## What is EMI?

EMI Calculator : Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the (Equated Monthly Installment) would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly (Equated Monthly Installment) -EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.

Where:

E is EMI (Equated Monthly Installment)

P is Principal Loan Amount

r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per Annam, then r = 10.5/12/100=0.00875)

n is loan term / tenure / duration in number of months

For example, if you borrow ₹10,00,000 from the bank at 10.5% annual interest for a period of 10 years (i.e., 120 months), then (Equated Monthly Installment)-EMI = ₹10,00,000 * 0.00875 * (1 + 0.00875)120 / ((1 + 0.00875)120 – 1) = ₹13,493. i.e., you will have to pay ₹13,493 for 120 months to repay the entire loan amount. The total amount payable will be ₹13,493 * 120 = ₹16,19,220 that includes ₹6,19,220 as interest toward the loan.

Computing (Equated Monthly Installment) EMI for different combination of principal loan amount, interest rates and loan term using the above (Equated Monthly Installment) EMI formula by hand is time consuming, complex and error prone. Our (Equated Monthly Installment) EMI calculator automates this calculation for you and gives you the result in a split second along with visual charts displaying payment schedule and the break-up of total payment.

## Here list of EMI Calculator website : Calculate your EMI for Home loans, Personal Loan, Car Loan

EMICalculator.net  : This is No.1 website for EMI Calculator – Calculate Equated Monthly Installment (EMI) for Home Loan / Housing Loan, Car Loan & Personal Loan in India (with interactive charts)

HDFC BANK (EMI Calculator) :- India rank 2nd for Use the interactive home loan EMI calculator to calculate your home loan EMI. Get all details on interest payable and tenure using the home loan calculator.

ICICI Bank (EMI Calculator) : India 3rd mostly use by user from ICICI Bank EMI Calculator. Use Home Loan, Personal loan, Car Loan, FD EMI Calculator to estimate your Home Loan EMI and also analyse interest and outstanding principal repayment. Instantly check ICICI Bank  Loan EMI Calculator to calculate your monthly payment and see what the total interest charges would be.

Bankbazaar Home Loan EMI Calculator: is an online user friendly tool that allows you to calculate your home loan installments easily. All you need to do is enter the the amount of the loan you wish to borrow and the tenure of the loan.Click on ‘Calculate’ to know the best home loan rates that can be availed by you. Also access the amortization details after calculating your home loan EMIs.”

SBI Bank (EMI Calculator) :  Use this flexible online Personal Loan EMI Calculator to arrive at the EMI you are comfortable with. The calculator helps you to plan your borrowings. Calculate Equated Monthly Installment (EMI) for Home Loan / Housing Loan, Car Loan & Personal Loan in India, Home Loan EMI Calculator.

## What is Mutual funds ?

The amount deposited by a large number of investors is called a mutual fund, which is put into a fund. The fund manager uses his investment management skills to invest this money in various financial instruments. Mutual funds invest in many ways, which determines their risk and returns.

When many investors invest in a fund together, the fund is divided into equal equal parts called unit or unit unit.

For example, suppose some friends want to buy a piece of land together. The price of a piece of land of hundred square yards is one lakh rupees. Now if you divide this fund into units of ten rupees then 10,000 units will be formed. Investors can buy as many units as they wish, according to their investment capacity. If you have only one thousand rupees for investment then you can buy a hundred units. In the same proportion, you too became the owner of that investment (land).

Now suppose that the value of this one lakh investment has increased to one hundred and twenty thousand after one month. Now, according to this investment, the unit price will be deducted, then the unit of ten rupees has now become twelve rupees. The investor who bought hundred units in one thousand rupees, according to the twelve rupees per unit, now his investment (100×12) has been Rs. 1200.

Based on the amount invested by you as an investor, how many units you own. Therefore, an investor can also be known as a unit holder. In addition to the other income earned from this, the increase in the value of the investment is reduced to the proportion of the expenditure, the burden and taxes, after dividing the units with the number of units divided by the investors / unit holders.

With this, you can see that an investor who can not make big investments, has the facility of investing in small units.

Apart from this, the biggest benefit of Mutual Fund MF is that an investor who does not have much information about the market leaves his investment in the hands of experts. These experts determine where, how and when to invest.

Mutual funds invest in many ways. The most prominent bonds and stock markets are. Apart from this, you can invest in Gold or any other commodities. There are several types of funds which are known as their investment. The main ones are Debt, Equity and Balanced Fund. The highest variety is found in equity funds. After moving forward in the Mutual Fund in Hindi, we will learn about all these in different detail. Also learn what the NAV is and how it is counted. 