The SIP Calculator or a Systematic Investment Plan calculator is an easy tool that helps individuals estimate the potential returns on their mutual fund investments.
| Invested Amount | : ₹3,000,000 |
| Est. Returns | : ₹2,808,477 |
| Total Value | : ₹5,808,477 |
An online SIP Calculator is your go-to companion for simplifying mutual fund investments. This versatile tool offers insights & projections for fine-tuned planning, making your investment journey more informed and efficient.
Learn how this calculator can help you make high-return investment decisions and achieve your financial goals.
How to Use SIP Calculator
Using an SIP Calculator is an essential step for investors seeking to make informed decisions about their mutual fund investments. SIP calculators help individuals estimate the potential returns on their investments, ensuring they stay aligned with their financial goals. They are user-friendly tools that make the investment process more accessible, even for those with limited financial expertise.
Here's a step-by-step guide on how to use an SIP Calculator:
Step 1: Select the SIP Calculator: choose a reliable SIP Calculator source from a trusted financial institution, mutual fund provider, or a reputable financial website. Many mutual fund companies offer SIP calculators on their websites.
Step 2: Input Your Investment Details: once you've selected a SIP Calculator, you will need to input specific investment details. Including, your Desired Investment Amount, investment Duration, and Expected Annual Rate of Return.
Step 3: Calculate Your SIP Amount: after entering your investment details, the SIP Calculator will compute the amount you need to invest regularly to reach your financial goal.
Step 4: Adjust Parameters: An SIP Calculator will allow you to adjust various parameters to see how they impact your investment plan.
Step 5: Evaluate Results: review the results provided by the SIP Calculator. It will show the total amount you are likely to accumulate over your investment duration. It is crucial for setting realistic financial goals and understanding the potential outcomes of your SIP investments.
Formula to Calculate SIP
Understanding the formula to calculate SIP is crucial for investors who prefer a structured approach to mutual fund investments. SIPs offer a disciplined way to grow wealth over time by regularly investing a fixed amount.
By knowing the formula behind SIP calculations, investors gain insights into how their investments accumulate over time.
The formula to calculate SIP is
M =P*[ {(1+i)^n-1 }/ i ] * (1+i)
where
M is the amount you receive upon maturity.
P is the amount you invest at regular intervals.
n is the number of payments you have made.
i is the periodic rate of interest.
Example::
Suppose you invest ₹5000 in a SIP for 12 months at an interest rate of 13%, the calculator will be as follows-
13%/12 = 0.0108
Calculating the value:
Hence, M = 5,000X ({[1 +0.0108 ]^(12 – 1) / 0.0108) x (1 + 0.0108)
This would give you an amount of ₹64,397(approx) in a year.
How Can SIP Calculator Help
The SIP Calculator Online is your financial ally in the world of mutual fund investments. This lumpsum calculator helps you estimate and helps you check the nuances of Systematic Investment Plans or SIPs.
Here's how the SIP Calculator can assist you in your investment journey:
- Estimate your future returns: SIP calculator can help you estimate the future value of your investments by taking into account the investment amount, investment duration, and expected return. This can help you plan your finances and achieve your financial goals.
- Choose the right investment amount: The SIP calculator can help you choose the right investment amount based on your financial goals and risk tolerance.
- Track your progress: The SIP calculator can help you track your progress over time and make necessary adjustments to your investment plan.
- Make informed investment decisions: The SIP calculator can help you make informed investment decisions by providing you with an estimate of your future returns and risk.
Advantages of Using the SIP Calculator
Using a Systematic Investment Plan (SIP) Calculator offers several advantages for investors.
Here are some key advantages:
- Financial Planning: SIP calculators help individuals plan their investments more effectively. By providing an estimate of potential returns, they allow investors to set realistic financial goals and determine the required SIP amount to achieve them.
- Goal-Based Investing: SIP calculators enable goal-based investing. Whether you're saving for a child's education, buying a home, or building a retirement corpus, the calculator helps tailor your investments to meet specific financial objectives.
- SIP Amount Estimation: these calculators help investors determine the right SIP amount based on their financial capacity and investment goals. You can adjust the SIP amount until it aligns with your budget.
- Risk Assessment: these calculators provide insights into the potential risk and returns associated with your investment choices. This helps investors make informed decisions about their portfolio composition.
