SIP Calculator

Frequently Asked Questions

• What are the benefits of SIP?

  The following are the benefits of investing in a SIP:

  • You can invest in small amounts continuously

  • You can choose monthly auto-payment

  • Better long-term advantages than a one-time investment

  • No stress in regards to the market ups and the downs

  • Helps to plan the budget and manage expenses efficiently.

• Are SIPs equivalent to mutual funds?

  No, SIP is not equivalent to mutual funds. However, it is a medium of investing in mutual funds. In a SIP you will invest periodically than a lump sum amount.

• Is SIP safer than lump sum investments?

  Yes, SIP is a safer option than a lump-sum investment. Investment in a SIP has a low risk and the points of investment are spread out over a long period. The idea is simple the time the market is high, you can purchase some units of the fund, and the time the market is slow you can purchase the same unit on the equivalent amount.

• How can I cancel a SIP?

  If you have started your SIP in an online mode, you can cancel your SIP by choosing the ‘Cancel SIP’ option for your upcoming transactions. However, if you have started SIP offline, you need to visit the nearest branch or get in contact with a relationship manager to have your SIP cancelled. 

• 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.

• What is Delay Cost Calculator?

  Delay Cost Calculator helps in understanding the impact of delaying your systematic investment by a particular year. You are required to enter your monthly investment amount, the 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 online SIP Calculator. This calculator helps in evaluating the return after inflation. This tool gives a better idea of the SIP maturity value considering inflation. You have to select the amount of monthly investment, expected rate of return, and inflation rate to arrive at the SIP maturity amount, pre-inflation and post-inflation, and tenure in years.

• What are the types of SIPs available?

  To cater to the various requirements of the investors, generally, there are 5 different types of SIP plans available in the market. These are as follows: 

  • Top-up SIP

  • Perpetual SIP

  • Trigger SIP

  • Flexible SIP

• Can I renew a SIP?

  Yes, you can renew your SIP in case the existing SIP expires. To renew SIP, the investors need to quote the same FOLIO number (unique number allotted to each MF investor) through the financial advisor of his Asset Management Company (AMC). Generally, it takes 20-30 working days from the date of sending the request to renew the SIP plan.

• What is the need for a SIP inflation calculator?

  The inflation calculator helps to understand the impact of inflation on the money. This also enables us to understand the money that would be needed to meet the current expenses while keeping up with inflation.

• What if I invest 10000 in SIP for 5 years? 

  If you invest 10,000 INR in a Systematic Investment Plan (SIP) for 5 years, the final investment value will depend on the returns generated by the investments made through the SIP.
  Assuming an average annual return of 10% on your SIP investments for 5 years, the maturity returns will be approximately Rs. 16,105.

• Which SIP under 3,000 per month? 

  There are several SIP (Systematic Investment Plan) options available for investment under Rs. 3,000 per month; a few of them are as follows:

  • Large Cap Equity Funds: Axis Bluechip Fund, ICICI Prudential Bluechip Fund, and SBI Bluechip Fund

  • Multi-Cap Equity Funds: Mirae Asset Emerging Bluechip Fund, Kotak Standard Multicap Fund, and HDFC Equity Fund

  • Balanced Funds: HDFC Balanced Advantage Fund, ICICI Prudential Balanced Advantage Fund, and SBI Equity Hybrid Fund

  • Index Funds: HDFC Index Fund - Sensex Plan, ICICI Prudential Nifty Index Fund, and UTI Nifty Index Fund

  • Debt Funds: Axis Liquid Fund, ICICI Prudential Money Market Fund, and Aditya Birla Sun Life Savings Fund

• What is the SIP of 5000 per month for 10 years?

  If you invest Rs. 5,000 per month in a Systematic Investment Plan (SIP) for a period of 10 years, assuming an average annual return of 12% on your SIP investment, the calculation will be:

  • Total Investment Amount: Rs. 5,000 per month x 12 months x 10 years = Rs. 6,00,000

  • Investment value = [PMT x ((1 + r)^n - 1) / r]

  Where: 

  • PMT = Monthly investment amount = Rs. 5,000

  • r = Annual interest rate (assuming 12% divided by 12 for monthly investment) = 0.01 

  • n = Number of investment periods (months) = 10 years x 12 months = 120

  • Investment value = [5,000 x ((1 + 0.01)^120 - 1) / 0.01] 

  • Investment value ≈ Rs. 15,24,190

• What if I invest 30,000 in SIP for 5 years?

  A SIP of Rs. 30,000 for 5 years would have earned a profit of about Rs. 15, 31, 850.

• What are the uses of SIP calculator?

  • The SIP calculator helps to determine the amount in which you want to invest 

  • It gives you the total money you have invested

  • This calculator provides you with an estimated amount of the returns

• What are the four important principles of SIP? 

  • Start as early as possible 

  • Invest on a regular basis 

  • Invest the right amount 

  • Stay invested for the long tenure 

• What is the 15 Rule in SIP? 

  15 Rule in SIP is if you invest Rs. 15,000 per month for a term of 15 years in a stock that is offering 15% of interest rate on a yearly basis, then you will accumulate an amount of Rs. 10027601 at the last of 15 years. 

• What is Mutual Fund SIP Calculator? 

  A Mutual Fund SIP Calculator is a free online tool that helps calculate the returns you would earn on your mutual funds. 

• What if I invest 20,000 in SIP for 20 years?

  If you invest Rs. 20,000 per month in a Systematic Investment Plan (SIP) for a period of 20 years, the final investment value will be:

  • Assuming an average annual return of 10% on your SIP investment
  • Total Investment Amount: Rs. 20,000 per month x 12 months x 20 years = Rs. 48,00,000
  • Investment value = [PMT x ((1 + r)^n - 1) / r]

  Where:

  • PMT = Monthly investment amount = Rs. 20,000
  • r = Annual interest rate (assuming 10% divided by 12 for monthly investment) = 0.00833
  • n = Number of investment periods (months) = 20 years x 12 months = 240
  • Investment value = [20,000 x ((1 + 0.00833)^240 - 1) / 0.00833]
  • Investment value ≈ Rs. 2,58,72,355