Kotak SIP Calculator

Kotak Mahindra Bank is an Indian bank that offers an array of financial services to its customers across various classes. Variety of Mutual Funds offered by Kotak Bank comes with a SIP investment option as well that aims at helping investors fulfill their financial objectives with affordable regular intervals. With the help of the Kotak bank SIP Calculator, an investor understands how much investment is required throughout the tenure to yield desired returns.

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Kotak SIP Calculator
  • SIP
  • Lumpsum

Monthly Investment

₹500 ₹1L
Enter Monthly Investment

Total Investment

₹500 ₹10L
Enter Total Investment

Expected Rate of Return (Yearly)

1% 20%
Expected Rate of Return (Yearly)

Time Period

1 Year 30 Years
Enter Time Period
Total Investment
Interest Earned
Maturity Amount

What Is SIP and How Does It Work?

It is not easy for all classes of investors to purchase mutual funds as a whole and hence Systematic Investment Plans came into existence. SIP is one of the methods of investing in any mutual fund and unlike the lump sum method, where regular investments are made for a pre-defined long-term period for great returns. Due to its increasing popularity, more and more investors, both beginners and experts, have started investing their money in SIPs.

SIPs are considered better than the Lump sum option when it comes to Mutual Funds because deposits in SIP are made at regular intervals without overburdening your pocket as is the case in the lump sum method. Some of the top reasons one should invest in a SIP are:

  • It helps inculcate a habit of savings in an individual that brings discipline in their life

  • Serves a dual purpose of investment and savings

  • Investments as low as Rs. 500 can be made in some SIPs

  • Eliminates financial burden during the financial crisis

  • Helps create a decent financial corpus

One can invest their money in SIPs through any reliable portal of investment and easily start investing after the completion of KYC.

Kotak Systematic Investment Plan 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. Kotak 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 Kotak Bank 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.

How to Use Kotak SIP Calculator?

Kotak Systematic Investment Plan tool is easy to use and hassle-free with minimal complications involved. The following information needs to be entered in the Kotak SIP calculator to compute the maturity amount:

  • The monthly amount that the investor wishes to invest

  • Current Rate of return offered on the particular mutual fund

  • Total tenure the investor wishes to invest for

  • The maturity value will be computed in seconds

How Does Kotak SIP Calculator Work?

The following formula is used for the computation of maturity value received at the end of SIP investment tenure:

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. Karan invests Rs. 5,000 in a month at 14% through ELSS Fund SIP. If he selects the tenure of 10 years, then the returns will be:

FV = 5,000 x ({[ 1 + 0.14] ^ 120 – 1} / 0.14) x (1 + 0.14)

FV = Rs. 13,10,000

Total returns = Future Value – Invested Amount throughout the tenure

Total returns = Rs. 13,10,000 – Rs. 6,00,000

Total returns = Rs. 7,10,000

Benefits of Kotak SIP Calculator

One can invest in mutual funds in 2 ways:

  • Systematic Investment Plan or SIP

  • Lump-sum

A SIP is considered a better investment option when compared to the lump sum method of investment in mutual funds 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

Kotak (SIP) Systematic Investment Plan Calculator is a beneficial tool in the following ways:

  1. Accurate Estimations

    Even though it is a known fact that the financial market is volatile in nature and keeps on fluctuating from time to time, returns calculated on the Kotak SIP calculator may vary from the actual returns. Still, SIP Calculator provides close enough results that help the investor invest more confidently.

  2. Easy and Hassle-Free Use

    It is very easy to use Kotak SIP Calculator. All an investor has to do is put in the basic details on the SIP calculator like monthly invested amount, expected rate of return, the tenure of investment, and maturity value will be calculated within a blink of an eye.

  3. Best for First-Time Investors

    As the Kotak SIP Calculator is an easy-to-handle tool, hence it is considered one of the best financial tools for investment calculation. With minimum details required, Kotak SIP Calculator provides accurate results helping first-time investors invest freely.

FAQ's

  • Q. How is SIP Calculated?

    Ans: The following formula is used to compound the SIP returns with the help of SIP Calculator:
    FV = P x ({[ 1+ i ] ^ n-1 } / i ) x (1+i)
    Here,
    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
    Example, If Rahul invests Rs. 1,000 for 12 months at the rate of 12% in a Kotak bank SIP, then is maturity amount at the end of the tenure will be:
    FV = 1,000 ({[1 + 0.01] ^ {12 – 1} / 0.01) x (1 + 0.01)
    FV = Rs. 12,809 yearly (approximately)
  • Q. Does SIP have a lock-in period?

    Ans: Open-ended mutual funds do not come with a lock in period. However, the lock in period depends completely on the mutual fund purchased. ELSS mutual funds come with a lock in period of 3 years. Other close-ended mutual funds also come with a lock in period.
  • Q. Can I withdraw my SIP after some time?

    Ans: A normal SIP can be withdrawn anytime as per the investors’ convenience. Although, if it is an ELSS Equity Linked Savings Scheme, it comes with a 3-year lock-in period.
  • Q. Can SIP save taxes?

    Ans: While investing in ELSS (Equity Linked Savings Scheme) Mutual Funds, the investor is allowed to claim tax deductions up to Rs. 1,50,000 under Section 80C of the Income Tax Act, 1961.
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