What is investing?
Setting aside your money now to get more money in the future.You earn an income each month. You set aside some amount for your basic needs as savings. You maintain 3-6 months of expenses in your savings bank account for any contingencies and invest the rest.
If you are a conservative investor you will invest in fixed income securities such as fixed deposits. The amount you invest (Principal) is safe and you get interest on this amount. If you are an aggressive investor you invest in equity. You get a higher return at a higher risk. The amount you invest could double in a short time or even be lost. You may get a higher return than fixed income investments but the risks are high.
How to invest?
You can invest fixed amounts of money every month for a fixed period of time in an equity mutual fund. This is a systematic investment plan (SIP). You can calculate returns you get through an SIP using an SIP calculator.
You may have an investment goal where you may need a few lakhs for your child's college education in 5 years time. How much money you need to set aside now to achieve your investment goal can be calculated using the investment goal calculator.
How an online investment calculator works?
You can easily calculate your investment returns with a high degree of accuracy using the online investment calculator.
This online investment calculator has 2 options:
• Calculate your investment returns yearly.
• Calculate your investment returns monthly
How to calculate investment returns yearly using online investment calculator?
Step 1: You have to fill the amount you want to invest each year by adjusting the slider on the scale of the monthly investment in the investment calculator. You can also fill the amount directly.
Step 2: You fill the rate of return you would like to get. If you are a conservative investor you fill 8-9%, and if you are an aggressive investor you fill 11-12% using the slider on the scale of the expected rate of return in the investment calculator. You can also fill the expected rate of return on your investment directly.
Step 3: You have to choose a period in years which you intend to stay invested. You fill this time period using the slider or directly in the total investment period of the online investment calculator.
Step 4: You have to enter any current investments you hold in the current investments slot. The investment calculator will calculate your returns on this amount as per the expected rate of return you have entered earlier.
What this online investment calculator shows you?
Your investment calculator will give you the future value of your investment. You are also shown the total investment you have made and the total amount your investment has grown to.
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