SIP Calculator allows you to evaluate the returns you’ll get by making investment in small amounts of money in SIP at regular intervals over a period of time.
Why Use SIP Calculator?
In order to avail high returns on investment over a long period of time, it is very important that one should make systematic investments and a SIP calculator or SIP investment calculator can play a key role in doing so.
With the help of a SIP Calculator, a potential investor can calculate the approximate earnings for a particular amount that is invested within regular intervals of time (generally the interval is monthly), at the completion of a specific tenure.
Moreover, if the investor wants to create a financial cushion to fulfil his/her long-term objectives, like saving for retirement, then with the help of a SIP calculator, the investor can estimate the amount s/he will need to invest in order to reach the required corpus.
How Does a SIP Calculator Work?
SIP calculator or SIP investment calculator uses some important data to compute the absolute value of the investment. Here are some of the important steps that need to be followed while using the SIP calculator.
Step 1- Firstly, the investor will have to enter the monthly SIP amount that he/she wants to invest. In case of mutual fund investment, a minimum amount of Rs. 500 can be invested per month. Whereas, for other investment schemes, the minimum amount of investment is Rs. 1000 per month.
Step 2- The next step includes an evaluation of the possible rate of return on the investment. On the basis of the fund’s track record, the process of evaluation is completed.
Step 3- The third step includes the tenure of the investment, in case of a SIP maturity calculator. It is very important for investors to decide the time period for which they want to stay invested. Generally, the minimum tenure to stay invested in a SIP is for 6 months. However, in order to gain high returns on one’s investment, it is better to stay invested in a SIP for a longer tenure.
One can use a SIP calculator online. The investors can change the variables numerous times in a SIP investment calculator and get an estimate of the returns that they can earn on their investment. However, while using a SIP calculator, the investor must keep in mind that the calculator accounts for the possible inflation rate and capital gains tax while computing the value of the investment.
What is a Lump-sum Calculator?
A lump-sum calculator calculates the maturity amount of a one-time or lump-sum investment made by the investor. You need to enter the amount of investment, tenure of investment and expected rate of return to estimate the maturity amount and the returns on investment.
Benefits of Mutual Fund SIP Return Calculator
Let’s take a look at some of the benefits of a mutual fund SIP Return calculator.
1. With the help of a SIP calculator or SIP investment calculator, investors can efficiently and strategically plan their investments. SIP calculator simplifies the complex calculations and helps investors to estimate the results, which enables them to make the right investment decision.
2. The insured only needs to enter the details and the result is displayed immediately.
3. SIP calculators can be used online, free of cost.
4. SIP calculators simplify the process of investment both for experienced investors and first-time investors, alike.
Thanks to a user-friendly interface, investors need only provide a few variables in order to know their SIP returns.
Just like SIP return calculator, it is a tool that enables the investors to plan SIP investments easily in a matter of a few seconds. It helps investors accomplish their financial goals as per their investment objectives.
With the help of SIP planner, the investors have an extra-edge. In a matter of a few seconds, it makes SIP investment-related calculations easy. Planning investments online enable investors to save time and invest from the comfort of their homes.
SIP planner gives an investor complete freedom and liberty to take charge of his investments. Thanks to the technological advancements, an investor doesn’t have to depend on anyone to plan and calculate his/her investments. They are, now, free to manage their investment portfolios. With such investment tools available online, no one will be able to deceive or cheat the investors who are new to the world of investments.
SIP planner is a calculator that computes the amount to be invested on the basis of details such as:
1. The amount an investor wants to invest on a monthly basis
2. The expected return rate on an annual basis
3. The desired period of investment
The tools such as SIP return calculator and SIP investment calculator make calculations easier and faster. One can use this calculator to get an idea of the potential returns on the investment.
What is Delay Cost Calculator?
Delay Cost Calculator aids you in understanding the impact of delaying your systematic investment by a particular year. You just have to put in your monthly investment amount, tenure of the investment, the anticipated return rate and the anticipated delay in the investments. Delay Cost Calculator shows the amount of maturity if the investment was spread over a planned number of years and the amount of maturity in the delayed time and the cost of this delay.
What is SIP Advanced Calculator?
SIP Advanced Calculator is an advanced form of the simple SIP Calculator. This calculator helps in evaluating the return after inflation. This tool gives a better idea of the maturity value considering inflation. You have to select the amount of monthly investment, expected rate of return, inflation rate to arrive at the maturity value, pre-inflation and post inflation, and tenure in years.
Q1. Is SIP a mutual fund?
A1. People tend to believe that SIP is either a mutual fund scheme or different from a mutual fund. Nevertheless, the fact is SIP is the investment style and not a scheme or fund or any investment avenue or a stock. SIP is a vehicle to make a periodical investment in funds or schemes of your choice.
Q2. Can I start SIP Online?
A2. Yes. You can start a SIP online. You can make use of internet banking to start with online SIP.
Q3. Can SIP amount be reduced?
A3. Yes, you can reduce the amount of your monthly SIP by stopping all or some of them and re-start a new one with a lower sum.
Q4. How can I cancel a SIP?
A4. If you’ve started your SIP in an online mode, you can cancel your SIP by choosing ‘Cancel SIP’ option for your upcoming transactions. However, if you’ve started SIP offline, you need to visit the nearest branch or get in contact with a relationship manager to have your SIP cancelled.