HDFC SIP Calculator - Calculate returns on SIP Investments Online

SIP is the abbreviation for a Systematic Investment Plan wherein an investor can invest a fixed amount regularly in the mutual funds of their choice. In this way, with this financial instrument, a fixed amount is deducted from the savings account of the investor every month and is invested in the Mutual Funds of their choice. One can opt for monthly, weekly, or quarterly SIP plans.

HDFC is one of those financial institutions that provide an individual an option for investment in Mutual Funds via SIP. In addition to this, the company also offers the benefit of HDFC SIP Calculator to its investors. This SIP Calculator by HDFC helps the investors to calculate the returns that they can get by investing their money in such funds.    

How Does HDFC SIP Calculator Work?

In the HDFC SIP Calculator, one needs to input different parameters as per his/her preference and the calculator then provides actionable results with a complete insight into the performance of the HDFC fund. Some of the best direct mutual funds offered by HDFC mutual fund are HDFC Balanced Advanced Growth Fund, HDFC Small Cap Fund-Growth, HDFC Equity Savings Fund Growth, and HDFC Mid-Cap Opportunities Fund-Growth.  

The SIP Calculator of HDFC works on a very easy philosophy and is backed-up by an intelligent algorithm. An investor must mention desired values in different fields of this calculator. Some of the common fields of this calculator are – expected percentage of return, the desired value of corpus at maturity, investment amount per month, specific HDFC fund on which the investor is counting as well as period of investment. With the help of these inputs, the calculator will give the best possible result after scanning different direct funds of HDFC.

In this way, one can meet his/her long- and short-term goals for sure by getting a strategic guide from the SIP Calculator of HDFC.

This calculator uses the below-mentioned formula for calculating the returns from the SIP returns of an individual:

A = M x [{(1 + I) ^b – 1} / I] x (1 + I)

Where A is the amount that will be received on the maturity of the investment, M is the amount that is periodically invested, b is the number of payments that have already been made, and I is the applicable interest rate.

For example, if one wants to invest Rs.2, 000 every month for 12 months at the rate of 14%, then the amount he/she will get on the maturity will be:

A = 2000 x [{(1+14) ^ 12 – 1} /14] x (1+14)

A = Approximately 25, 900

Note: The investor should know that the rate of interest on SIP varies as per the conditions of the market. Therefore, they must be conscious at the time of data entry on the HDFC SIP Calculator.

Mentioned below are the returns that one can avail by investing in some of the top HDFC SIP Mutual Funds:

Fund Name

1 – Year Return

3 – Year Return

HDFC Mid-Cap Opportunities Fund

-10.49%

4.9%

HDFC Hybrid Equity Fund

1.58%

8.61%

HDFC Equity Fund

-5.95%

8.53%

HDFC Top 100 Fund

-0.38%

9.63%

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

How Can an HDFC SIP Calculator Help You?

Many investors are considering SIP's most preferred choice for investing especially in mutual funds. The main reason for the same is SIP's nature to allow its investors to invest in a small amount of capital in a specific period instead of a lump-sum payment at once. Moreover, it is one of the lucrative ways of investment that allows individuals to get a much more controlled approach towards investment.

In addition to this, the SIP calculator HDFC is one of the best tools that enable an individual to know the future value of the amount that he/she needs to invest to get the desired amount in the future. Mentioned below are some of the major benefits of using HDFC SIP calculator:

  • It helps the investors to make an informed decision related to the amount they wish to invest in.
  • The calculator also helps the individuals to know their periodic amount of SIP that helps them to achieve a goal.
  • It also helps the investors to get the returns that they will receive through their investment.
  • This calculator allows the investors to calculate their returns of SIP investment if they have selected to top-up their amount every year.

Advantages of Using HDFC SIP Plan Calculator

The investors can get the following benefits by using HDFC SIP calculator:

  • It enables the investors to calculate the total value of the investment when the investment tenure gets over.
  • It saves inaccuracies and time of manual calculations.
  • This calculator helps the SIP investors to invest in a well-planned manner and as per their expected returns.

In this way, we can say that the SIP calculator HDFC is one of the smartest and useful ways of investment so that the investors can make a comprehensive decision about the investment.

How to Use HDFC SIP Calculator

Mentioned below are the steps of using this calculator:

  • Step 1: Select the mutual fund scheme that one wants to invest in.
  • Step 2: Enter the amount that one wishes to make.
  • Step 3: Select the period of investment.
  • Step 4: Click the calculate button.

HDFC SIP Calculator - FAQs

Question 1: Is SIP a mutual fund?

Answer: A Systematic Investment Plan or SIP allows you to invest a fixed amount of money at regular intervals in a mutual fund. To understand this, let us take an example if a person starts a monthly SIP and starts investing Rs.100 in it, then this amount will automatically be deducted from his/her account every month and will be invested in a mutual fund on the pre-decided date. In this way, SIP is an automated plan of regular investment in some mutual fund schemes.

Question 2: What is the process to begin investing in SIP?

Answer: There are two methods of investing in a SIP:

  • Physically: Under this method, one has to fill the physical form of a selected mutual fund scheme. With the purchase request form for the first time investment, one has to attach a cheque and then submit it to the nearest HDFC Bank branch.
  • Online: One can as well begin his/her SIP online by logging to the net banking account and then opting for the investment in the mutual funds.

Question 3: How can one select the correct date for SIP?

Answer: There is no certain formula or process of choosing the right date for SIP. It completely depends on an individual to select the SIP date when he/she has funds in his/her account to direct debit. Generally, it is advised to select a date after the 10th of every month as by then most of us have enough funds in our accounts.

Question 4: What will happen if I miss my date of SIP payment?

Answer: The auto-debit feature is associated with every SIP payment you opt for. So, it is impossible to miss any date of SIP payment. The specific amount for SIP is auto-debited from the selected bank account on your selected SIP date.

Question 5: What if I do not have enough amount in my bank account?

Answer: Your SIP will remain active even if you do not have enough funds in your bank account for any reason. However, the only glitch is that you will miss the installment (s).

Question 6: Is it possible to reduce the SIP amount?

Answer: You can either begin a new SIP with a new and lower amount or stop your present SIP.

Written By: PolicyBazaar - Updated: 14 April 2021
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