Why this calculator is important
This calculator matters because mutual funds decisions usually affect cash flow, insurance cover, tax planning or long-term wealth. A structured result helps you see the gap, the yearly progress and the action required before you commit money.
What you gain from the result
You get a usable estimate, a year-wise progress chart, input summary, downloadable PDF and a clear next step for review. The output is built for practical planning, not only quick entertainment.
How to read the year-wise chart
The bar chart separates your contribution, growth, gap or protection value by year. Use it to see whether the plan depends too much on future returns, too little on current savings, or an unrealistic time frame.
Frequently Asked Questions
Is mutual fund really better than FD?
Mutual funds have historically delivered higher returns than FDs over long periods (5+ years). However, MF returns are not guaranteed while FD rates are fixed. For goals under 3 years, FD may be safer. For 5+ year goals, equity mutual funds have typically outperformed FDs significantly.
How is FD return calculated?
FD return is calculated using compound interest: FV = P × (1 + r)^n, where P is the principal, r is the annual interest rate and n is the number of years. Most banks compound quarterly, but this calculator uses annual compounding for fair comparison.
What is the tax difference between FD and mutual fund?
FD interest is taxed as income — added to your total income and taxed at your slab rate. Long-term capital gains on equity mutual funds (held 1+ year) are taxed at 12.5% above ₹1.25L per year. This makes mutual funds more tax-efficient for higher-income investors.
How much should I invest in FD vs mutual funds?
A common approach: keep 3–6 months expenses in FD as emergency fund. Invest remaining long-term savings in mutual funds. The split depends on your age, risk tolerance and goals. Use the Risk Profiler on Hatlet Ventures to find your ideal allocation.
Can I start mutual funds with a small amount?
Yes. Many mutual funds allow SIP starting from ₹500 per month. You do not need a large lump sum. Starting early with small amounts allows compounding to work over time, often resulting in much better outcomes than waiting to accumulate a large FD.
Want help reviewing your SIP result?
Our team at Hatlet Ventures can review this result against your real income, goals, insurance gaps and tax situation — for free.
Sri Balaji is the founder of Hatlet Ventures, a NISM-certified, AMFI-registered mutual fund distributor and IRDAI-licensed insurance advisor based in Tiruppur, Tamil Nadu. He helps families with SIPs, mutual funds, insurance planning, tax-saving investments and long-term financial planning.