Mutual Fund Calculator: Earning more on a lesser amount of investment is what an investor wants. To address this demand of the investors, mutual fund companies coined the systematic investment plan (SIP) where an investor can invest in monthly mode with a small amount. This SIP mode suits those people who don't have a lump sum surplus amount to invest but they have huge investment goals. According to the tax and investment experts, equity investments are such an option where one can expect to gain higher but for that, the investment has to be on a long-term horizon. they are of the opinion that if the investment is for 20 years or more, one's returns can go up to 15-18 per cent.

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Speaking on what their mutual fund calculator speaks for equity mutual fund when an investment is done for long-term Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "Equity mutual funds give at least 12 per cent return in mid-term. However, if the investment is for the long-term horizon, it may go up to 15 or may 1-2 per cent more." Jhaveri said that equity mutual fund suits those people who can't afford to invest directly in the stock market. He said that equity mutual funds are better suited for those who have a mid-level risk appetite. Jhaveri advised investors to take the SIP mode of the equity mutual fund as it helps develop and ocean through the water tips.

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Assuming 15 per cent return on the SIP of Rs 4,500 having time-horizon 20 years, the mutual fund calculator reveals that one would get Rs 49,22,682 as maturity amount at the time of redemption. The investor has invested Rs 10,80,000 during these 20 years. After 20 years, Rs 49,22,682 would surely an amount that can help the investor meet one's long-term goal like higher education of one's child or child marriage and the investor arranged this amount through Rs 4,500 per month or Rs 150 per day, which he or she can save by avoiding any of the unwanted monetary outgoes from its daily habits.

What's the trick

However, SEBI registered tax and investment expert Jitendra Solanki said that one can get more if he or she uses this trick while investing in SIP. Solanki said that one gets a salary increase every year. So, he or she should increase one's monthly SIP in the same sync annually citing, "One would definitely get around 10 per cent annual salary hike and if the investor does the same with one's SIP, he or she can accumulate a huge amount at the time of redemption in same 20 years."

Assuming the same Rs 4,500 SIP for 20 years with 15 per cent returns but an annual step-up of 10 per cent, the mutual fund calculator give Rs 82,03,149 maturity amount at the time of redemption. During this 20 year, the investor has invested Rs 30,92,850. So, by taking a step-up rate of 10 per cent per annum, the same Rs 150 per day initial investment can grow up to Rs 82,03,149, which is more than 66 per cent from Rs 49,22,682 — the maturity amount without step-up.