SIP Calculator
Total Investment: ₹
Expected Returns: ₹
Total Maturity Amount: ₹
SIP Calculator – Systematic Investment Plan Calculator
Welcome to the SIP Calculator at FinanceResources.in, your go-to tool for estimating returns on your mutual fund investments through Systematic Investment Plans (SIP). While SIPs and mutual funds might seem synonymous, SIPs represent a method of investing in mutual funds, offering an alternative to lump sum investments. Our SIP calculator is designed to empower you with insights into the potential returns of parking your funds in these investment tools.
What is a SIP Calculator?
The SIP calculator is a user-friendly tool that provides individuals with an estimate of the returns on their mutual fund investments made through SIP. As SIP investments gain popularity, especially among millennials, this calculator becomes an invaluable resource. It offers a rough estimate of the maturity amount for your monthly SIP, based on a projected annual return rate.
It’s important to note that the actual returns from a mutual fund scheme can vary due to factors like exit loads and expense ratios, which are not accounted for in the SIP calculator.
How can a SIP return calculator help you?
SIPs, considered a more lucrative mode of investing compared to lump sum amounts, contribute to financial discipline and savings habits beneficial for the future. The SIP calculator provides an estimate of the returns you might earn after the investment tenure.
Key benefits of using SIP calculators include:
- Assisting in determining the investment amount.
- Tracking the total amount invested.
- Offering an estimated value of the returns.
How do SIP calculators work?
The SIP plan calculator operates on the following formula:
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
In this formula:
- M is the amount upon maturity.
- P is the invested amount at regular intervals.
- n is the number of payments made.
- i is the periodic rate of interest.
For example, if you invest ₹1,000 monthly for 12 months at a periodic interest rate of 12%, the monthly rate of return will be 12%/12 = 1/100 = 0.01. The formula will be applied accordingly to estimate the maturity amount.
The interest rate on SIPs may fluctuate with market conditions, affecting the estimated returns.
How to use FinanceResources.in SIP Calculator?
Utilizing our SIP calculator is simple and quick. Enter the monthly invested amount, the investment tenure in years, and the expected rate of return. The calculator will provide you with an estimated amount after your investment tenure is complete.
Advantages of using FinanceResources.in SIP Calculator
Our SIP calculator at FinanceResources.in offers several advantages:
- Helps plan your investment based on amount and tenure.
- Computes an estimation of the total investment value at the end of your SIP tenure.
- Provides accurate results, saving time compared to manual calculations.
Using the SIP calculator ensures your savings portfolio aligns with your financial requirements and needs.
FAQs
The amount you can invest in a Systematic Investment Plan (SIP) varies depending on the mutual fund company and the specific scheme you choose. Typically, the minimum investment amount can range from as low as ₹500 to ₹1000 per month.
The maximum tenure of a SIP is usually not fixed. You can continue investing through SIPs for as long as you desire, provided the mutual fund scheme allows it. Some investors opt for SIPs with tenures ranging from a few months to several years.
SIPs (Systematic Investment Plans) are a mode of investing in mutual funds. They involve investing a fixed amount regularly (usually monthly) into a mutual fund scheme of your choice. So, SIPs are a method of investing in mutual funds rather than a separate investment product.
Yes, you can modify your SIP amount. Many mutual fund companies allow investors to increase or decrease their SIP amount as per their convenience. You may need to fill out a SIP modification form or make the changes online through the mutual fund company’s website or app.
No, SIPs are not limited to equity mutual funds only. You can invest in a variety of mutual fund categories through SIPs, including equity funds, debt funds, hybrid funds, and more. The choice of mutual fund type depends on your investment goals, risk tolerance, and investment horizon.
There are several types of SIPs available to investors, including:
- Equity SIPs
- Debt SIPs
- Hybrid SIPs (Investing in both equity and debt instruments)
- Sectoral SIPs (Investing in specific sectors)
- Top-up SIPs (Increasing the SIP amount at regular intervals)
- Flexible SIPs (Allowing flexibility in investment amounts and frequencies)
SIPs do not have a specific renewal process. However, if you wish to continue investing in a particular mutual fund scheme through SIP after its tenure ends, you can usually set up a new SIP for the same scheme.
Yes, many mutual fund companies offer the option to pause or temporarily stop your SIP investments. This feature is often referred to as “SIP Pause” or “SIP Suspension.” You can resume your SIP payments later as per your convenience. Do note that the availability of this feature may vary depending on the mutual fund company and the scheme.