Canara Bank SIP Calculator

What is SIP?

SIP or Systematic Investment Plan is an investment option type of Mutual Funds^^ provided to the investors. It involves pocket-friendly regular deposits, pre-defined tenure, and great returns making it an affordable and popular investment option amongst new and old investors. Regular investment in a SIP can be either monthly, quarterly, or weekly as per the investor’s convenience.

Why to Invest in SIP?

Even though Systematic Investment Plans are gaining popularity these days, it is important to understand all the aspects of an investment before putting your hard-earned money in it. SIP is a way of investment in mutual funds as every investor does not have the capacity to invest in it directly. Under the SIP scheme, an investor is issued some units of a mutual fund as per the invested amount. SIPs are convenient, easy to invest in, and offer great returns. Here are some of the reasons why an investor should opt for SIPs as an investment option:

• It develops a disciplined savings habit in an individual that brings financial peace in their life

• Works both as an investment as well as a savings option

• Some SIPs allow monthly investments to be as minimal as Rs. 500

• Systematic Investment Plan scheme helps in eliminating financial burden during any financial crisis

• It helps in creating a decent financial corpus after retirement

Deposits can be made in a SIP through any reliable portal of investment after the completion of KYC.

Canara Bank SIP Calculator

SIP Calculator is an easy-to-use online financial tool provided by almost all the banks and financial institutions that offer Systematic Investment Plan schemes to their customers. The main purpose of a SIP calculator is to make the life of an investor easier. An investor, while using a SIP calculator can determine the amount they need to invest in order to attain their desired financial corpus in the future. Canara Bank SIP Calculator is one of the easiest tools in the market that helps attain the desired results in seconds for any complex financial calculation related to Systematic Investment Plans.

It is important to note that sometimes the computed results on the Canara Bank SIP Calculator and actual results may vary keeping the financial market volatility in mind.

How to Use Canara Bank SIP Calculator?

Usage of the Canara Bank Systematic Investment Plan Calculator is as easy as one can think of. All you have to do is put in some of the basic details related to the Canara Band SIP scheme on the SIP calculator and results will be reflected in no time on your screens. Here are a few simple steps an investor needs to follow in order to calculate the Canara Bank SIP returns:

Step 1: Drag the slider to select the amount you wish to invest monthly

Step 2: Select the expected rate of return you wish to attain yearly by moving the slider

Step 3: Choose the tenure for which you wish to invest in the BOI SIP scheme

Step 4: The Total Invested Amount, Total Interest Earned, and the Maturity Amount will be shown on your screen

How to Calculate the Canara Bank SIP Returns?

The below mentioned formula is used for the computation of returns for Canara Bank SIP schemes:

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

Here is the elaboration:

FV = Future Value (The amount to be received after maturity)

P = Amount that the investor invests

i = The rate of interest periodically, that is, annual return rate percentage / 12

n = Total number of months

Illustration

Mr. XYZ invests Rs. 1,000 every month in his Canara Bank SIP scheme for a tenure of 1 year at a 12% interest rate. His Future estimated maturity return value will be:

Future Value = 1,000 ({[1 + 0.01] ^ {12 – 1} / 0.01) x (1 + 0.01)

Future Value = Rs. 12,809 yearly (approximately)

Highlights of Canara Bank SIP Calculator

An investor can opt for either of the ways to make investments in mutual funds, that is,

• Lump-sum, and

• Systematic Investment Plan or SIP

Investors with moderate to low-risk appetite generally consider SIPs as a better investment option in comparison to the lump sum method of investment in a mutual fund because:

• It inculcates a habit of regular savings.

• One can deposit money at regular intervals without being overburdened to pay all the amount in one go.

• Pocket-friendly deposits can be made monthly keeping the availability in mind

Canara Bank Systematic Investment Plan Calculator is a beneficial tool in the following ways:

• Great investment option for beginners.

• Minimal details are required to make an investment

• Calculators provide quick and accurate results in comparison to manual calculations.

• The hassle-free tool with easy-to-understand options.

• Provides assistance to investors as to how much they should invest to fulfill their future goals.

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