To achieve financial prosperity, investors need to make a robust plan for investments. SIP calculator is a handy tool which can allow an investor to assert the projected value of systematic investments through SIP after a known tenure at an expected interest rate. It provides the details of the expected amount at the end of the investment tenure through a mathematical formula and data entered can be revamped to check the results of different scenarios. SIP calculator is also known as Mutual Fund Calculator, SIP Return Calculator, Mutual Fund SIP Calculator, Mutual Fund Return Calculator, SIP Investment Calculator and SIP Planner. It is mechanised in a user-friendly manner to ease out the complications involved in the calculation of the periodic investments.
SIP calculator is a blessing for the investors who seek to fulfil their financial goal through SIP investments but are uncertain of the amount that they need to invest periodically. It can provide a practical blueprint to accomplish the long-term financial goals such as retirement savings, child future planning, and other personal goals. Knowing the future numeric value of the monthly invested amount will not only improve the decision making but will also render confidence to the investors. Mutual fund calculator can enhance the SIP investment to reward the investors with a better pre-planned output. With the help of Mutual Fund calculator, the users can save a lot of time and effort as it performs complex calculations at just a few clicks.
SIP or Systematic Investment Plan is a method of investment in mutual funds in which a fixed amount is invested periodically in the selected mutual funds. Each investment allots specific units to the investor according to the NAV of the fund at the time of investment. Apart from imparting financial discipline, this burden free investment technique also allows investors to gather enormous wealth in the desired tenure by taking advantage of rupee cost averaging and power of compounding.
In a systematic or periodic investment, the amount is invested on a fixed date of each month, and the updated amount after every deposit is continuously compounded to generate the most efficient return. This series of compounding is carried out till the maturity period of SIP is completed. This principle is called annuity compounding which involves highly complicated calculations. The SIP return calculator works on the mathematical formula of annuity compounding for which it requires three different parameters of the mutual fund SIP investment. The monthly investment, time horizon, and expected return need to be entered at their respective positions to calculate the expected return at the end of the tenure. These parameters are further described below:
- Monthly Investment
It is the SIP amount in Rupees which will be invested monthly by the investor throughout the tenure of investment. The user can select the minimum amount as Rs 500 up to a maximum of Rs 4,00,000 per month.
- Time Horizon
It is the time period in years for which the monthly investment will be carried out. The user can select the tenure of SIP investment from a minimum of 1 year to a maximum of 35 years.
- Expected Return
It is the annualised rate of return that is expected by the mutual fund or portfolio to provide during the selected tenure. It can range from a minimum of 7% to a maximum of 35%.
After entering the above details, the SIP calculator will generate the output after complex calculations within a second. The mathematical formula of annuity compounding is used as the returns in a systematic investment plan are produced through the power of compounding. The growth in NAV of the mutual fund scheme is compounded every year in SIP Investment calculator.
The SIP return calculator can assist better if it is used wisely. Apart from checking the outcomes of the current investments, the user can also check the possible consequences of the best and worst case to get a better idea of the returns that will be generated. The use of this tool can further be enhanced by smartly selecting the necessary parameters as suggested by our experts.
The amount should be selected according to the financial objective of the investor so as to avoid any imbalance. Choosing a small amount might not be adequate to fulfill the financial goal of the investor, while a higher SIP amount may incur unnecessary financial burden. Here Reverse SIP calculator can help investor to identify the amount of SIP to be done, to reach finincial goal.
Apart from the legitimate time period to achieve the financial goal, the present age of the investor should also be considered while selecting the tenure of investment in this calculator. The young investors can choose longer tenure for better outputs while those in their old ages should settle for a shorter duration.
The returns entered should be genuine and according to the risk appetite. Aggressive investors can select the return rate of 15-18%, and moderate investors can sail between 12-15% while the conservative investors should limit the expectations up to 12% to make better use of the SIP planner. The past returns should not be the only factor to expect the rate of returns in future.
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The systematic investment plan calculator generates error-free and explicit outputs if the data entered by the user is precise. Just like any other calculator, the mutual fund SIP calculator also provides accurate results, but the outputs of the return calculator do not ensure that the investor will be receiving that exact amount at the end of the tenure. The users need to understand that the returns in a mutual fund are not fixed for any time period and are utterly dependent upon the market conditions and strategies of the fund manager.
The SIP return calculator is available online and can be used by anyone through any device at any time. The usage is free of cost, and the user can check the outcomes multiple times to derive the most suitable amount, tenure and rate of return to fulfill the financial goal effortlessly.
Time is one of the most precious jewels in today’s fast-paced life. The calculation of the returns through systematic investment is a baffling task which can be time and effort consuming. SIP calculator, in this case, works as a saviour and does hefty calculations within seconds.
In general, laymen person with a non-financial background keeps a distance from the virtues of mutual funds due to the lack of conceptual knowledge regarding investment. The MF calculator has solved that issue as well as the only thing that the investor needs to know here is the amount of investment, tenure, and expected rate of return.
