Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. A SIP calculator may be a tool that helps you identify the returns you'll avail when parking your funds in such investment tools. Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals. SIPs usually allow you to take a position weekly, quarterly, or monthly.
A SIP calculator may be a simple tool that permits individuals to urge a thought of the returns on their open-end fund investments made through SIP. SIP investments in mutual funds became one among the foremost popular investment options for millennials lately.
These mutual fund sip calculators are designed to give potential investors an estimate on their mutual fund investments. However, the particular returns offered by a open-end fund scheme varies counting on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any).
SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future.
Few of the benefits of SIP calculators include –
A SIP plan calculator works on the following formula – M = P × ({[1 + i]n – 1} / i) × (1 + i).
In the above formula –
Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%.
Hence, M = 1,000 X ({[1 + 12%]12 – 1} / 12%) x (1 + 12%).
Therefore, M = Rs. 25,293 (approx.).
The rate of interest on an SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
You can use the SIP amount calculator from within a few clicks.
Just enter the monthly invested amount (the amount for which you have started the SIP for), the number of years for which you want to stay invested, and the expected rate of return.
As soon as you input the value, the calculator will show you the estimated amount you can avail after your investment tenure is complete.
offers the best SIP calculator, which provides the following advantages –
A systematic investment plan calculator ensures that your savings portfolio is as per your requirements and financial needs.
How much can I invest in a SIP?
There is no limit to the amount you can invest in a SIP (minimum investment amount is Rs. 500 per month).
What is the maximum tenure of a SIP?
There is no maximum tenure of a SIP. You can invest as long as you can. The minimum tenure you can go for is 3 years.
Are SIPs similar to mutual funds?
People often tend to think of SIP as either mutual funds or different than a mutual fund. The fact is that SIP is just a style of investment and not a fund/scheme or a stock/investment avenue. It is an investment vehicle to invest periodically in a fund/scheme of your choice.
Can I modify my SIP amount?
Yes, you can anytime check your returns with SIP investment calculator and increase or decrease the SIP amount
Do SIP allows only equity mutual funds investments?
No, you can invest in debt and hybrid mutual funds through SIP.
Can I renew a SIP?
Yes, you can renew a SIP automatically. Companies also give you the option to cancel this auto-renew feature.
Can I pause my investments in a SIP?
Yes, mutual fund companies also provide the option of pausing your SIP investments up for a specified period.
What are the types of SIPs available?
Different types of SIPs are available in the market like –