Compute the forthcoming worth of your monthly SIP investment from anywhere!
A Mutual Fund SIP (Systematic Investment Plan) calculator is an online tool that helps investors estimate the potential returns on their mutual fund investments made through SIPs. It allows investors to determine the future value of their investments based on factors such as the investment amount, investment duration, expected rate of return, and the frequency of SIP installments.
Mutual Fund Calculator is highly recommended for evaluating investment returns due to its user-friendly nature. This calculator offers a comprehensive calculation of projected returns for investment periods of 1, 3, and 5 years, thereby aiding in the formulation of an effective financial plan based on the estimated returns.
A systematic investment calculator, also known as an SIP calculator, is a tool that helps investors estimate the potential returns on their investments made through a systematic investment plan (SIP). An SIP involves regularly investing a fixed amount at predetermined intervals, typically in mutual funds or other investment vehicles.
To use a systematic investment calculator, you generally need to provide the following information:The amount you plan to invest in each SIP installment.
The period for which you intend to continue making SIP investments.
The estimated annualized rate of return you expect to earn on your investments.
In accordance with the SIP plan, a specific amount is to be invested in the fund, the minimum being ₹500 and the maximum being ₹10,000 or more, depending on the investor's preference. The total turnover should be determined, followed by the investor's decision on the duration of their investment in the SIP scheme. The standard fund house regulations require a minimum commitment of six months. In order to achieve satisfactory returns, it is advisable to remain invested for a longer period.
Let us understand this with the help of an example, after a duration of five years, a sum of ₹20 lakh will be required for your child’s education, and an initial investment of ₹20,000 can be made at present. An aggressive strategy is acceptable, therefore an average return of 12% p.a. can be expected over the subsequent five years.
The future worth of your investment if you decide to invest a fixed amount of money each month for 5 consecutive years then the outcome would be computed as-
Yearly SIP calculators make use of the compound interest formula to estimate potential returns. The online SIP calculator computes the anticipated returns, taking into account the frequency of compounding. Additionally, the SIP return calculator necessitates the monthly contribution amount, the duration of the investment, and the estimated SIP return percentage.
The online SIP calculator will automatically compute both the maturity amount and wealth to be acquired from mutual fund investments. Additionally, by inputting the target amount that aligns with the investor's financial objective, the monthly investment amount for the designated duration and growth rate can be determined.
The systematic investment plan, commonly known as SIP, facilitates the compounding of investments to augment one's wealth. Furthermore, augmenting one's SIP investments at regular intervals may result in further wealth accumulation. Another rationale for frequently topping up one's SIP is that it should correspondingly increase as one's income grows. Utilizing a step-up online SIP calculator enables one to effortlessly compute their long-term investment.
The investment approach is used to determine the possible SIP returns. To evaluate the returns the following information is required-
In the context of Systematic Investment Plan (SIP), the target approach refers to a strategy where an investor sets a specific financial goal or target and invests in mutual funds through regular SIPs to achieve that target.
When using the target approach, an investor identifies a specific financial objective, such as buying a house, funding their child's education, or building a retirement corpus. They then determine the time horizon for achieving that goal. Based on the target amount and the time available, they calculate the required monthly or periodic investments needed to reach the goal.
The Flexible SIP option allows for adjustments to be made to one's investment amount, allowing for missed payments during times of financial strain and increased contributions to the SIP account during periods of surplus funds.
This is an option to gradually increase your investment by utilizing a Step-Up SIP or Top Up SIP.
A perpetual Systematic Investment Plan (SIP) is characterized by the absence of a specified end duration for the investment in a mutual fund SIP. The investor retains the option to withdraw the funds at any time or upon the attainment of their financial goals, and may utilize the mutual fund SIP calculator to enhance their comprehension of the investment.
It is feasible to utilize triggers such as NAV, index level, SIP start date, and event in this particular SIP. However, it is not highly recommended as it may encourage speculation to some extent
Conducting research and analysis is imperative prior to making any investment decisions. It is essential to assess the potential returns beforehand to ascertain the profitability of the opportunity.
Let us understand the working of our calculator with the help of an example, consider a situation where an individual intends to invest ₹4,000 per month for a duration of 10 years at an expected rate of return of 10%. These figures must be entered in the appropriate fields. The outcome of this scenario would be a total income of ₹8.3 lakhs. However, if the investment is increased to ₹5,000, the total income would be ₹10.3 lakhs. To determine the potential returns, one may modify the values on yearly SIP calculators.
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