Calculate your expected returns below by entering the amount you want to invest, tenure of investment, and the expected rate of return
Amount you want to invest
per month
How long do you want to invest for
months
Expected Rate of Return
%
Expected Amount:
Amount Invested:
Wealth Gain:
Tenure:
SIP, or Systematic Investment Plan, is a popular, widely preferred investment approach for fixed, regular investments in mutual fund schemes. The SIP system adheres to the rupee cost averaging theory, giving investors minimal shares at high prices and maximum at low prices. Till now, it is one of the most disciplinary investment approaches.
One simple tool that users can use to estimate returns on their SIP investments in mutual funds is a SIP calculator. These days, it is one of the popular investment options for millennials.
There are multiple mutual fund sip calculators available to assist potential investors in estimating their investments. Real returns, however, differ depending on a number of variables in a mutual fund scheme. The SIP calculator fails to provide an explanation for the exit load and expense ratio (if any).
Anyone can use the IIFL SIP return calculator in a few simple steps:
Now that you know how to calculate SIP returns, let's quickly examine its advantages.
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Even though you can always locate a SIP calculator online it's still a good idea to understand how these figures are calculated so you can feel more secure about your investing strategy. Compound interest is a mathematical formula that SIP calculators use to calculate investment returns. The calculator evaluates the returns while taking compounding frequency into account. The SIP calculator also asks users to enter the period of their investment, the estimated rate of return, and the monthly investment amount that they wish to make.
M = P x {[(1+ r)^n - 1] / r } x (1+r)
Consider the scenario where you desire to invest Rs1,000 each month for 2 years at an interest rate of 12%.
Therefore, the monthly rate of return comes out to be 12%/12 = 1% = 0.01
Using the above formula in our scenario, we can calculate the maturity value.
Maturity Value = 1,000X ({[1 +0.01] ^ {24} - 1} / 0.01) x (1 + 0.01) = Rs 27,243
If we would have just saved that amount in cash, we would have had Rs 24,000. Hence by investing in a SIP we got an added return of Rs 3,243 over a period of 2 years.
You can use the SIP calculator to determine the predicted returns and wealth growth for your monthly SIP investment. Based on an anticipated annual return rate, you can obtain a rough estimate of the maturity amount for any monthly SIP.
Some mutual fund experts claim that SIP can yield greater returns than lump-sum investments. You can develop financial discipline and the habit of setting aside money for the future with the help of SIP investments.
Here are the benefits of using a Mutual Fund SIP Calculator:
There are four most commonly types of SIPs in the market. These include:
Within a few clicks, you can utilize the IIFL Securities SIP amount calculator online. The following information must be entered using this method to calculate the monthly investment amount:
Step Up is an annual increase in the investment amount that corresponds to the growth in the investor's income. In other words, investors are allowed to ratchet up their SIP investments by a certain percentage each year.
This makes it easier to reach financial objectives quickly and methodically. Generally speaking, the step-up percentage should match the increase in the employee's yearly salary.
Here are 5 easy steps for you to follow if you want to invest in SIP but are unsure how to do so:
You only need a few documents to open a SIP, here they are:
The steps to invest in SIP are as follows:
Choose a certain date that you want to invest in each month. The most convenient way to invest in mutual funds for a longer length of time and build wealth is through SIPs. It is crucial to maintain an investment over the full investment time because of this.
Yes, individuals can select to pause their SIP investments for a predetermined amount of time with mutual fund firms.
It is possible to automatically renew a SIP. You can also choose to disable the auto-renew service offered by companies.
No, SIP allows you to make investments in debt and hybrid mutual funds.
Individuals often mistake SIP for mutual funds or something quite different from them. Investing in stocks or investing avenues is not what SIP is about; it's just a technique of investing. This is a means of investing that allows you to make regular payments into the fund or plan of your choosing.
The amount you can put into a SIP has no upper limit. The monthly minimum that you can invest is 500 rupees.
Since there is no end date for a perpetual SIP, you are free to make SIP investments for as long as you desire without increasing the term of your SIP. If you want to prolong the tenure of your current Mutual Fund SIP, speak with the fund house or the customer service department of your financial advisor. Check how much return you would likely get using the mutual fund calculator.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.