How are mutual fund returns calculated?

Mutual fund returns are calculated as CAGR (Compound Annual Growth Rate): CAGR = ((Final Value ÷ Initial Value)^(1÷Years)) − 1 × 100.

What is a good mutual fund return in India?

Historically, large cap funds return 10-12% CAGR, mid cap 13-16%, and small cap 15-18% over 10+ years. However, past returns don't guarantee future performance.

What is NAV in mutual funds?

NAV (Net Asset Value) is the per-unit price of a mutual fund. NAV = (Total Assets − Liabilities) ÷ Number of Units. Funds declare NAV daily.

How much should I invest in mutual funds monthly?

A common rule: invest at least 20% of your monthly income. For retirement corpus, use the 50-30-20 rule: 50% needs, 30% wants, 20% savings/investments.

Are mutual fund returns taxable?

Yes. Equity funds: gains above ₹1 lakh held over 1 year taxed at 10% (LTCG). Short-term gains taxed at 15%. Debt funds: as per income tax slab.

📈 Mutual Fund Returns Calculator

Calculate Lump Sum & SIP Growth — With Real Inflation-Adjusted Returns

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CAGR

📊 Expected Returns by Fund Category

Category	Conservative	Base Case	Optimistic
Nifty 50 Index Fund	9%	12%	15%
Large Cap Active	9%	11%	14%
Multi/Flexi Cap	10%	13%	16%
Mid Cap	10%	14%	18%
Small Cap	8%	15%	22%
Debt Fund (Short)	6.5%	7.5%	8.5%
Balanced Advantage	9%	11%	13%

FAQs

Is 12% CAGR realistic for equity mutual funds in India?

Yes — the Sensex has delivered approximately 14–15% CAGR over 30 years. Nifty 50 index funds typically deliver 11–13% CAGR over long periods. For diversified equity funds (flexi/multi cap), 12% is a conservative base case. Past returns don't guarantee future, but India's growth story supports long-term equity investing.

What is LTCG tax on mutual fund returns?

Equity funds held 12+ months: 12.5% LTCG on gains above ₹1.25 lakh/year. Debt funds: taxed at your income slab rate regardless of holding period (from April 2023 onwards). Plan redemptions to harvest ₹1.25L gains tax-free annually from equity funds.