Regular investment is one of the best routines one can establish. A Systematic Investment Plan, or SIP, is the perfect investment tool to keep you invested in the markets.
If you want to be sure that the money is moved from your bank account to the fund on the scheduled date, choose the auto-debit option. You won't have to be concerned about forgetting a monthly payment this way.
Long-term wealth creation is the goal of SIP investments in mutual funds. It might help you develop the habit of saving and investing because it is an ongoing procedure rather than a one-time commitment. SIP investments may also help you reduce your exposure to market volatility.
A particular type of investment plan provided by mutual fund providers is called a Systematic Investment Plan (SIP). One can periodically (weekly, monthly, or quarterly) put a little amount into a chosen mutual fund by using a SIP. SIP provides retail investors with a passive, disciplined investing strategy that can build long-term wealth using the power of compounding.
You can estimate the wealth gain and expected returns for your monthly SIP investment in mutual funds using an online SIP calculator. Based on a predicted annual return rate, the tool enables you to obtain a rough estimation of the maturity amount for any of your monthly SIPs. To find out how much your money could increase if you invest now, visit our SIP calculator.
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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:
These calculators for mutual fund sip are made to provide prospective investors with an estimate of their mutual fund investments. The actual returns provided by a mutual fund plan, however, vary based on a number of variables. The exit load and expense ratio (if any) are not explained by the SIP calculator.
The wealth increase and anticipated returns for your monthly SIP investment are calculated using this calculator. In fact, based on a predicted yearly return rate, you receive a preliminary estimate of the maturity amount for each of your monthly SIPs.
By simply including the following parameters, we can compute the SIP Investments:
Typically, fund houses demand that investors commit to the SIP for a minimum of six months.
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:
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.
Maturity Amount = Principal Amount x {[(1+ r)^n - 1] / r } x (1+r)
Here, n is the number of payments you make
r is the expected rate of return
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.
Within a few clicks, you can utilize the IIFL Securities SIP amount calculator online.
Simply input the monthly invested amount (the amount for which you initiated the SIP), the desired investment duration in months, and the projected rate of return.
The calculator will display the projected amount you can get once your investment term is over as soon as you enter the value.
The finest SIP calculator is provided by IIFL Securities and gives the following benefits:
Your savings portfolio is ensured to be in accordance with your requirements and financial needs by a systematic investment plan calculator.
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 3 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:
You can submit a copy of your driver's licence, utility bill, or bank statement as verification of your address.
Your AADHAR Number is not required, however, having it on hand will make things go more smoothly. Now that you have these documents, you can process your SIP account online.
You must supply specific information, like your Name, Date of Birth, Address, and Mobile Number, in order to complete your KYC before investing in mutual funds via SIP. Visit the website of the fund house of your choice to complete your KYC. Then give the needed information, including a soft copy of your PAN card and address verification.
Once your KYC for SIP investments has been completed successfully, you must go to the fund house's website and search for the "Register" or "New Investor" link.
The next step is to select how long you want to commit to it. The length might be anywhere from six months to however long you wish to continue investing.
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.
Mutual fund taxability is influenced by the nature and timing of the investment. A SIP is therefore not always tax-free. The returns from an equity-linked saving plan or ELSS mutual fund are tax-free. You will obtain a short-term capital gain if you invest in equities mutual funds for a year and pay tax at a rate of 15% plus cess and surcharge. However, if you hold onto your investments for longer than a year, you will accrue long-term capital gains and be subject to tax at a rate of 10% plus cess and a surcharge if the gain exceeds Rs1 lakh.
SIPs are a far better option when investing in mutual funds than lump sums since they address the three main issues that people have when beginning their investing journey: a lack of sufficient investible excess, a lack of discipline, and a fear of stock market volatility.
Yes, most mutual fund firms also give you the choice to pause your SIP investments for a predetermined amount of time.
A SIP can indeed be renewed automatically. Additionally, businesses provide you with the choice to turn off the auto-renewal feature.
There are numerous varieties of SIPs on the market, including:
You can adjust the amount you invest in a flexible SIP to suit your preferences.
No, you can use a SIP to invest in debt and hybrid mutual funds.
Yes, you may use the SIP investing calculator at any moment to monitor your returns and change the SIP amount.
SIP is frequently confused with mutual funds or seen as being unique from them. SIP is not a fund, plan, stock, or investment route; it is just a type of investing. It is a way to invest regularly in a fund or scheme of your choice.
A SIP's tenure is not limited in any way. As long as you can, you can invest. The minimum tenure varies depending on the policy.
There is no cap on how much you can put into a SIP. The smallest amount you can invest each month is usually Rs500.