Mutual Fund Returns Calculator

Historically: Large Cap Index funds average 12-13% CAGR over 10+ years. Mid Cap funds: 14-16%. Small Cap funds: 15-18% (with higher risk). Debt funds: 6-8%. Balanced/Hybrid: 9-11%. A 'good' return beats inflation (6-7%) significantly — anything above 10% for equity funds is considered acceptable over long periods.

Expense ratio is the annual fee charged by the fund. A 1% expense ratio on a ₹10L portfolio costs ₹10,000/year. Over 20 years, the difference between 0.5% (direct/index) and 2% (regular/active) expense ratio on ₹10K/month SIP at 12% returns is approximately ₹12-15 lakh. Always prefer Direct Plans with lower expense ratios.

Equity Mutual Funds: Long-term (held >1 year) — 12.5% tax on gains above ₹1.25 lakh per year. Short-term (<1 year) — 20%. Debt Mutual Funds: Taxed at your income tax slab rate regardless of holding period (no LTCG benefit since April 2023). Always hold equity MFs for 1+ years and plan redemptions to stay within the ₹1.25L LTCG exemption.

Historically, lumpsum beats SIP about 65-70% of the time because markets trend upward. However, SIP reduces timing risk (rupee cost averaging) and is easier for salaried individuals. Best strategy: combine both — invest lumpsum when markets drop 10%+ (from highs), maintain regular SIP for discipline.