Investment Calculator

You can use an investment calculator at multiple points of your financial journey. With its help, you can not only plan your goals and evaluate investment options but also assess if you are on track to potentially achieving your target.

To understand how you can reach Rs. 1 crore by investing Rs. 5,000 monthly, you can use the calculator to estimate the rate of return and duration needed to potentially achieve that amount. For instance, if we assume you are investing in an equity mutual fund where you expect to earn 12% per annum, the investment calculator will show you that you need an investment horizon of approximately 29 years.

Example for illustrative purposes only. There is no assurance that the calculator’s projections will be achieved.

It is not essential to use an investment calculator. Whether you use one or not, your money will continue to move as per market conditions and the fund’s investment strategy. However, using this tool can offer you insight into your potential returns, which can help you set realistic expectations, identify a suitable investment amount, horizon or avenue and approach your financial journey with a detailed vision.

When investing with an objective like retirement in mind, you need to input your planned monthly investment amount, expected rate of return and investment horizon. If the calculator’s estimates are not in line with your goal, you can adjust the inputs till you arrive at the combination that suits your needs.

To use an investment calculator effectively, you need factors like your investment amount, expected return rate and investment duration.

Yes, there are various investment calculators for mutual funds and stocks. Most of these are freely available online.

Whether you choose to invest in the stock market or save money in a traditional avenue like a bank account or a bank deposit is a personal decision. Market-linked investments offer higher growth potential in the long term but entail higher risk. Traditional avenues offer stability, but their returns may not outpace inflation over time.

However, if you wish to get a more detailed view, you can use an investment calculator to estimate the potential long-term growth of your investments in different avenues. For example, you can use an expected return rate of 12% to see the potential size of your final corpus if you were to invest in an equity mutual fund. You can then use the prevailing recurring deposit rate of your bank (say, 6%) to estimate those returns.

This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.

The content herein has been prepared on the basis of publicly available information believed to be reliable. However, Bajaj Finserv Asset Management Ltd. does not guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed. The tax information (if any) in this article is based on current laws and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.