SIP Calculator – Systematic Investment Plan Calculator

SIP Calculator, short for Systematic Investment Plan Calculator, aids prospective investors in discerning the distinction between SIPs and mutual funds. While some may confuse the two, SIPs represent a method of investing in mutual funds, alongside the lump sum approach. This tool assists in evaluating the potential returns from parking funds into such investment avenues. Systematic Investment Plan (SIP) entails investing a predetermined amount in mutual funds at consistent intervals, typically offering investment options on a weekly, quarterly, or monthly basis.

What is a SIP Calculator?

A SIP Calculator is a straightforward tool enabling individuals to gauge the potential returns from their mutual fund investments through SIP. Recently, SIP investments in mutual funds have gained significant popularity among millennials.

These mutual fund SIP calculators are specifically designed to offer potential investors an estimation of their mutual fund investments. However, it's important to note that the actual returns from a mutual fund scheme can vary due to various factors. The SIP calculator doesn't provide clarification regarding exit load and expense ratio (if applicable).

This calculator computes the wealth gain and anticipated returns for your monthly SIP investment. It provides a rough estimate of the maturity amount for any given monthly SIP, based on a projected annual return rate.

How can a SIP return calculator benefit you?

According to numerous mutual fund experts, SIPs offer a more advantageous method of investing funds compared to a lump sum amount. Engaging in SIPs aids in fostering financial discipline and cultivating a savings habit that can prove beneficial in the future.

An online SIP calculator serves as a valuable tool, providing insight into the estimated returns you can expect after the investment tenure.

Some of the advantages of SIP calculators include:

  • Assisting in determining the desired investment amount.
  • Providing information on the total invested amount.
  • Offering an estimated value of the anticipated returns.

How do SIP calculators operate?

A SIP plan calculator functions based on the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i).

In this formula:

  • M represents the amount received upon maturity.
  • P denotes the invested amount at regular intervals.
  • n indicates the number of payments made.
  • i signifies the periodic rate of interest.

For instance, if you intend to invest Rs. 1,000 per month for 12 months at a periodic interest rate of 12%:

The monthly rate of return would be 12%/12 = 1/100 = 0.01.

Therefore, M = 1,000 × ({[1 + 0.01]^12 – 1} / 0.01) × (1 + 0.01),

resulting in approximately Rs. 12,809 in a year.

The rate of interest on a SIP may vary according to market conditions, potentially impacting the estimated returns.

How to utilize AssetPlus's systematic investment plan calculator?

You can easily utilize the SIP amount calculator provided by AssetPlus with just a few clicks.

Simply enter the monthly invested amount (the sum for which you've initiated the SIP), the duration you intend to remain invested, and the expected rate of return.

Once you've inputted the values, the calculator will promptly display the estimated amount you could receive at the conclusion of your investment period.

Advantages of employing AssetPlus's systematic investment plan calculator:

AssetPlus offers an exceptional SIP calculator, which provides the following benefits:

  • Facilitates planning of investments based on the amount and duration.
  • Assists in estimating the total value of investments by the end of your SIP tenure.
  • Provides accurate results, saving time compared to manual calculations.
  • Ensures that your savings portfolio aligns with your specific requirements and financial objectives.

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