See below a quick insight into how your investment will perform.
| Total Investment | 1,20,000 |
|---|---|
| Wealth Gain | 94,968 |
| Maturity Amount | 2,14,968 |
| Total Investment (%) | 55.83% |
|---|---|
| Wealth Gain (%) | 44.17% |
Select a particular mutual fund type for your investment.
You can opt for different mutual funds available in the market. Choose a fund according to your investment goals and risk tolerance level. Proceed to KYC and submit your application form online or in person to start your investment journey.
Choose the investment duration.
The second choice, and the most crucial question to be answered when choosing a fund, is how long you want your investment to last. You may need your investment for somewhere between Half Year in 6 months or Even Years in 10 years, depending on your investment goals.
Invest regularly.
Select the date in the month when you want to invest on a recurring basis. One of the biggest advantages of investing via SIPs is how easy it is to sign up for one, even if you have a hectic schedule.
The inner workings of a SIP calculator are based on the mathematical formula that includes compound interest on your SIP investments: It uses the following formula.
FV = P [(1+i)^n-1] * (1+i)/i
How much will your future deposit be worth? FV = Future Value P = Pound Value of regular investment i = Yearly Rate of return n = Number of Payments Where: FV = Future Value, P is the regular investment amount, i is the rate of return, and n is the number of payments.
Assume you have decided to invest ₹10,000 per month for a period of 15 years with annual return of 15 per cent. Let’s plug in the values in the formula:
FV = 10,000 [ (1 + 0.15)^180 - 1 ] * (1 + 0.15) / 0.15
This translates to the fact that your SIP, which has been contributing ₹10,000 monthly on an anticipated return of 15 per cent, will amount to a considerable corpus at maturity, which is, around ₹91,40,827.73.
The biggest headache in life is about Financial Planning.The person always thinks "what are the investment options available", "which is the best one" and " how much returns can be expected".here comes SIPs and SIP calculators into the picture.
People who are planning to asume investors think that such plans are same as SIPs , but this is not the case as SIPs are just one of the ways the invest in these kind of mutual funds , but yes with the help of an SIP Calculator you can see how much profit will you gain when you invest on such schemes.
An investment through SIP is done in mutual funds by a fixed sum and at predetermined intervals. SIPs typically allow you to invest via instalments weekly, monthly or quarterly.
SIP is a strategy for mutual fund investment with fixed amounts periodically. Buying SIPs is like putting bricks in a house. You put a little at a time, and in the end, the investment will grow just as steadily as a reliable building.
Here's the beauty: SIPs benefit from rupee-cost averaging. You buy more units when the price is low and fewer when it's high, balancing out the impact of market ups and downs. Plus, compounding works its magic, making your money grow on itself over time.
These mutual fund sip calculators help potential investors estimate their mutual fund investments. However, a mutual fund plan's returns differ based on various circumstances. The SIP calculator does not clarify the exit load or expenditure ratio.
This calculator will compute your monthly SIP contribution's wealth growth and predicted returns. Indeed, you receive a preliminary estimate of the maturity amount for your monthly SIPs based on the expected yearly return rate.
Goal Setting: The SIP calculator guides you about your SIP goal in the first place – when you fill in the details of your financial goal, the amount of SIP you need get that SIP goal is immediately given there. Whether you’re looking to make your dream holiday or children’s education happen, or plan for retirement, SIP calculator clearly indicates exactly how many you should invest monthly or annually.
Sense and Cents: Experiment with different quantum (measured in Rs) and tenure (measured in months) to figure out the best SIP investment strategy for yourself. Your investment quantum is determined by your risk appetite, while your financial goals will define your investment horizon.
The Power of Compounding: The SIP calculator takes into account the power of compounding or ‘interest on interest’. It’s because of compounding that small, regular investments over time can grow into a substantial sum. The calculator helps you visualise this growth and encourages you to stay invested for longer.
Setting realistic expectations: Understanding that your account maturity date isn’t a target, but an estimate SIP calculator provides the balance at your targeted time frame at maturity. That gives you a target of where to plan for your money. But you have to prepare yourself that it can go up or down, based on market conditions of that time. Hence market fluctuation may cause an up and down movement of the balance. So setting realistic expectations can keep you on track with your goal.