SIP Calculator

FAQs

• Q1. What are the benefits of SIP?

  Ans: The following are the benefits of investing in a SIP:

  • You can invest in small amounts continuously
  • Choose for 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.

• Q 2. Are SIPs equivalent to mutual funds?

  Ans: 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.

• Q3. Is it true that SIP permits only equity mutual funds investments?

  Ans: You cannot only invest in SIP through equity mutual funds but also hybrid and debt mutual funds.

• Q4. Can I reduce my SIP amount?

  Ans: Yes, as per the needs an investor can easily either reduce or increase the amount of SIP.

• Q5. Is SIP safer than lump sum investments?

  Ans: Yes, SIP is a safer option than 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.

• Q6. Is SIP a mutual fund?

  Ans: People tend to believe that best SIP plans 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.

• Q7. Can I start investing in SIP Online?

  Ans: Yes, You can start a SIP online. You can make use of internet banking to start with online SIP.

• Q8. Can SIP amount be reduced?

  Ans: 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.

• Q9. How can I cancel a SIP?

  Ans: 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. 

• Q10. What is a Lump-sum Calculator?

  Ans: 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.

• Q11. What is Delay Cost Calculator?

  Ans: 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.

• Q12. What is SIP Advanced Calculator?

  Ans: 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.

• Q13. What is the maximum tenure of a SIP?

  Ans: As per one’s own requirement and suitability, the investors can choose to invest in SIP for the tenure of 6 months, 1 year, 5 years or 10 years. The individual can also opt for a perpetual SIP which continues forever, till the time one stop it.  

• Q14. What are the types of SIPs available?

  Ans: In order to cater to various requirements of the investors, generally there are 5 different types of SIP plans available in the market. These are as following. 

  • Top-up SIP
  • Perpetual SIP
  • Trigger SIP
  • Flexible SIP

• Q15. Can I pause my investments in a SIP?

  Ans: Yes, there are various mutual fund companies, which provide the option of pausing the SIP investment for a specific period of time. 

• Q16. Can I modify my SIP amount?

  Ans: Yes, you can modify the SIP amount as per your own requirement and suitability.  The flexible SIP option allows the investors to regulate the investment on the basis of the cash flow. In case of any financial crunch, the investors can choose to miss SIP payment for a few months and can start to reinvest in SIP when the financial condition stabilizes.

• Q17. How much can I invest in SIP?

  Ans: An individual can start making SIP investment with a minimum sum of Rs.500 and can invest up to the maximum as much as they want. There is no upper limit on the maximum amount of SIP investment. 

• Q18. How critical is it to select the right date to invest in SIP?

  Ans: As SIP is specifically designed to simplify the process of investment, there is no hard and fast rule to choose a particular date of investment. Investors can choose the right date to invest as per their own suitability. 

• Q19. Can I renew a SIP?

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

• Q20. What is SIP lump sum calculator?

  Ans: The lump-sum calculator directs the maturity sum of the current value lump-sum investment and even the one-time investment after specified years. All that needs to be done is duly to key in the sum that is to be invested, investment horizon in terms of years and the rate of return expected to establish the maturity sum and the investment earning.

• Q21. What is the need for a SIP inflation calculator?

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

• Q22. Is a Step-up SIP necessary?

  Ans: The step-up calculator gives the future value of the SIP investment when you increase the SIP periodically by a percentage given. When you step up the SIP investment periodically there are chances of building greater wealth. As the income grows the savings proportionately should be increased.