: How to calculate the return from a mutual fund? How do I calculate the return from a mutual fund invested as a monthly SIP of Rs. 5000 over a period of 3 years at a return rate of 20.4% per annum? The projected amount for

I couldn't see the fund in your screenshot, but here is the one from the web link.

The one-year return can be calculated like so.

Also using a formula

a = d ((1 + r)^n - 1)/r

where

a is the future amount
d is the monthly payment (paid at month-end)
n is the number of months
r is the monthly interest rate

The annual interest rate is 14.4%

r = (1 + 14.4/100)^(1/12) - 1 = 0.011274

n = 12
d = 5000

a = d ((1 + r)^n - 1)/r = 63863.84

The same in Excel

The 3 year result is a little out, presumably some rounding inaccuracy

r = (1 + 19.3/100)^(1/12) - 1 = 0.0148146

n = 36
d = 5000

a = d ((1 + r)^n - 1)/r = 235556.95

A 3 year annualised return of 19.26% obtains the website figure, shown below.

r = (1 + 19.26/100)^(1/12) - 1 = 0.0147862

n = 36
d = 5000

a = d ((1 + r)^n - 1)/r = 235431.40

I would guess the interest rate in the calculations is 19.26% but the website shows the figure rounded to one decimal place, as 19.3%.

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The biggest problem is that they are using historical returns, that means that they are using.

1.8% for one year
20.4% for 3 years.

But you aren't modeling a 180,000 investment for three years. You have a 5,000 investment for 36 months another 5,000 for 35 months...

You have to know the interest rates for each of the 36 months....but you don't know them

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Calculating SIP is very easy. You can visit my site easysipcalculator.com/ and enter the required details like monthly investment, no of years you are going to invest and what is the expected return rate.
Home page - enter the details

Then click on calculate,

You will get the projection of return and detailed summary report.
Projected return vs invested capital

pie chart and all the good stuff

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