Axis Bank SIP Calculator

What is SIP?

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.

What is Axis Bank SIP Calculator?

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.

Benefits of Using Axis Bank SIP Calculator

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

How Does Axis Bank SIP Calculator Work?

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

Illustration

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)

Advantages of Using Axis Bank SIP Calculator

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

Axis Bank SIP Calculator FAQs