- Quick Comparisons: SIP calculators allow investors to compare different mutual funds, asset allocation strategies, or investment tenures to determine which option best suits their financial goals.
Best SIP Plans for 5-Year Investments
The below table consists of a list of SIP plans for a return period of 3 and 5 years:
SIP Plans for 3 and 5 years in Equity Funds:
| Name of the fund | 3 Year Return | 5 Year Return |
|---|---|---|
| Quant Small Cap Fund Direct Plan-Growth | 67.91% | 22.49% |
| ICICI Prudential Technology Direct Plan-Growth | 51.73% | 21.60% |
| Quant Tax Plan Direct-Growth | 51.73% | 21.76% |
| Quant Active Fund Direct-Growth | 46.72% | 19.29% |
| Quant Infrastructure Fund Direct-Growth | 40.10% | 20.80% |
| Aditya Birla Sun Life Digital India Fund Direct-Growth | 40.10% | 20.80% |
| Axis Small Cap Fund Direct-Growth | 38.50% | 18.34% |
| SBI Technology Opportunities Fund Direct-Growth | 36.75% | 20.84% |
| Tata Digital India Fund Direct-Growth | 37.81% | 37.81% |
| Quant Mid Cap Fund Direct-Growth | 46.37% | 19.21% |
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Note that, these are just data representations and are not investment advice.SIP Plans for 3 and 5 years in Debt Funds:
| Name of the fund | 3 Year Return | 5 Year Return |
|---|---|---|
| Aditya Birla Sun Life Medium Term Direct Plan-Growth | 14.17% | 8.51% |
| ICICI Prudential All Seasons Bond Fund Direct Plan-Growth | 7.07% | 8.06% |
| ICICI Prudential Gilt Fund Direct Plan-Growth | 6.70% | 8.36% |
| SBI Magnum Gilt Fund Direct-Growth | 6.12% | 8.07% |
| Kotak Gilt Investment Direct-Growth | 6.23% | 8.06% |
| DSP Government Securities Direct Plan-Growth | 5.88% | 8.34% |
| Nippon India Gilt Securities Fund Direct-Growth | 5.38% | 8.07% |
| IDFC Government Securities Fund Constant Maturity Direct-Growth | 5.19% | 7.85% |
| Bandhan Government Securities Investment Plan Direct-Growth | 5.69% | 8.39% |
| ICICI Prudential Constant Maturity Gilt Fund Direct-Growth | 5.17% | 8.44% |
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Note that, these are just data representations and are not investment advice.Check other useful financial calculators below:
| EMI Calculator | FD Calculator |
|---|---|
| Mahila Samman Calculator | RD Calculator |
| Mutual Fund Calculator | SSY Calculator |
| Simple Interest Calculator | Compound Interest Calculator |
| EPF Calculator | PPF Calculator |
| NSC Calculator | Post Office Monthly Income Calculator |
| SCSS Calculator | TDS Calculator |
| NPS Calculator | Atal Pension Yojana Calculator |
| Gratuity Calculator | HRA Calculator |
| GST Calculator | Kisan Vikas Calculator |
| Loan Eligibility Calculator | SBI SCSS Calculator |
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Frequently Asked Questions
A SIP calculator is a tool that helps you estimate the future value of your investments in a systematic investment plan (SIP).
SIP calculators estimate the future value of your SIP investments by considering investment amount, duration, and expected return.
You should use an SIP calculator to plan your future investments and achieve your financial goals.
To calculate your SIP returns you can use the Buddy calculator or use the formula mentioned above.
Factors like investment amount, duration, asset allocation, market conditions, and fund manager performance affect SIP returns.
The formula for SIP calculator is as follows: M =P*[ {(1+i)n-1 }/ i ] * (1+i). For more details on how to use the formula, check the topics above.
Yes, there are many free SIP calculators available online. These calculators are easy to use and provide you with an estimated value of your investment at the end of the investment period.
Use SIP calculator to estimate the monthly investment required to achieve retirement corpus, considering monthly expenses and expected rate of return.
SIPs are periodic investments, while lump sum investments are one-time investments.
Maximise SIP returns over the long term by investing regularly, increasing investment amount over time, and rebalancing the portfolio regularly.
Use the SIP calculator to estimate the future value of SIP investments by considering realistic investment amounts, duration, and expected return.
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