Making informed decisions is essential in the fast-paced world of equity funds. While technical analysis plays a vital role, financial calculators can be powerful tools in equity investment. This article explores the benefits of these calculators and highlights some critical aspects. This piece will empower investors of all experience levels in their financial journey. So, let's continue reading to understand more about such tools.
What are financial calculators?
These are tools that can help you with various money-related calculations. They come in two primary forms - physical calculators and online or mobile app versions. These calculators can be helpful in a variety of financial scenarios, including:
● Loans and mortgages: You can estimate monthly payments and compare different loan options.
● Investments: They can help you calculate future returns. Additionally, they look into the impact of compound interest and compare different investment options.
How do they help?
The financial calculator can simplify complex financial formulas and make it easier to understand your money management. This can help you make more informed decisions about your money. Some advantages of such tools are listed below:
Goal setting and planning
Financial calculators can help you define your investment goals. For example, whether it's saving for retirement or building wealth over time. You can understand the future outcomes by inputting factors like the desired investment amount and expected return rate.
Risk assessment
These calculators can help you assess various investment options' potential risks and returns. You can make the right decision by comparing different stocks based on historical data and projected growth rates.
Understanding key metrics
These tools can help you calculate and understand essential data like compound interest or IRR. Understanding these metrics allows you to evaluate your investments' costs and benefits.
Developing investment discipline
Calculators can be used to create a personalised investment plan and track your progress. This can help you stay disciplined with your contributions and motivated towards your financial goals.
Essential financial calculator functions for equity investors
Equity Link saving scheme
This tool calculates the maturity value of an investment in ELSS funds. These online tools assist investors in evaluating potential profits and tax savings. It can be comprehended as a tax savings product designed to provide investors the opportunity to participate in stock markets. It helps them make informed decisions on the amount to be invested in such funds.
Compound annual growth rate calculator
The CAGR is a financial tool that determines the annual growth of an investment. It is commonly used in business analysis to assess the performance of projects over time. The online calculator provides a quick and convenient way to determine the growth rate of an asset by using compound interest. Such tools help investors assess the performance and potential of their investments. Additionally, it helps them in setting realistic expectations for future returns. Such features allow individuals to plan their financial goals more effectively and make better choices.
Systematic investment plan calculator
The SIP tool helps investors understand the total amount they can gain over time by investing in a mutual fund. This calculator helps project returns and investment value over time through SIP. Such projections assist in making essential decisions for financial planning. This is a disciplined way of investing in mutual funds. Under this scheme, an individual can contribute a fixed amount of money at regular intervals. The primary purpose of such investment is to build wealth over time by using compound interest.
Fixed deposit calculator
It is a free and accessible tool that helps you determine the maturity amount of your FD. With the help of such a calculator, you can compare the returns and choose the right plan for you. This tool helps you to take a proactive approach to financial planning and create an informed investment path. Ultimately, it serves as a financial compass, enabling individuals to make strategic investment decisions.
Lumpsum calculator
Such tools help you estimate the future value of your one-time investment. They assist in financial planning and decision-making. This calculator is particularly beneficial for individuals considering one-time investments. For example, they may be considering investing in stocks and bonds or other assets. By providing estimates, this tool empowers investors to assess various plans and make informed choices. Hence, it becomes a versatile tool for anyone looking to maximise their investments.
National Pension Scheme calculator
NPS Calculator is a tool that is used to calculate the retirement savings and monthly pension a person can generate after retiring. This system was introduced in India to encourage investors to save up for their golden years. It assured them of a steady pension after they retired from their jobs.
Mutual funds calculator
This tool helps investors estimate the value of their MF investments. This tool also lets you choose whether to invest in a SIP or lumpsum capital. This calculator will assist you in evaluating the returns of both schemes and help you choose the right one.
The best financial calculator in the country: Motilal Oswal
There are several reasons why you might consider using their calculators. Firstly, they offer a user-friendly interface that makes evaluations quicker and more accessible. If you are interested in SIPs, Motilal Oswal offers a specific SIP calculator. This can help understand potential returns on investments with mutual funds. Moreover, this calculator allows you to compare returns for different investment periods and interest rates.
Summing up
Financial calculators can be a game changer for equity investors. You can make informed decisions and set realistic goals by leveraging their functionalities. Motilal Oswal's popular online tools can help you track your progress towards financial success if you are willing to use a free calculator. So, if you are tired of guesswork, you can take control of your equity funds with the power of online calculators today!
Disclaimer: This content is part of a marketing initiative. No TNIE Group journalists were involved in the creation of this content.
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