SIP Calculator: Systematic Investment Plan (SIP) calculator is a tool that helps you identify the returns you are likely to enjoy by parking your savings into SIP investments. While a lot of us think that mutual funds and SIPs are the same, SIPs are actually ways of making investments in mutual funds. Under SIP, a person invests a fixed amount of money on regular intervals. These intervals are generally weekly, monthly or quarterly.
Use Our SIP calculator to estimate returns on your SIP investment. It also create the best plan to achieve your financial goals.
Benefits of SIP
- Make small investments – The most beneficial part about the SIP is you end up saving huge by making very small investments. By a small investment, we mean even an amount of ₹500 per month.
- Rupee cost averaging – This is another great benefit of investing in SIP. SIP helps you buy more units at a lower price and lesser units at a higher price. Therefore, the effect of short term market fluctuations gets diluted on the investment, while it stays beneficial in the long run.
- Power of compounding – the money invested is compounded over a certain amount of time via regular investments. Therefore, if you start early, you will have a better and a higher effect.
- Builds discipline – the model of investments in SIP encourages a high amount of discipline in the investor.
How to Use SIP Calculator
Follow these steps to use SIP calculator:
- Select SIP Tab
- Enter your Monthly Investment.
- Expected your Return Rate in percentage.
- Select Time Period in Years.
- Now, it shows your Invested Amount, Wealth Gained and Maturity Amount.
Mutual fund experts says that investments in the form of SIPs are pretty more lucrative compared to investing a large sum of money. The SIP investments make you more disciplined towards savings and managing your finances. Using the SIP calculator will help you identify the number of returns you can expect on the invested funds.
A few clicks can easily help you calculate your returns on SIP. All you do is enter the amount you invest monthly, the number of years you want to be invested and the expected rate of return. The calculator will, therefore, help you identify how much you’d be able to avail on completion of the tenure.
Major benefits of the SIP calculator include:
- Help you plan the amount of funds you want to invest.
- Find out the total amount invested.
- Calculate the estimated returns on your investments.
SIP Calculator FAQ
How big or small can I invest in a SIP?
To be honest, there’s no real limit on this. You can invest as much you want in a SIP starting from ₹500 per month.
Do SIPs help you save tax?
No, not every SIP plan is tax-free. However, the SIPs in ELSS Mutual Funds help you avail tax deduction of up to ₹150000 per annum under Section 80C.
What is the highest tenure of a SIP?
While there is no highest tenure for a SIP, you can start from 3 years and go as much as you want.
My tenure is over. How to renew my SIP?
The SIP can be renewed automatically. Ask your investment provider to help you with an auto-renew service.
What are the different kinds of SIP plans available in the market nowadays?
Step up or a top-up SIP, trigger SIP, perpetual SIP, flexible SIP are some of the SIPs available in the market.