The SIP return calculator is designed to provide a comfortable and convenient calculation experience. The graphical interface allows the user to smoothly select the parameters with the help of a sliding bar which can be dragged to the desired value. The returns generated also separates the invested amount with the wealth gain and displays them differently to allow the user to get an exact idea of the capital appreciation that can be grabbed.
Suppose if the investor is assured of the amount that he wants after a fixed time period at a known rate of return, he/she can check the amount that is required to be invested periodically through the SIP reverse calculator or SIP need alculator. It further reduces the complexity for the goal-oriented investors who seek to achieve a fixed financial target. This reverse tool is the next level of advancement for SIP planning as it reduces the effort of multiple attempts to get the desired expected amount.
The mathematical formula used to generate the results is similar to that of the SIP return calculator but in this case, the calculations are done on the reverse basis where the total amount produced is known but the monthly deposit is unknown to the investor. The user needs to enter the amount that is required at the end of the known tenure instead of the monthly amount in this case. The procedure to select or insert tenure and the rate of return selection is similar to that of SIP return calculator.
Suppose, if the investor wants to check the monthly deposit needed to be made to achieve the target of Rs 10 lac in 5 years at 15% annualised return, he/she has to enter these three details to check the monthly investment. The reverse SIP calculator will generate the amount to be invested monthly along with the total amount invested throughout the time horizon of investment.
In simple words, the SIP calculator is a tool which will show you the future value of your monthly investment while the SIP reverse calculator is a guide which allows you to know the monthly investment needed to be done to muster a known target amount. Both the tools are beneficial to plan the SIP investments equally depending on the necessity of the investors. Some investors have a fixed goal in mind and invest in accordance with the fulfillment of that particular goal while others are certain of the amount they can invest but need a view of the future value of the investments for proper planning. The reverse SIP calculator can be extremely helpful for the goal-oriented user while the SIP return calculator can decorate the periodic investments for the latter users.
The lumpsum calculator is a similar planning tool which projects the future value of the lump sum amount invested for a fixed tenure at an expected rate of return. The investment is made one time only hence the method of compound interest is used by the lumpsum calculator to allow the investor to plan the investment accordingly to achieve the financial goal at ease. The procedure to use the lumpsum calculator is the same. The investor needs to enter the investment amount, the time period of investment after which he wants to check the value of the lumpsum amount and the rate which is expected from the mutual fund or the portfolio. The benefits and rest of the features of the lumpsum calculator are the same as that of the SIP calculator.
There are no significant differences between monthly and one-time investment plan in mutual fund calculator. The method of investment is periodic in SIP hence a more complicated formula of annuity compounding is used while in the lumpsum calculator, a comparably more straightforward method of compound interest is used as the investment amount is single. Apart from the calculations, there is no such difference between SIP and lumpsum calculator. Both the tools are equally important and can assist the investors to gain better returns and to fulfil the financial needs by making informed investments.
Better planning of the systematic investments can be made by using the combination of SIP calculator and SIP reverse calculator. SIP return calculator allows the investors to know the capital that will be available to them after a secure tenure which enables them to plan out the SIP investments according to their needs. The Reverse SIP calculator works on the contrary manner to provide details of monthly investments. Mutual Fund calculator and reverse tool are also called as SIP planner as the investors can use them without actually investing in mutual fund schemes. They provide aid to the decision making in the periodic investments and allows to create surplus wealth over a fixed tenure. Investors must use SIP planner before investing in mutual funds to check all the available options they can get their hands on.
To further assist the investors, a list of the best perfomimng SIP Funds is also provided to the users who are selected by our team of analysts after extensive research concerning various parameters to assist the investors with better investments. These schemes are chosen after studying the investment strategy, stock selection methods, fund manager’s ideologies and experience, trailing returns, and other risk/reward parameters like alpha, beta, Sortino, Sharpe, standard deviation, and many more. The schemes are suggested according to the suitability of the investors.
Our SIP calculator has the upper hand over those provided by others like HDFC SIP calculator, SBI SIP calculator, Moneycontrol SIP Calculator, ICICI SIP calculator, value research SIP calculator, and many more. Apart from delivering smooth, effortless, and accurate results, we also provide the portfolio recommendations according to the parameters inserted in the calculator which further saves time to seek portfolio allocations in equity, debt, and hybrid schemes. It also analyses the risk appetite of the investor by taking into account the inserted rate of return. The tool is programmed to smartly suggest an appropriate portfolio for investors with proper division of equity and hybrid allocation. This artificial intelligence technology is a unique feature of our SIP return calculator which also briefs the suitability of the portfolio concerning risk and return.
We also provide a projected growth table along with this investment calculator which depicts the future value of the invested amount in particular years. It allows the investors to get a quicker idea of the capital they will possess in the respective years without using the Mutual Fund Return calculator multiple times.