If I invest into a mutual fund for three years at $100 per month, almost how much would be my return?
Answers:
It depends on the expected return of the fund you want to buy. Lets voice it is a S&P 500 index fund. Its historical total return (i.e. near distributions reinvested) have be around 11,8% per year, as can be see here:
http://etf-investing.indicart.com.ar/res...
Substract the fund's expenses, roughly speaking 0,3% for example if it is a low cost no-load index fund. That would breed 11,5%. Your period are months, so to convert that to months we hold to embezzle the 12th root of (1+0,115) minus 1, which is 0,91%.
Now use this formula:
good point at completion = monthly contributions * ((1+return)^(periods+1)-1) / return
That would be:
helpfulness at lapse = 100 * ((1+0,0091)^(36+1)-1) / 0,0091 = 4376
That's the amount of dollars we may expect your investment to cost at the extremity of the three years. The individual problem is that, usually, in that are minimum initial purchases for these kind of funds, for example of 3000 dollars, so you would have need of to invest that caring of money to start. You wouldn't if you bought ETFs instead of mutual funds, but don't incorporate money every month contained by that armour, because transaction costs would pinch away your profits and more.
Also remember near are taxes to wage on your gain (unless your investment is in a tax-sheltered account).
Hope it help.
Depends on how much the individual financial institution is ready to clash.
Mutual funds may fluctuate in price, unless near is a guaranteed return, approaching beside a bond.
There are tons of investment calculators out in that to forecast how much you would enjoy then. But truthfully, three years is not a long time to agree to your money grow.
http://www.ici.org/cgi-bin/calcs/sav14.c...
Put in the monthly amount and you'll want to guess the rate of return. Pick the 10 year average for the mutual funds you are looking at to plug into the formula.
Also, morningstar.com list various funds by type and schedule who much a 10K investment would be worth after that to bestow you an thought of returns.
it depends what thoughtful of mutual fund you want and obviously on the rate of interest.
heres an example for you... if you where on earth to invest in a mutual fund next to an initial starting amount of $1000 at 10% of interest beside a $100 monthly contribution... within 3 years you would own a total of 5,700.20... not fruitless at adjectives
With a total of $3600 of monthly contributions, and 10%, you would own $4210.31. This give you a return of $610.31 over your monthly contributions.