This automatic tool helps the investors in deciding how much they should invest regularly to accumulate enough for their future goals over a period of time.
To create a huge corpus, investors are required to make a systematic investment plan and invest in equity and debt instruments on a regular basis through SIP. And, the first step to plan is to calculate the amount they need to invest. Apart from this, you can also calculate the expected amount if you know how much you can save in each interval and invest.
SIP calculator works on compounding formula where you require a total expected amount, the rate of return and tenure to calculate the amount you need to invest regularly. Sometimes, you have to alter the values in the input of the time horizon or rate of returns if you are not getting the expected amount in your range.
The investors should have information regarding the expected amount, rate of returns and time horizon at first. After deciding the relevant information and mentioning in the blank bracket, SIP planner calculates the fixed amount you are required to invest regularly. This process is very quick as it hardly takes a minute.
The value of the rate of returns basically depends on the risk appetite of investors and instruments where he/she wants to invest. If the investor has high risk-appetite and planning to invest in equity instruments, he/she can fix a rate of return high and start the calculation. Similarly, if the risk-appetite is low and investor is planning to invest in debt instruments, he/she can go for a low rate of return to generate adequate results.
The investors who are planning to invest in mutual fund either through SIP mode of investment can use this calculator as this will assist in calculating the estimated returns and SIP amount that they are required to pay.
This portal offers three types of the calculator to help investors in making a prudent investment decision. SIP Calculator: This tool helps the investors who already know fixed SIP amount, the expected rate of return, and time horizon and want to calculate the expected returns by investing in mutual fund. SIP Reverse Calculator: With this calculator, you can obtain estimation regarding the monthly, weekly or yearly amount you want to invest to accumulate the expected returns. Lump Sum Calculator: This calculator computes the expected returns you will get by making a lump sum investment over a time horizon at the expected rate of returns. The investors with a lump sum investment aim can use this mutual fund return calculator.
SIP calculator is available at MySIPonline free of cost. The investors can use this calculator to make the required calculation unlimited times as there is no such maximum usage sort of criterion.
What Is SIP Calculator?
It is the handiest tool for every investor who wants to invest through SIP. Before starting the calculation, the investor should know tenure, expected interest rate and SIP amount. This easy-to-use SIP calculator tool helps the investors to compute expected amount without digging into a complex mathematical formula. To get the appropriate expected return, the investor can tweak the inputs accordingly. After using this user-friendly functioning technique, you can wipe out the complications of periodic investments in calculating the exact value with 100% precision. Whether you are a naive or an experienced investor, you will be amazed by the benefits of the tool to help you in well-structured financial planning through a systematic approach. Interestingly, you don’t have to pay any charges as it is a free tool.
SIP Calculator - Why You Need It?
SIP Return Calculator is a blessing for the investors who seek to fulfil their financial goals through SIP investments but are uncertain of the amount that they need to invest periodically. Mutual fund sip calculator 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 planner can enhance the SIP investment to reward the investors with a better pre-planned output. With the help of mf tool, the users can save a lot of time and effort as it performs complex calculations at just a few clicks.
How Does Mutual Fund SIP Calculator Work?
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. SIP calculator works on the mathematical formula of annuity compounding for which it requires three different parameters of 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, this tool 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 planner.
- Lowest Lock-in
- High Equity Returns
- Paperless Investment
- Benefits Up To Rs 43,650*
Benefits of SIP Calculator
SIP 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 Mutual Fund 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.
It 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.
Reverse SIP Calculator
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 or SIP need calculator. 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.
How Does SIP Reverse Calculator Work?
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 investment planner.
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. SIP Reverse calculator will generate the amount to be invested monthly along with the total amount invested throughout the time horizon of investment.
Comparison Between SIP Calculator and SIP Reverse Calculator
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 planner can be extremely helpful for the goal-oriented user while the SIP investment planner can decorate the periodic investments for the latter users.
What is Lumpsum Calculator ?
It 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 tool are the same as that of the SIP planner.
SIP Vs Lump sum 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 planner. 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.
Best SIP Funds for 2018
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.
Why Is our SIP Calculator Better than Others?
This tool has the upper hand over those provided by others like HDFC, SBI, Moneycontrol, ICICI, value research, and many more SIP calculator. 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 smartly to 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.