What is a good mutual fund return in India?

Historical long-term mutual fund returns in India: Large-cap equity funds 10-12% CAGR over 10 years. Mid-cap equity funds 13-17% CAGR. Small-cap equity funds 15-20% CAGR. Index funds (Nifty 50) approximately 12% CAGR. Debt funds 6-8% CAGR. These are historical averages and not guaranteed future returns.

What is the difference between CAGR and XIRR for mutual funds?

CAGR (Compound Annual Growth Rate) works for single lump sum investment where money is invested once. XIRR (Extended Internal Rate of Return) is used for SIP where multiple investments are made at different dates and each earns different returns. XIRR gives the true annualised return for SIP investments and is more accurate than simple CAGR for periodic investments.

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Mutual Fund Returns Calculator India — CAGR & SIP Returns

Calculate lump sum CAGR and monthly SIP returns. Compare both modes, view real returns after inflation, and see year-wise wealth growth.

SIP Power: ₹10,000/month for 20 years at 12% CAGR = ₹99.9 lakh corpus (invested ₹24L, returns ₹75.9L). | Lump Sum: ₹10 lakh for 20 years at 12% = ₹96.5 lakh. Start early — 10 extra years nearly triples the corpus.

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Mutual Fund Calculator

Investment Details

Lump Sum Amount

₹

Monthly SIP Amount

₹

Expected Return: 12% CAGR

6% (Debt)12% (Large)18% (Small)25%

Investment Period: 10 years

1 yr10 yr20 yr40 yr

Inflation Rate: 6% (for real return)

Fund Category Benchmarks

📊 Mutual Fund Category Returns — Historical Reference

Historical CAGR ranges for major mutual fund categories in India over 10-year periods. Use as benchmark for your return assumptions.

Fund Category	5-Year CAGR	10-Year CAGR	Risk Level
Liquid / Overnight Funds	5–6%	6–7%	Very Low
Debt / Short Term Funds	6–8%	7–8%	Low
Large Cap Equity Funds	10–14%	10–12%	Moderate
Index Funds (Nifty 50)	12–15%	11–13%	Moderate
Flexi Cap / Multi Cap	12–16%	12–14%	Moderate-High
Mid Cap Equity Funds	15–20%	13–17%	High
Small Cap Equity Funds	16–25%	15–20%	Very High

Historical returns do not guarantee future performance. Past returns are for reference only. Consult a financial advisor before investing.

📖 How to Use This Calculator

1
Choose Lump Sum, SIP or CompareLump Sum for one-time investment. SIP for monthly recurring. Compare mode shows both side by side for the same rate and period.
2
Enter Amount and Set Return RateEnter investment amount. Use the category benchmarks to set a realistic return rate — 12% for large cap, 14–16% for mid cap, 18%+ for small cap (higher risk).
3
Set Investment PeriodLonger periods dramatically increase corpus due to compounding. See the year-wise table to understand how wealth builds over time.
4
Check Real Return After InflationThe real CAGR shows purchasing power growth after inflation. A 12% return at 6% inflation gives only 5.66% real return — important for retirement planning.

✅ Why Use This Calculator

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Lump Sum & SIP

Calculate both modes and compare them at the same rate and period.

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Wealth Ratio

See how many times your investment multiplies — the true measure of compounding power.

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Real Returns

Inflation-adjusted CAGR shows actual purchasing power growth of your investment.

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Year-Wise Growth

See corpus growth year by year to understand the power of staying invested longer.

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Category Benchmarks

One-click presets for debt, large cap, mid cap and small cap historical return rates.

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No data stored or sent. All calculations happen in your browser.

❓ Frequently Asked Questions — Mutual Fund Returns

What is CAGR in mutual funds and how is it calculated?+

CAGR (Compound Annual Growth Rate) is the annualised return for a lump sum investment. Formula: CAGR = (Ending Value / Beginning Value)^(1/Years) − 1. Example: ₹1 lakh grows to ₹3.1 lakh in 10 years → CAGR = (3.1)^(1/10) − 1 = 12%. CAGR is accurate for lump sum. For SIP, use XIRR which accounts for multiple investment dates.

What is a realistic expected return for mutual funds in India?+

Realistic long-term return expectations in India: Liquid/debt funds 6–8%. Large-cap equity or index funds 10–12%. Flexi-cap/multi-cap 12–14%. Mid-cap funds 13–17%. Small-cap funds 15–20%. These are 10-year historical averages. Shorter periods see higher volatility. Higher expected return = higher risk. Never assume small-cap returns for goal planning.

Is SIP better than lump sum investment?+

Neither is universally better. SIP benefits: rupee cost averaging (buy more units when markets fall), habit of regular saving, lower timing risk, suitable for salaried investors. Lump sum benefits: entire amount compounds from day one, better when markets are low, suitable when you have a large corpus ready. For most retail investors, SIP is more practical and less stressful.

How is mutual fund return taxed in India?+

Equity MF held less than 12 months: STCG at 20%. Equity MF held 12+ months: LTCG at 12.5% on gains above ₹1.25L annual exemption. Debt MF (all holding periods): taxed at income slab rate. For SIP, each instalment has its own holding period — systematic withdrawal plan (SWP) makes LTCG benefit complex to calculate manually.

What is the power of compounding in mutual funds?+

₹1 lakh at 12% CAGR: After 10 years = ₹3.1 lakh (3.1×). After 20 years = ₹9.6 lakh (9.6×). After 30 years = ₹29.9 lakh (29.9×). The last 10 years contribute more growth than the first 20 combined. This is why starting early and staying invested longer is more important than picking slightly better funds.

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