SIP Calculator
Calculation Result
Minimum value allowed is ₹500.
SIP Calculator Device: Complete Manual
If you are planning to invest in mutual funds, then the SIP (Systematic Funding Plan) calculator can prove to be a very important tool for you. This device simplifies your investment plans and estimates the potential returns from your investments. In this article we will learn what is SIP, how the SIP calculator works and how it helps you fulfill your financial dreams
What is SIP ?
SIP, i.e. Systematic Investment Plan, is an investment plan in which you invest a fixed amount in mutual funds on a regular period (monthly, quarterly etc.). The purpose of SIP is to create a large amount by investing small amounts, which can give you the right returns in the end. Investing in SIP helps you take advantage of the benefits of rupee value averaging and compounding
What is SIP Calculator ?
The SIP calculator is an online device that estimates the potential growth and returns of your investments. In this, you can enter data such as your monthly investment amount, interest rate and investment period to estimate how much amount you can get at the end of the investment. This is useful in determining and planning your investment dreams
Why use SIP calculator ?
1. Readability: It shows you the possible results of your investment, making it easier to understand your financial dreams
2. Time saving: Instead of doing manual calculations, this tool provides concise and accurate estimates
3. Goal setting: Helps you set your financial goals and plan to achieve them
4. Economic area: SIP promotes regular investment, which helps to maintain the financial theme.
How to use SIP calculator ?
SIP calculator is quite easy to use. For this you have to enter the following records:
Monthly investment amount The amount you want to invest in SIP every monthly
Interest rate (expected return) Estimated annual return from the mutual fund.
Investment period: The entire period of investment (such as five, 10 or 15 years).
How does the SIP calculator work ?
The SIP calculator estimates the growth of the investment using the system of compounding
A = P Example frac{{(1 + r)^n - 1}}{r} Example (1 + r)
Here:
A = Final investment amount
P = Monthly investment amount
r = Monthly interest rate (annual rate divided by 12)
n = Total number of investments (total number of years raised to 12)
Based on this method, the calculator grows your investment based on compounding and gives an estimate of the final amount
Example
Suppose you invest Rs 5,000 every month, expecting a 10% annual return, and want to stay invested for 10 years:
Monthly investment: Rs 5,000
Interest rate: 10% per annum
Duration: 10 years (120 months)
According to the SIP calculator, your total investment in this period could be Rs 6 lakh and the estimated profit could be around Rs 3,93,000. So, your total amount after 10 years would be around Rs 9,93,000
Benefits of SIP calculator
Post a Comment