To grow your money wisely as possible, a structured investment plan, or SIP, enables you to make tiny investments in mutual funds at regular intervals. An online tool called a SIP calculator can assist you in estimating the return from your SIP investment. Use our SIP calculator to find out how often your investment could increase if you invest today.
What is SIP?
A predetermined sum of money is invested in a mutual fund plan according to a predetermined schedule under a systematic investment plan, or SIP. You select the plans you want to invest in and the amount and SIP date. Planning is possible for various life objectives, including retirement, retirement income, overseas travel, vacation house, etc.
What is SIP Calculator?
Inflows into mutual funds through systematic investment plans (SIPs) now total approximately Rs. 8,500 crores monthly. The SIP AUM represents more than 40% of the total AUM of the equity fund sector. The mutual fund SIP calculator aids in your estimation of the potential returns from a SIP. There are two different outputs from the SIP calculator.
First, it explains how much your SIP would increase over time, assuming a specific rate of return. The MF calculator SIP also shows you how much monthly SIP investment you need to make to attain your target amount for your financial goals.
The SIP calculator is a two-way tool that assists you in estimating the goal amount in both directions. The SIP calculator provides the goal amount or the target SIP saving amount per month.
How Does SIP Calculator Work?
SIP calculators use the compound interest formula to calculate possible returns. The calculator calculates the prospective returns while accounting for the number of occasions compounding is relevant. The SIP calculator asks for the monthly contribution amount, the years the investment will last, and the estimated SIP return percentage.
The maturity amount and wealth to be earned from the mutual fund investments will both be calculated automatically by the online SIP calculator.
Benefits of the SIP Calculator
Calculate the maturity amount: Using the SIP calculator, investors can predict their potential returns over the course of their investment. Knowing how much the investor hopes to make at the end of their investment period aids in determining the monthly investment amount.
Simple to use: To estimate returns, one must provide the necessary information. The calculator also spares investors’ time from performing complex computations. The calculator offers instant estimates for the maturity and monthly investment amounts.
Amount based on growth scenarios: The SIP calculator calculated the maturity amount using three different growth scenarios. Based on above-average, average, and below-average returns are the three growth possibilities. As a result, prospective investors can select the scenario that best suits their financial needs and begin investing.
Step Up: In those other words, increasing SIPs will help you reach your financial objectives more quickly. Additionally, the maturity amount calculation table format contains step-up information.
Find the best investment possibilities: We go far beyond other calculators, which show you the minimum monthly commitment amount or the estimated future worth of your investments. In keeping the promise to give you access to this tool, we give you a list of funds that could assist you in achieving your financial objectives.
Final Thoughts
A SIP calculator has two applications. First, based on tenure and yield estimates, you can use it to calculate the corpus you could build with monthly SIP contributions. Second, using the SIP calculator, you can calculate the required monthly SIP amount based on the goal corpus. Your essential presumptions, such as the rate of return and the tenure, must be ready and well-thought-out.
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