SIP Calculator
(Systematic Investment Plan)
Invest small, grow big with SIPs
SIP Calculator - Systematic Investment Plan Calculator
Systematic Investment Plan [SIP] is one of the most popular investment strategies that allows all individuals to invest in mutual funds regularly over a specified period. It involves investing a fixed amount at regular intervals like monthly or yearly, but typically most people use monthly.
SIP offers several advantages, making it the most popular investment method. Firstly, it promotes financial discipline by encouraging and building regular saving habits. Secondly, it provides the benefit of rupee cost averaging, allowing all the investors to buy more units when prices are low and fewer units when prices are high. Additionally, SIPs offer flexibility and convenience, as investors can start with a small amount and increase it gradually. Starting a SIP is a wise choice as it helps teach disciplined investing habits and offers the potential for long-term wealth creation.
SIPs are the smartest way to grow steadily. It allows you to invest a fixed amount regularly, like clockwork. This builds a habit of saving and helps you achieve your big financial goals with a small bit of investing.
SIPs make your savings automatic. You set it up and forget it, ensuring you invest consistently....
How does our SIP calculator work?
SIP (Systematic Investment Plan) calculator is an online tool used by investors to estimate the future returns on their mutual fund investments through SIPs. Here's how it typically works:
A SIP calculator works on the following formula:
FV = P × ({[1 + i]^n – 1} / i) × (1 + i).
In the above formula: FV is the future value you receive upon maturity, P is the fix amount you invest at regular intervals, n is the number of payments duration you have made, i is the periodic rate of interest (Compunded Intrest Rate)
Note : The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
Frequency of Investment: Select whether you choose to make SIP on a monthly or yearly basis SIPs are typically made monthly
Monthly/Yearly Investment: This is the amount you wish to invest regularly in your SIP
Expected Annual Interest Rate: Here, you need to enter the interest rate that you expect for the investments made during the entire period. In this SIP calculator, you need to put rate of return on per annum basis.
Investment Duration (Years) / Tenure: The period for which you plan to continue the SIP (in Years)
Final Result: The final result of our SIP calculator is the total future amount you would accumulate at the end of your investment period. Also, we add total earnings and your total investment value section to identify your growth. We use pie chart for visual representation to understand better.
Our calculator works with this module, to get answers in a fraction of a second...
SIP Investment Example
For example, you start a SIP
- Invest Monthly: Rs. 1,000
- Duration: 5 years (60 months)
- Expected return: 12% annually (Remember, this is an estimate, actual returns can vary)
Here's a possible scenario for Mutual Fund:
- Month 1: You invest Rs. 1,000. Let's assume the current NAV (Net Asset Value) of the mutual fund is Rs. 10 per unit. So you get 100 units.
- Month 2: You invest a second installment of Rs. 1,000. Now, imagine the NAV has dipped due to market conditions from Rs. 10 to Rs. 8 You buy 125 units. (This is the actual benefit to get average)
- Overall: As you continue your SIP, The NAV will fluctuate, This is the perfect example of rupee-cost averaging or averaging you're portfolio.
Result: After 5 years with the given data, your total SIP investment would be approx 82,486/- and your total investment is 60months*1000= 60,000/- so you earn approx 22,486 /-
Advantages of Trademint's SIP Calculator
TradeMint offers the best SIP calculator, which provides the following advantages
- Plan your investments to get a clear idea, about future performance based on the amount and tenure.
- Showing accurate results with visual representation helps save time during a manual calculation.
- You can compare different scenarios by changing the investment amount, and duration.
Final Words
By using our SIP calculator, you can approach your investment decisions with more information that improve your long-term financial planning.
Start planning your financial future today!
Remember: This SIP calculator provides an estimation. Actual returns may vary depending on market performance and other factors.
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