You can use the SIP calculator for mutual funds like equity (like small-cap, mid-cap, large-cap,etc.), debt, and hybrid funds, ELSS, and index funds. If you know how much you want to invest in Mutual Funds every month, you can use the ET Money SIP Calculator to estimate the potential future value of your investments. Please note that by submitting the above mentioned details, you are authorizing us to Call/SMS you even though you may be registered under DND. The trigger could be an event, like a sudden market dip or a favourable market condition, a specific index level, a level of NAV (Net Asset Value), etc.
Returns from SIP Investment
You can check how your wealth will grow by simply entering the SIP amount, expected rate of return, and the duration of investment. Investments made into market-linked instruments such as Mutual Funds do not provide guaranteed returns. So investors might find it difficult to figure out how much their money will grow in the future or how much they need to invest to reach financial goals. However, the installment amount should depend on your monthly income, existing liabilities, and future financial goals. After taking these factors into account, choose an investment amount.
Also known as Top-up SIP, this plan allows you to increase or step up the SIP amount at regular intervals. For example, you can start a monthly SIP with ₹10,000 and arrange to increase it by ₹1,000 every year. This plan is suitable for salaried people who expect annual increments and bonuses. The SIP returns are calculated by entering the variable numbers mentioned above into the Systematic Investment Plan calculator. Once you have a clear idea of the expected returns and commitment required, you can then make a more informed decision about which SIP strategy is most viable for you.
Can an SIP calculator guarantee accurate future returns?
By using the calculator, you can also compare different investment scenarios and track your progress toward your financial goals. SIP or Systematic Investment Plan is an investment scheme offered by mutual fund companies in India to retail investor. It allows them to invest a small fixed amount step-by-step over a period of time instead of one time lump sums investment.
Benefits of SIP as compared to Lumpsum investment
Just enter the monthly SIP amount, investment period, and expected returns into the online SIP calculator and planner to know how the estimated future returns from your SIP investment. This calculator will calculate the wealth gain and expected returns for your monthly SIP investment. Indeed, you get a convention of conservatism rough estimate on the maturity amount for any of your monthly SIP, based on a projected annual return rate.
You can stay invested in most SIPs for a predetermined period of time. However, for perpetual SIPs, you have to only mention the start date and not the end date. This means that you are going to keep investing in the SIP until you request the fund house or the Asset Management Company (AMC) to stop the SIP.
- You can just set up an account and benefit from rupee-cost averaging over time.
- This means that you need not commit huge amount of money that is difficult to pay in future.
- If you are not satisfied with the end amount, you can decide whether to increase the investment period or find another SIP that gives a higher return.
- Your trigger can result in starting the SIP, redeeming the fund units, or switching to another scheme.
- The SIP calculator does not provide clarification for the exit load and expense ratio (if any).
SIP offers a disciplined way of investment and benefits investors in the long run with the power of compounding growth. It gives the benefit of Rupee Cost Averaging by providing the chance to buy more NAV (Net Asset Value) with the same investment amount in a bear market. Additionally, investors can choose to stop SIP whenever at anytime. A SIP return calculator helps you estimate how much your investments can grow over time with regular contributions. It allows you to see potential future returns based on how much you invest each month, for how long, and at what rate. This provides you necessary information to plan your finances, set realistic goals, and make informed decisions about your investments.
The SIP calculator will show the total amount along with the interest earnings.