registered across all your folios. If in case any of your MFs missing in the CAMS mailback statements or myCAMS login, please ensure that your email id is updated in all your MF investments. MyCAMS is secure and does not store any information on your device or SIM card.

wtd avg annualized return

World-class wealth management using science, data and technology, leveraged by our experience, and human touch. A combination of MS Excel functions proves effective when diverse amounts are invested across options. For best practices on efficiently downloading information from, including the latest EDGAR filings, visit

To calculate your mutual fund returns, first consider your way of investment. The calculations differ for the lump sum method and SIPs. The timing of your instalments also affects your returns. While the CAGR method is excellent for calculating lump sum returns, the XIRR method is best suited for SIP returns.

Debt Holding In Portfolio

Several forms of returns are derived through different mathematical calculations and among these, average or arithmetic return is widely used. Average return is the simple average where each investment option is given an equal weightage. Mutual Fund Utilities is a shared platform of different fund houses. You need to create an account first, before transacting.

Manual computation of return on mutual funds at different rate of interest is a little difficult. Especially you are an alien to the financial httpss:// world and dread it to the core. The Sensex, over the past three years, has generated a compounded annual growth of about 14 per cent .

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