Etica Money Market Fund Calculator Malaysia

Etica MMF Formula:

\[ FV = Principal \times (1 + \frac{Rate}{12})^{(12 \times Time)} \]

Future Value (FV):

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1. What is Etica Money Market Fund?

The Etica Money Market Fund (MMF) is a Shariah-compliant investment fund in Malaysia that provides investors with a low-risk option for their surplus funds while maintaining liquidity and capital preservation.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

\[ FV = Principal \times (1 + \frac{Rate}{12})^{(12 \times Time)} \]

Where:

\( FV \) — Future Value (MYR)
\( Principal \) — Initial investment amount (MYR)
\( Rate \) — Annual interest rate (in decimal)
\( Time \) — Investment period in years

Explanation: The formula calculates monthly compounding interest over the investment period.

3. Importance of MMF Calculation

Details: Calculating the future value helps investors understand potential returns and make informed decisions about their investments in money market funds.

4. Using the Calculator

Tips: Enter principal amount in MYR, annual interest rate as a decimal (e.g., 0.05 for 5%), and investment period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical return rate for Etica MMF?
A: Returns vary but typically range between 2-4% annually, though past performance doesn't guarantee future results.

Q2: How often are returns compounded?
A: Most money market funds, including Etica MMF, compound returns monthly.

Q3: Is there any risk in investing in MMF?
A: While MMFs are low-risk, they're not risk-free. There's minimal credit and interest rate risk.

Q4: What's the minimum investment period?
A: MMFs typically allow daily withdrawals, but this calculator assumes you'll keep funds invested for the specified period.

Q5: Are returns guaranteed?
A: No, returns are not guaranteed and may fluctuate based on market conditions.