Which law applies. Section numbers on this page are those of the Income-tax Act, 2025, which took effect on 1 April 2026 and governs tax year 2026-27 onwards. Where this page uses the familiar shorthand 80C, the corresponding provision of that Act is section 123. The Income-tax Act, 1961 was repealed with effect from 1 April 2026. Its section 80C is named here only because that Act governs tax years before 2026-27.

Investment Mutual Funds

Mutual Fund Returns Calculator

No Sign-Up. No Paywall. Calculate lumpsum and SIP returns on mutual fund investments. Get total corpus, CAGR, and absolute returns with tax impact.

By Aditya GuptaAccounting & Finance EducatorFormula-based tool — no statutory rate appliesLast reviewed: 15 September 2026

Method: Point-to-point and annualised return arithmetic on NAV or amount inputs. Past returns are not indicative of future returns. Outputs are illustrative and depend entirely on the assumptions entered.

SIP & LumpsumCAGR AnalysisTax-Adjusted ReturnsFY 2026–27

Investment Details

Monthly SIP Amount (₹)

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Expected Annual Return (%)

Investment Period (Years)

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Fund Type (for Tax)

Projected Returns

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Total Invested—

Total Returns—

Annualised Return (XIRR)—

Absolute Return—

Est. Tax if Redeemed at the End (incl. 4% cess)—

Post-Tax Corpus—

Visual Breakdown

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Invested

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Tax

Top Indian Mutual Fund Categories Compared

Category	SEBI Mandate	Expected Return	Best For
Large Cap	≥80% in top 100 by m-cap	10-12%	Conservative equity investors
Mid Cap	≥65% in 101-250 m-cap	12-15%	Aggressive growth
Small Cap	≥65% in 251+ m-cap	13-18% (high vol)	Long-horizon risk-takers
Flexi Cap	≥65% equity, free allocation	11-14%	Manager-driven; balanced
Multi Cap	≥25% each in large/mid/small	12-14%	True diversification (post-2020 mandate)
ELSS	≥80% equity; 3-year lock-in	12-15%	Section 123 tax saver
Index Fund (NIFTY 50)	Tracks index	10-11% (after fees)	Passive core holding
Aggressive Hybrid	65-80% equity	9-12%	Lower volatility equity
Conservative Hybrid	10-25% equity	8-10%	Senior citizens, capital preservation
Debt — Short Duration	1-3 yr Macaulay duration	6.5-7.5%	1-3 year horizon
Debt — Liquid	Up to 91 days maturity	6-7%	Emergency fund parking
Gold ETF	Tracks gold prices	7-10%	Portfolio diversifier (5-10%)

How to Pick a Good Mutual Fund

The 5-Filter Framework

Category fit: Match category to your horizon and risk profile
Track record: 5+ year rolling returns vs benchmark; top quartile preferred
Expense ratio: Direct plan TER < 1% for active, < 0.3% for index
Fund manager tenure: Minimum 3 years; star manager changes are red flags
AUM: ₹1,000 cr to ₹50,000 cr ideal. Too small = liquidity risk; too large = mandate constraints

Beyond Returns: Risk Metrics

Metric	What It Tells	Good Range
Standard Deviation	Volatility of returns	Equity: 15-25%; Debt: 1-4%
Sharpe Ratio	Risk-adjusted return	> 0.6 is good
Sortino Ratio	Downside-only risk	> 0.8 is excellent
Alpha	Excess return vs benchmark	> 0% over 5 years
Beta	Sensitivity to market	< 1.0 = defensive; > 1.0 = aggressive
Maximum Drawdown	Worst peak-to-trough fall	< 30% for large-cap; < 50% for small-cap

Direct vs Regular Plans

The single most important fee decision for Indian investors:

Aspect	Regular Plan	Direct Plan
Distributor commission	Yes (built into expense ratio)	NO
Expense ratio (equity)	1.5-2.0%	0.5-1.0%
20-year impact on ₹10L	~₹50-60 lakh corpus	~₹65-80 lakh corpus
How to buy	Bank, IFA, brokers	AMC website, Coin, Kuvera, ETMoney, MFCentral
Advisory	From distributor	Self-directed (or paid SEBI RIA)

Switching from Regular to Direct: Some AMCs allow direct switch within scheme without exit load. Others treat it as redemption + fresh purchase (may attract STCG). Check before switching.

Worked Examples

Example 1: ₹10K SIP in Flexi-Cap, 25 Years

At 13% expected CAGR, SIP value = ₹2.27 crore. Total invested = ₹30 lakh. Wealth gained = ₹1.97 crore.

Example 2: ₹20K SIP, Step-Up 10% Annually, 30 Years

At 12% return. Total invested ≈ ₹3.95 crore. Final corpus ≈ ₹17.7 crore. The step-up gives about 2.5 times the ₹7.06 crore a flat ₹20K SIP would reach.

Example 3: Mixed Portfolio 60-40 Equity-Debt

60% Flexi-Cap (12%) + 40% Short Duration (7%). Blended return ≈ 10%. ₹15K SIP for 25 years = ₹2.0 crore vs ₹2.85 crore in pure equity (12%). Lower volatility, slightly lower return.

More FAQs

What’s the difference between Open-Ended and Close-Ended funds?

Open-ended: Buy/sell at any time at NAV. Most retail funds (95%+). Close-ended: Fixed tenure (3, 5, 10 years); listed on exchange; can trade but at market price (often discount to NAV).

Are mutual funds safe?

Mutual funds are regulated by SEBI under MF Regulations 1996. AMCs are separate legal entities from trustees; investor money is held in a Trust. Even if AMC goes bankrupt, your investments are safe. Performance risk exists (markets can decline) but operational/fraud risk is low.

What is NAV?

Net Asset Value = (Total Assets − Liabilities) / Outstanding Units. Updated daily after market close. Your buy/sell price. NAV alone doesn’t indicate fund quality — focus on returns, expense ratio, and fund manager.

How are mutual fund returns taxed?

Equity funds: 20% STCG (<12mo), 12.5% LTCG (>12mo, above ₹1.25L). Debt funds (post-April 2023): slab rate any time. International funds: debt-equivalent treatment.

Can I switch funds within same AMC?

Yes, via “Switch” feature. But each switch is treated as redemption + purchase — capital gains tax applies. Plan switches around tax-year ends or to harvest gains within ₹1.25L LTCG limit.

What is a fund manager’s role?

Selects securities, manages portfolio allocation within SEBI mandate, executes buy/sell. Top Indian fund managers: Prashant Jain (HDFC), Mahesh Patil (Aditya Birla), Rajeev Thakkar (Parag Parikh), Manish Sonthalia (Motilal Oswal), Sankaran Naren (ICICI Pru).

How are dividends taxed in MF?

Since Budget 2020, dividend income is taxed in investor’s hands at slab rate (TDS 10% if >₹10,000/year). Growth option always preferred for tax efficiency.

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The concept behind the number

This calculator gives you a figure. These pages give you the idea it comes from, the words on the inputs, and the article that works through the decision.

LearnInvestmentsThe concept map this calculator sits inside.GlossaryInvesting and Mutual FundsEvery term on this page, defined in full.ArticleMutual Funds in IndiaSIP, NAV, expense ratios and taxation in one guide.