SIP Calculator
An SIP calculator helps investors to get expected future results based on various factors like invested monetary level, and time of investment. It can calculate results up to a great extent varying upon the condition in expenditure. Potential investors may assume that SIPs and mutual funds are the same. However, SIPs are simply one avenue for investing in mutual funds, with lump-sum investments being an alternative method. The SIP calculator serves as a valuable tool for estimating potential returns when allocating funds to these investment instruments. SIP Calculator involves consistently investing a predetermined amount of money at regular intervals in mutual funds. These intervals can typically span weekly, quarterly, or monthly periods.
What is SIP?
A systematic investment plan (SIP) is a very user-friendly investment market that is usually used by all kinds of people with low and high budgets. People with less than Rs. 500 per month of investment are utilizing this mutual fund investment scheme, and people with more than Rs. 5,000,000 per month are also using this mutual fund investment scheme and getting benefits. SIP is a mutual fund investment scheme that is less likely to experience market fluctuations and is less risky as compared to other market investment schemes. As the return rates are fixed, you can easily predict your return rates using a SIP calculator.
The most impressive thing about the SIP calculators is that you are totally free with the lumpsum calculations. You have to click and enter the mutual fund investment amount and the period of investment and click check the return rate. Sounds so simple. So please do not waste time, and let’s start calculating your return. If you need more clarification about the investment, first calculate all the points you need clarification on and then invest. The SIP calculator helps you better understand the profit rate of your investment. Firstly, you can completely understand the factors affecting SIP mutual funds and then calculate your assets in your SIP calculator by clicking the below link free of cost. Finally, you will get the answers in your mind to start your investment as low as Rs. 100 per day.
What is an SIP Calculator?
The Systematic Investment Plan Calculator-SIP Calculator is an online tool for calculating investment returns in mutual funds, so it is called a SIP Calculator. The users do not have to do manual calculations to calculate their return rates for SIP investments. They have to put simple, straightforward details about their investment, and they can easily calculate their profit rates and analyze important clues about their investment tenure. The great thing about SIP calculators is that you are totally free from lengthy calculations that you do manually. Not only is the SIP calculator free to use, but you can use it unlimitedly anytime you want.
Most importantly, you do not have to create any account or login details. Just open it and use it. The SIP calculator helps you better understand the profit rate of your investment. If you need more clarification about the investment, first calculate all the points you need clarification on and then invest. Firstly, you can completely understand the factors affecting SIP investments and then calculate your investments in your SIP calculator by clicking the below link free of cost.
Finally, you will get the answers in your mind to start your investment as low as Rs.100 per day.
How SIP Calculator Works?
So far, you better understand the usage of SIP calculators very well! Some people are also interested in knowing about the working mechanism of SIP calculators. How SP calculators precisely elaborate the profits and losses of any amount of investment even before starting investing in mutual funds. SIP calculators are specifically built for the pre-acknowledgment of corpus rates at the beginning of investments. For that reason, you have to put two simple details: Mutual fund Investment Amount, deposit duration, expected profit and click ok- you will get the future value of your investment on the spot without making much effort.
The SIP calculator is mainly built to remove the pre-manual calculations of investment, as many investors do before starting any investment. So, SIP calculators have entered the market, and you have to give it some basic details that you know about and then click the button, and you can get your desired calculated data in seconds.
Details you have to put into the SIP calculator:
- SIP Amount
- Rate of return
- Investment period
How to Use SIP Calculator?
Knowing the main points and some important information about the mutual fund investment plan can help you better experience your SIP journey. Using a Systematic Investment Plan Calculator does not require any pre-experience to use. You can even use it from the first day of your learning journey towards mutual fund investments.
There is no difficulty in using an SIP calculator. How to use the SIP calculator step by step Guide:
Step 1: Open the SIP Calculator: You do not have to do much roaming on the internet; search for the SIP calculator, and you will get unlimited SIP tools online in one second.
Step 2: Enter the Monthly Investment (SIP Amount). This is the amount that you are going to invest every month or quarterly (Based on your wish to pay monthly or quarterly).
Step 3: Enter the mutual fund investment period; this is the duration that you are going to pay every month.
Step 4: Provide the expected rate of return at the end of your SIP investment tenure. This is the average yearly mutual fund percentage that you will anticipate in your mutual fund SIP investments.
Step 5: Check the results. The Systematic Investment Plan Calculator will instantly display the results. Too much easy, right? So, let’s calculate your first SIP mutual fund amount.
Systematic Investment Plan-SIP Calculator Formula
The SIP calculator is based on the following formula. You can use this formula to calculate your mutual fund profit manually, but this is too time-consuming as you can get the same result with just one click on the SIP calculator.
FV = P * [(1+r)^n -1] / r
- “FV” is the future value.
- “P” is the monthly investment.
- “r” is the interest rate per month.
- “n” is the total number of months.
Example
For a better understanding, let’s explore the following example of a small investment of 1 1,000 rupees per month.
