BAJAJ ASSET MANAGEMENT LIMITED.
BAJAJ ASSET MANAGEMENT LIMITED.
Use the ETF calculator to see how monthly or one-time investments may grow. Change the amount, time period or assumed return to explore different scenarios.
An ETF calculator estimates how a monthly or one-time investment could grow over a selected period. Enter the investment amount, time period and assumed annual return to view the total amount invested, estimated returns and estimated maturity amount.
An ETF is a mutual fund scheme whose units are listed and traded on a stock exchange. It typically tracks an index, commodity or another underlying asset, while its market price may change throughout the trading day. SEBI’s investor education resource explains how ETFs work, how they are traded and the factors investors should consider.
The ETF investment calculator uses your investment amount, time period and assumed annual return to estimate future value through compounding. You can adjust these inputs to compare different scenarios. The result is based on your assumptions rather than the performance of a specific ETF.
Formula for a lumpsum investment
For a lumpsum investment, the estimated maturity amount is calculated as:
M = P × (1 + r)n
Where:
Formula for a monthly investment
For a monthly investment, the estimated maturity amount is calculated as:
M = P × [((1 + i)n - 1) / i] x (1 + i)
Where:
This formula assumes that each monthly investment is made at the beginning of the month.
Use Bajaj AMC’s ETF calculator in a few steps:
Try more than one return assumption. A cautious estimate, a middle estimate and a higher estimate can give you a more useful range than a single projection.
Umang has ₹1,00,000 available for a one-time ETF investment and plans to stay invested for 10 years. To estimate its future value, he enters an assumed annual return of 10% in the calculator.
Using the lumpsum formula:
Estimated maturity amount = ₹1,00,000 × (1.10)10
Based on these inputs, Umang’s estimated maturity amount would be approximately ₹2,59,374.
This illustration assumes a constant annual return of 10%. Actual ETF returns will depend on market performance and may vary.
'The figures shown are for illustrative purpose only'
Use the calculator to compare key inputs and see how they shape the estimate:
The result looks precise. Markets are not. Unless stated otherwise, the estimate may not account for:
The estimated maturity amount is therefore best used to compare scenarios, not predict future returns.
Several factors influence how an ETF performs and the return an investor receives:
Performance of the underlying asset
An ETF’s return largely depends on the index, securities, commodity or other asset it tracks. Equity ETFs and gold ETFs, for instance, may respond differently to the same market conditions.
Tracking difference
An ETF’s return may differ from that of its benchmark due to expenses, portfolio rebalancing, cash holdings and trading costs. SEBI explains tracking error as a measure of how closely a fund or ETF tracks its benchmark.
Expense ratio
The expense ratio is deducted from the ETF’s assets and affects the return received by investors.
Liquidity and bid-ask spread
Liquidity can influence the price at which ETF units are bought or sold. A wider bid-ask spread increases the effective transaction cost.
Investment timing
A lumpsum investment is made at one market level, while monthly investments spread purchases across different levels. This reduces dependence on a single entry price.
Investment period
The investment period affects how long the money remains exposed to market movements and compounding. A suitable period depends on the ETF’s underlying asset, the investor’s goal and their risk appetite.
An ETF SIP and an ETF lumpsum differ mainly in how and when the money is invested:
Basis | ETF SIP | ETF lumpsum |
Investment pattern | A fixed amount invested periodically | A one-time investment |
Purchase price | Units purchased at prevailing market prices on different dates | Units purchased at the prevailing market price on one date |
Cash-flow suitability | May suit investors investing from regular income | May suit investors investing an available surplus |
Timing exposure | Spread across multiple purchase dates | Concentrated on a single purchase date |
Calculator input | Monthly investment, time period and expected return | Investment amount, time period and expected return |
An ETF SIP calculator models periodic investments, while an ETF lumpsum calculator models a one-time investment made at the beginning of the selected period. ETF units are traded on the exchange at prevailing market prices, and periodic investment facilities may vary across brokers and platforms.
The expected return can significantly affect the estimate. Choose an assumption based on the ETF’s underlying asset and your investment period, rather than relying on its strongest recent performance.
Compare three scenarios:
This range can show how the investment plan may fare under different assumptions. If it works only in the higher scenario, consider revisiting the investment amount, time period or goal.
ETFs provide exposure to different asset classes and market segments, with each type carrying a distinct risk and return profile:
The category matters. A single expected return cannot represent the risk and return behaviour of every ETF.
An ETF calculator can help with planning. Choosing an ETF requires a closer look at:
Review the latest Scheme Information Document and Key Information Memorandum for scheme-specific details.
An ETF calculator estimates the future value of a monthly or one-time ETF investment. It uses the investment amount, time period and expected annual return entered by the user.
An ETF calculator is accurate for the inputs and formula used. The maturity amount remains an estimate because actual ETF returns do not stay constant.
No. Bajaj AMC’s ETF calculator uses the expected return (p.a.) entered by the user and does not retrieve the historical performance of a particular ETF.
Yes. Select SIP to estimate returns from a monthly investment or Lumpsum to estimate returns from a one-time investment.
Lumpsum returns are estimated by compounding the initial investment at the assumed annual return. SIP returns are calculated by compounding each monthly investment for the period it remains invested.
No. The calculator does not deduct the ETF’s expense ratio, tracking difference, brokerage, statutory charges or applicable taxes from the estimated amount.
There is no single return rate suitable for every ETF. Choose an assumption based on the ETF’s underlying asset and your investment period, and compare cautious, moderate and higher-return scenarios.
Yes. ETF values can fall when the underlying market or asset declines. A calculator that accepts only positive return assumptions may not display this outcome.
Retail investors generally need a demat account and a trading account to buy and sell ETF units on a stock exchange. ETFs may also involve brokerage and demat charges, where applicable.
The future-value calculation may be similar when the inputs are the same. However, ETFs trade on an exchange at prevailing market prices, while index mutual fund transactions are processed at the applicable NAV.
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The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
