SIP or systematic investment plan is an investment mode through which you invest a portion of money in a mutual fund monthly. The frequency of the mutual fund investment through the SIP mode can be monthly, quarterly, weekly, or even yearly. You can invest systematically through the SIP mode without worrying about market volatility and timing. However, you must know the required investment amount in case you are opting for a SIP investment.
What is SIP calculator?
A systematic investment plan or SIP calculator is a tool that can help you assess either the returns you can enjoy or the required investment amount through monthly SIP investments. These online SIP calculators help you determine the required investment amount based on factors like the expected returns and frequency of investment.
How do SIP calculators work?
SIP calculators involve factors like the frequency of investment, rate of return, investment amount, and investment duration. Enter details such as financial goals, the expected annual rate of returns, and the investment duration to learn the required monthly amount to invest in SIP.
How to use SIP calculators?
SIP calculators can help in determining two things. Firstly, it can help you ascertain the returns you can enjoy when you invest in SIP. The other way SIP calculators can help you is how much you must invest through SIP. Enter the amount you plan to invest in SIP monthly or your financial goal. Afterwards, enter the investment duration and the expected rate of return.
Why touse SIP calculators?
Some of the reasons you should consider using SIP calculators are:
They can help in goal planning
A SIP calculator can help you in planning for your various life goals. For instance, you are planning to purchase a house in three 3 years. With the help of this online tool, you can ascertain the monthly SIP investment you need to make for saving money to achieve the goal. If have identified the house you want to purchase, calculate the required investment amount. The investment amount is determined based on the expected return.
They help identify the target amount
These online SIP calculators compute the final amount by considering a few factors. These factors are the duration & frequency of SIP investments and expected returns (in percentage). They can help you reach your financial goals, like funding your child’s education, buying a house, or building a retirement corpus.
They help in tracking your progress
These tools can assist you in tracking your progress towards your financial goals. These calculators can help you adjust your investment strategy to help you reach your financial goals.
They help in decision making
SIP calculators are an effective tool in transforming unsure investors into aware investors. These online tools help you take the right investment decisions.
If you are investing in mutual funds through SIP, consider calculating the expected returns or monthly investments with the help of this online calculator. If you are presently investing in mutual funds through the systematic investment plan mode, use the SIP calculator to calculate the future value of your investments.