SIP Calculator

SIP Calculator tool helps you to calculate expected returns on your SIP investment. This SIP Calculator will give you an overview of how much corpus one will generate with particular monthly investment for a given period. SIP or Systematic Investment Plan allows you to invest for particular intervals of monthly or quarterly investment mainly offered by Mutual Funds. Start calculating your SIP returns with this easy to use SIP Calculator.

SIP Amount : 1000

Expected Interest Rate (%) : 1

Number of Instalments (months) : 1

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If you want to build an investment portfolio by putting in small sums of money at regular intervals, then Systematic Investment Plan or SIP is the best option for you. It is a regular investment method by which you can build wealth over a long period.

So, if you are planning to build wealth and can’t afford a lump-sum investment in any investment vehicle, then Systematic Investment Pan (SIP) is the way out for you. It is a smart savings method and lets you build wealth for the future.

What is Systematic Investment Plan or SIP?

A Systematic Investment Plan or SIP is an investment vehicle which allows investors to invest small periodic amounts in mutual funds. It works on the principle of regular investments in which a certain pre-determined amount is invested at regular intervals.

It is like a recurring deposit wherein you put in a small amount every month. So, instead of making a one-time heavy investment, SIP allows you to make small periodic investments in a mutual fund.

With SIP, you can start investing by making periodic investments on a regular basis. For example, you can invest Rs.500 or Rs.1000 in SIP on a regular basis instead of make the one-time heavy investment.

In SIP, an investor is allowed to choose his preferred mode of investment which can be weekly, monthly or quarterly, according to his convenience. Also, users of SIP can choose from various investment vehicles ranging from stocks, mutual funds, ETFs, and even Gold funds. Nowadays, almost all mutual fund companies offer the option of investment through Systematic Investment Plan.

If an investor regularly invests in a SIP, he or she can get handsome returns. Just take this example to gauge on the wealth created by investing in a SIP. A monthly SIP of Rs.1000 for ten years at the return of 9% per annum would grow to Rs. 6.69 Lakh. If the same amount is invested in the SIP for 30 years, the amount will grow to 17.83 Lakh.

Investors can choose between Amount based and Quantity based SIPs. In Amount based SIP, a fixed amount (which is decided by you) is invested in your selected share at a predefined frequency. Whereas in Quantity based SIP, a fixed quantity of shares is purchased at a pre-defined frequency of your desired company.

Systematic Investment Plan / SIP

Some Important Features of SIP

SIP offers a tremendous opportunity for long-term wealth creation by investing small amounts over a long-term time horizon in mutual funds or equity market.

The following are the noteworthy features of SIP:


How does SIP work?

In SIP a fixed sum is regularly invested in a mutual fund scheme. It allows you to buy units on a given date each month. In SIP, there is no need to time the market. Investment in SIP can be made through post dated cheque or ECS (auto-debit) facility.

Investors are required to fill up an Application form and SIP mandate form. The forms can be submitted to the Mutual Fund Service Centre or the nearest service centre of the Registrar & Transfer Agent.

Herein, they can indicate their choice for the SIP date on which the amount will be invested. Subsequent SIPs are auto-debited following the standing instructions or post-dated cheques. The amount is invested at the closing Net Asset Value (NAV) on the date when the amount is debited or cheque is cleared.

Benefits of Systematic Investment Plan

SIP has become a very popular medium of investment as investors with small investment budget can also participate in it. It’s always a good idea to invest in SIP to build wealth. Let us explore the benefits of SIP.


SIP Calculator

With SIP Calculator you can easily calculate returns on your SIP investments. Using the SIP Calculator, you can get projected SIP returns for various time durations for expected annual returns. You need to select monthly investment amount, investment period, and expected annual rate of return. Once you hit the ‘calculate’ button, the SIP Calculator shows you the report on SIP Returns. It shows the total amount invested, expected maturity amount and wealth gain.

So, with SIP you can amass great wealth if you keep on investing for a long term period. Obviously, with SIP, you get the benefit of starting early, power of compounding and rupee-cost averaging.

! WISHING YOU HAPPY INVESTING WITH SIP!


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