Knowledge Base

Mutual Fund Returns

XIRR is used for SIP returns; CAGR for lumpsum

Direct plans have 0.5-1.5% lower expense ratio than Regular plans — choose Direct.

Past performance does not guarantee future results — check consistency over 3, 5, 10 year periods.

Large-cap funds: 10-12% CAGR. Mid-cap: 12-15%. Small-cap: 14-18% (with higher risk).

Expense ratio matters: 1% difference over 30 years reduces corpus by ~25%.

Use rolling returns (not point-to-point) for more reliable performance evaluation.

Pro Tip

Don't chase last year's topper. Pick funds with consistent top-quartile performance across market cycles.

Mutual Fund Returns - Complete Guide

Everything you need to know about Mutual Fund Returns and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

XIRR is used for SIP returns; CAGR for lumpsum

Key Concepts & Rules

Direct plans have 0.5-1.5% lower expense ratio than Regular plans — choose Direct.

Past performance does not guarantee future results — check consistency over 3, 5, 10 year periods.

Large-cap funds: 10-12% CAGR. Mid-cap: 12-15%. Small-cap: 14-18% (with higher risk).

Expense ratio matters: 1% difference over 30 years reduces corpus by ~25%.

Use rolling returns (not point-to-point) for more reliable performance evaluation.

Expert Strategy

Don't chase last year's topper. Pick funds with consistent top-quartile performance across market cycles.

How to use this Calculator?

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3. Check the breakdown table for year-by-year projections.
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