Aviva SIP Calculator

How Does Aviva SIP Calculator Work?

The Aviva SIP investment calculator uses four variables to calculate the expected returns of your mutual fund investments made through regular Systematic Investment Plans, or SIPs at the end of the investment period.

Example of SIP Calculation

To understand how the Aviva SIP Calculator functions, let's look at the following calculation.

Let's say you are new to investing and want to start with a small amount. You decide to invest ₹2,000 per month for the next 5 years, expecting an annual return of 12%. What will your future value be?

Understanding the Nuances:

Since you're investing monthly, and the return is yearly, we need to make them match. We’ll adjust the interest rate and the number of periods to match the monthly frequency.

Interest rate (i)= Annual interest/12 = 12% / 12 = 0.12 / 12 = 0.01

Total number of installments (n) = 5years x 12 = 60 months

Fixed Amount of SIP Installment (p) = ₹2,000

Formula = FV = [P x (1 + i)^ n-1/i] x (1 + i)

[2,000 x ((1 + 0.01)^{60} - 1) / 0.01] x (1 + 0.01)

After solving this, you get the future value ₹ 1,65,000.

So, you come to know that due to the power of compounding, your invested amount ₹1,20,000 (₹2,000 x 60) grows to ₹165,000. The longer it stays invested, the more it grows on its own growth (that's compounding!).

How to Use Policybazaar’s Mutual Fund SIP Calculator?

You can use Policybazaar’s Mutual Fund SIP calculator and find out your potential investment returns by following these steps:

If You Know Your Investment Amount

1. Monthly Investment Plan

   • Specify your planned monthly investment.

   • Provide the expected annual return.

   • Enter the number of years you'll invest.

   See the total estimated amount you'll have at the end using our SIP calculator.

2. Yearly Investment Plan

   • Enter the amount you plan to invest annually.

   • Provide your expected annual return.

   • Enter the number of years you'll invest.

   The mutual fund SIP calculator will show your estimated yearly returns and the total accumulated amount.

3. Lump Sum Investment

   • Specify the single amount you intend to invest.

   • Enter the anticipated annual return rate.

   • Indicate the investment duration in years.

   The SIP calculator will display your estimated lump sum returns and the total accumulated amount at the end of your investment period.

If You Know Your Goal Amount:

• Enter the total amount you want to save or generate through investments.

• Provide the investment time period in years.

• Mention the expected annual rate of return.

• The Policybazaar SIP calculator will instantly show the required monthly investment, your total investment, and the potential wealth you can gain.

What are the Advantages of the Policybazaar SIP Calculator?

Policybazaar SIP calculator is beneficial because of its efficient methods and quick results. Some of the benefits offered by the Policybazaar SIP calculator are:

1. Estimation:

   One of the first and foremost advantages of a policybazaar mutual fund SIP calculator is helping investors analyze their mutual fund investment returns, giving them an overall picture of how their regular contributions would grow.

2. Goal-Centric Planning:

   A policybazaar SIP calculator helps you estimate the amount required to invest in order to achieve your financial goals, such as retirement and wealth accumulation.

3. Calculative Investment Decisions:

   The policybazaar SIP calculator's display of potential mutual fund returns is based on calculations that help you make informed investment decisions driven by data.

4. Motivating Investment:

   Showing how regular small investments lead to a large corpus motivates you to invest and grow your money.

5. Investment Comparison:

   The policybazaar SIP calculator’s efficient methods help you compare different SIP plans quickly, helping you select an investment plan suited to your financial objectives.

Conclusion

The Aviva SIP calculator is designed to help investors assess their mutual fund investments returns. It is free, user-friendly, and provides a clear picture of how much your investments will grow by the end of your investment period. Accessing the Aviva SIP calculator is your first step on your investment journey to achieve your ultimate financial objectives.