Disclaimer: The calculator alone is not sufficient and shouldn't be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj Finserv AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
SIP Calculator: An Overview
Systematic Investment Plans (SIPs) can prove to be a wise option if you are planning to start your investment journey. Mutual fund investments made through SIPs can aid in long-term wealth accumulation in addition to promoting financial discipline. If you are wondering what percentage of your monthly income you should invest in SIPs, an SIP mutual fund calculator can help you make the right decision. So, what is a mutual fund SIP calculator? Keep reading to learn more.
What is an SIP calculator?
An SIP calculator is a tool that aids in determining the returns on your SIP investment. The SIP mutual fund calculator takes into account the estimated rate of return, your investment amount, and the duration of your investment when calculating the potential future value of your investment.
How does an SIP calculator work ?
A mutual fund SIP calculator uses the following formula to calculate the future value of your investment.
FV = P x {[(1 + r) n – 1] ÷ r} x (1 + r)
Here, FV - Future value of investment
P - Principal amount invested each month
r- Expected rate of return
n- Total number of payments
How to use an SIP calculator online?
To use the mutual fund SIP calculator online, enter the amount that you are willing to invest every month. Then choose the duration of the investment and expected returns. Once you provide this information, the calculator will show you what your invested amount is, what its future value will be and what your returns will be for that chosen period.
From there, to arrive at the SIP amount that is most affordable, simply change the amount you plan to invest every month or the tenure for which you plan to invest. You can also use it to understand how much you’ll have to invest on a monthly basis to achieve a specific financial goal in a chosen amount of time.
How does an SIP calculator help you ?
A mutual fund SIP calculator can help you in the following ways:
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Helps in determining the amount to invest in a SIP
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Helps with setting smarter financial goals by showing you expected returns
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Allows you to adjust the invested amount, period and expected returns to see investment horizons clearly
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Helps with building investing discipline
Advantages of SIP mutual fund calculator
Helps in decision-making: Investment planning is essential for achieving your financial objectives. You may carefully manage your finances and decide the amount to invest to meet your financial goals without any hassle by using a mutual fund SIP calculator.
Instant output:Calculating your investment's returns manually might be time-consuming. You may quickly and easily determine the expected future value of your investment with the use of an SIP calculator online.
Easy to use: The mutual fund SIP Calculator is incredibly simple to use. To get an estimate of the returns, you simply need to enter a few criteria, such as your investment amount, estimated rate of return, and investment horizon.
Frequently Asked Questions
The returns shown by the SIP mutual fund calculator are indicative and may differ from the actual returns you may get. The actual returns will depend on the performance of the fund itself and the prevailing market conditions.
The SIP calculator online is a tool that has been developed to help you determine the amount you are comfortable investing. It is not mandatory to invest the amounts shown by the calculator for given tenures and expected returns.
While most SIPs allow for a minimum investment of Rs. 1,000, some will also allow you to invest as little as Rs. 500 per month. The specifics of the minimum investment amount can vary from one fund to another.
- Bajaj Finserv Asset Management Limited has been referred to as Bajaj Finserv AMC.
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