Axis bank, earlier known as UTI Bank, is one of the renowned and top financial sector banks in India for a long time. Axis Bank offers various schemes and policies for their customers which helps them build a substantial financial corpus at the hour of need. Axis Bank, like any other bank or mutual fund house, offers a variety of Mutual Fund schemes in the form of SIPs which are highly popular amongst the youth in India these days as the returns are better than other investment schemes if invested for a long period of time. Axis Bank SIP Calculator helps in the computation of the returns an investor will receive when making a SIP investment.
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For building a deeper knowledge about the SIP Calculator, it is important to understand what exactly SIP or Systematic Investment Plan is. A SIP is a type of investment under the Mutual Funds category that helps the investor invest regularly in a mutual fund for a pre-defined tenure to attain great returns at the end of the scheme. The duration of regular investments in a SIP can be either, monthly, weekly, or quarterly as per the convenience of the investor.
Systematic Investment Plans have achieved great popularity amongst the masses over the past few years because of their great returns, easy accessibility, and hassle-free investments. Axis Bank SIP Calculator is a financial tool that helps in the SIP returns calculation with just a few basic details. With the help of the Axis SIP Calculator, the investor can have a clear understanding of how many investments they have to make to achieve their desired financial targets. Due to various factors related to the financial market, actual returns may vary from the calculated amount.
A Systematic Investment Plan is considered better than the lump sum payment method under the Mutual Fund category because SIP is considered in bringing a financial discipline in an investor’s life that helps in developing a habit of regular savings. Axis Bank SIP Calculator is a beneficial tool and has the following benefits:
Best for first-time investors as investing is very easy and requires minimal details
Provides accurate estimation when compared to manual calculations
Easy and hassle-free use as the investor has to put in the basic details and results are reflected instantly
Easy analysis because of the graphical representation
Offers assistance as to how much an investor has to put in to achieve the desired goal
At the end of the tenure, the following formula is used for the computation of the returns that the investor will receive:
FV = P x ({[ 1+ i ] ^ n-1 } / i ) x (1+i)
To elaborate:
FV = Future Value (Maturity amount to be received)
P = Amount that the investor invests
i = The rate of interest periodically
n = Total number of payments made by the investor to date
Suppose, an investor Mr. X invests Rs. 1,000 in his Axis Bank Systematic Investment Plan for a tenure of 1 year, that is, 12 months at a rate of interest of 12%. His future estimated returns will be as follows:
Monthly returns = 12% / 12 = 0.01
Now,
FV = 1,000 ({[1 + 0.01] ^ {12 – 1} / 0.01) x (1 + 0.01)
FV = Rs. 12,809 yearly (approximately)
Just by entering a few basic details in the Axis Bank SIP Calculator, an investor is able to compute the estimated returns they will receive at the end of the policy tenure. this hassle-free and easy-to-use tool are highly beneficial and the following details are required to get the return value:
Step 1: The monthly amount an investor is willing to invest
Step 2: Mutual fund’s current rate of interest
Step 3: The period for which an investor is willing to invest
Step 4: Maturity value will be reflected just by a click
Following advantages of using Axis Bank SIP Calculator over manual calculation are:
Easy usage
Accuracy in results
Computation of return value is quicker compared to manual calculation
Available for all the access
It helps in planning the future more effectively