- SIP Investment Amount: Rs.1,000 (Per Month)
- Expected Return rate: 10%
- SIP Investment Duration: 10 Years
Results:
- Your Total SIP Investment for 10 Years: Rs.1.2 Lacs
- Your Future value on SIP Investment: Rs.2.05 Lacs
Important Note:
- Mutual Fund SIP Calculators are just for general prediction of return rates.
- It is never possible to predict the actual return, but you can get a closer picture of your return rate through SIP calculators.
Types of Systematic Investment Plan Calculator
Systematic Investment Plans come in various types. SIP allow inventors to choose the investment amount as per their pocket. Here are the main types of SIPs:
| SIP Type | Description |
|---|---|
| Equity SIP | This kind of SIP is based on equity. Investors who have high-risk tolerance ability can choose this option. |
| Trigger SIPs | Trigger SIPs are merely based on market conditions. The market decides for users when to sell and when to buy units. |
| Debt SIP | Debt SIPs have lower risk factors than equity SIPs. They are more stable and long-term SIP investment methods. |
| Hybrid SIP | Hybrid SIP investment methods are good for middlemen. They are not too risky nor too easy to get benefits. |
| Top-Up SIPs | Top-up SIPs enable investors to increase their investment amounts after a specific period. Ultimately, they are making more profit than before. |
| Perpetual SIPs | Unlike Top-up SIPs, perpetual SIPs allow users to renew their investment plan on their own, in short, they are not bound to continue or increase their plan periodically. |
| Fixed-term SIPs | As the name shows, Fixed-term SIPs require investors to increase their investment at a predefined date. |
| Flexible SIPs | Flexible SIPs enable the investors to alter the SIP amount based on financial circumstances. This provides adaptability to accommodate variations in investors’ income and expenses. |
How does a Systematic Investment Plan (SIP) Help You?
A Systematic Investment Plan (SIP) offers benefits to investors and it is a popular and effective investment strategy.
You can better understand the SIP calculator with the below-shortlisted diamond points: Let’s explore!
- The SIP calculator helps you to get an exact idea of how frequently you have to invest in your SIP mutual fund.
- SIP Calculator enables you to enter the investment duration at your convenience, like daily, weekly, monthly, quarterly or annually.
- In SIP, you are free to choose any minimum investment amount you wish.
- As per your provided investment amount, the SIP calculator gives you the expected profit amount of the corpus at the end of your investment duration.
- The SIP calculator is only a financial tool that lets you calculate your profit as precisely as no other tool can.
- After calculating your required data from the SIP calculator, you can decide on your mutual fund investment journey.
- The SIP calculator is free to use. You have access to the SIP calculator anytime you want.
- The SIP calculator provides you with the roadmap for your investment journey so that you can analyze whether you fit in the market or not.
- With the use of the SIP calculator, you can see a clear picture of the mutual fund market, and there will be no ambiguity left around.
- You can get a clear-cut vision of your investments and their return rates at the end of mutual fund tenure.
- SIP is very flexible; you can stop, renew, or even change the SIP anytime.
- With prior know-how about profits, you can save yourself from losses, which is more common in the investment world.
Benefits of the SIP Calculator
A mutual fund investment scheme known as an SIP(Systematic Investment Plan) provides its users with a lot of benefits. Some of the main ones are discussed below!
Disciplined Investing
SIP is a disciplined investment method. It allows investors to invest a fixed amount at regular intervals such as monthly. This investment approach prompts financial discipline.
Rupee-Cost-Averaging
The main advantage of SIP investment is the rupee-cost-averaging strategy. This strategy tells you you will buy more units when the prices are low, and you will buy fewer units when the prices are high.
Reduced Market Timing Risk
SIP investments are less dependent on market timings, so the risk factor is totally reduced.
Accessibility for Small Investors
Small investors who are stepping into the world of investment will have to choose SIP investment as investors with limited capital can happily enjoy the whole investment game and earn good profits. Afterwards, you can increase your investment money when you have more money.
Flexibility in Contribution Amounts
The investment amount in SIP investments is much more flexible than lump sum investments. Investors with different financial situations can adopt the SIP investment method.
Goal-oriented investing
Investors who want to achieve specific economic goals will find the SIP investment method the best option. SIP has a goal-oriented nature of investment.
Advantages of SIP Calculator
The best SIP calculator Which Provide the following advantages.
- The SIP Calculator ensures precise financial planning, offering accurate projections for informed investment decisions.
- It facilitates goal-centric investing by quantifying the required SIP contributions, aligning investments with specific financial objectives.
- As a tool for risk management, it empowers investors to navigate market fluctuations confidently by assessing potential returns under different scenarios.
Frequently Asked Question
Conclusion
The SIP Calculator emerges as an indispensable companion for investors navigating the dynamic landscape of Systematic Investment Plans. It goes above more calculation, acting as a strategic guide for financial planning. The SIP Calculator enables investors to make well-informed decisions on their path to wealth accumulation by giving them insights into potential returns and assisting them in matching investment decisions with personal objectives. Utilizing an SIP calculator's accuracy becomes essential when we adopt the methodical approach of SIPs for mutual fund investments in order to secure a stable financial future and achieve financial success.