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- ICICI Prudential Advisor Series - Dynamic Accrual Plan 31.85 0.00(0.00%)
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About SIP Calculator
Investment in mutual funds can be made in a systematic way through SIPs. SIP is a kind of investment scheme that lets a mutual fund investor invest a specified amount of money on a quarterly, monthly or a weekly basis. SIP investment is considered one of the best ways to get good returns from mutual fund investments. Investing in a mutual fund through the way of SIPs reduces the impact of market volatility and helps an investor get good returns. Using the SIP calculator enables you to get the expected returns you are going to get by investing your hard earned money through SIP at regular intervals.
To use the SIP calculator, all you need to do is enter your monthly investment amount, investment period and you get to know the amount you can expect from your investment.
Why Use a SIP Calculator?A SIP calculator is an extremely helpful tool when an investor is making a mutual fund investment through the systematic investment plan. The calculator helps the investor get a rough estimate of the expected returns from his quarterly, monthly or weekly investment. The estimated returns are projected on the basis of the fund’s annual return rate. SIP calculator is helpful when an investor is planning to create a good financial corpus to fulfill his future responsibilities. SIP calculator helps an investor achieve his long-term objectives by providing him with an estimate that would help him plan his investment in a better way.
For example, if an investor wants to accumulate funds of Rs. 10 lakhs in the next five years and is looking to invest in mutual funds through SIP, then here the SIP calculator helps him with the monthly SIP amount he will have to shell out to get the desired amount.
How does a SIP calculator work?SIP calculator uses important data that computes an investor’s financial goal, investment period and rate of return.
Here are a few steps to be followed for using the SIP calculator.
Step 1: First the investor will have to enter the monthly investment amount that he can invest. SIP mutual fund investments can be started with an amount as low as `500. Whereas, other investment schemes require an individual to a minimum of `10,000 per month.
Let’s consider the below example:Arjun wants to invest a sum of `1,000 per month.
Step 2: The next step is the number of years for which the investor would like to make the investment. Generally, the minimum tenure for which the SIP investment can be made is 6 months. However, to get high returns, it is advisable that an investor stays invested in the SIP for a longer tenure.
Suppose, Arjun wants to invest `1,000 every month for the next 5 years.
Step 3: The expected returns are estimated as per the annual return rate of the fund.
If Arjun has selected a fund that provides 15% returns, then his overall returns would be `88,575. This means that over the 5 years, Arjun should make an overall investment of Rs. 60,000 and is likely to get returns of `28,575.
To use the SIP calculator, an investor does not have to visit a fund house as he can simply do the calculation online. The SIP investment and tenure can be changed in the SIP calculator a number of times to get an exact estimate of the returns that can be earned through the investment. However, while using the SIP calculator, it is important that an investor is aware that the SIP calculator uses the possible inflation rate while computing the value of your investment.
Benefits of Using SIP CalculatorHere are a few benefits of using a SIP calculator
- SIP calculator helps an investor strategically and efficiently plan his investment
- SIP calculator simplifies complex calculations and provides the exact estimate that an investor can expect from his investment. Thus, helping the investor make the right investment decision
- Using SIP calculator is easy as it only requires an investor to enter the investment amount and the tenure for which he is looking to invest
- SIP calculator is free of cost and does not require you to enter your personal details
- With a SIP calculator, the investor can plan his investment portfolio in just a matter of seconds. He really does not have to think much as the estimated amount is displayed in no time, helping an individual make a wise investment
- With the help of a SIP calculator, an individual who is new of the world of investment does not have to depend on an agent for knowing the funds return rate as the calculator does it all for him
How to Use Invest Online SIP Calculator?InvestOnline’s SIP calculator is easy to use and you can easily check the likely return rate of your investment from the comfort of your home, anytime, anywhere.
All you need to do is follow the below steps
FAQs on SIP calculator
Does lump sum calculator work same as the SIP calculator?
A lump sum calculator calculates the maturity amount of an investment made at one-time. Whereas, the SIP calculator calculates the maturity amount of an investment made at regular intervals i.e. quarterly, monthly or a weekly basis
Which are the best SIP calculators in India today?
Today almost every fund house or an investment portal offers you the SIP calculation tool. You can use any calculator tool as they run on the same formula and help you get the likely return rate of your investment.
Can SIP calculator be used for calculating return from all types of mutual funds?
Yes, SIP calculator can be used for calculating returns from all types of mutual funds.
What is SIP planner?
SIP plan is a tool just like a SIP calculator that helps an investor plan his SIP investments just in a matter of few seconds.
In the SIP calculator, does the annual rate of return remain the same for all types of funds?
No, in the SIP calculator, the annual return rate does not remain the same for all types of funds. You will be required to check the annual return rate of the fund and then enter the rate manually.