Monthly SIP Amount(Up to 1 Crore)
Expected Return Rate (p.a)(9.50% to 19.55%)
SIP Period(1 year - 30 years)
|Interest Rate (%)||9.56 %|
|Invested Amount||₹ 14400000|
|Wealth Gained||₹ 12613666|
|Total Wealth||₹ 27013666|
In a recent study, it has been found that regular investing can help you accumulate your wealth at a much faster pace than saving occasionally. The habit of saving money by making systematic investments is called SIP or Systematic Investment Plan. A SIP calculator helps you calculate the total amount accumulated through regular investment.
When it comes to investing, one of the first things that you should do is choose a mutual fund that fits your needs. This can be easier said than done. There are so many different funds to choose from and so many nuances that might affect your choice. SIPs are an excellent tool for achieving financial goals, especially when these are interdependent with retirement and other long-term priorities. To create a proper SIP plan, you will need to use a SIP calculator. But first, let us introduce you to SIP and all its aspects to make it easy for you to understand the purpose of this SIP calculator.
What is SIP?
SIP allows people to invest a small amount periodically in mutual fund schemes instead of investing in a lump sum. SIP is a type of investment plan. SIPs are similar to mutual funds, but they allow investors to make small investments on a weekly, monthly, or quarterly basis instead of investing lump sums at once. The amount of money you invest via SIPs is usually comprised of your contributions plus any interest earned in the mutual fund portfolio, so as you invest over time the fund’s value increases. The amount of investment can vary as per the convenience of the investor and what they choose to buy in the scheme.
What is a SIP calculator?
A SIP(Systematic Investment Plan) Calculator is a useful tool that helps you determine your investment amount, the number of units you need to purchase, and the time frame for that. This can then be easily transferred to any brokerage account for investment. As per many financial experts, it is one of the best habits to get into is regularly investing in any form like a one-time lump sum investment or monthly SIPs.
Let's say you want to start with an investment of Rs 1 Lakh, you can invest in a SIP calculator and calculate the amount that you will accumulate by the end of a year or five years. While investing in a SIP is quite simple, it's not easy to calculate how much money you will end up investing. While banks do provide SIP calculators, they are often hard to use and require a lot of filling in information. But with the ReferLoan SIP calculator, you can easily find the results without even putting much effort.
How Does a SIP Calculator Come to Your Use?
Strategize your investment: Plan your investment in the short-term or long-term, with the help of the SIP Calculator. This calculator helps you calculate your investment requirement for the desired tenure and the amount that needs to be invested each month.
Calculate your End Wealth: SIP Calculator is an important tool for those who invest on a regular basis in mutual funds It gives you a clear idea about what kind of wealth you will have by the end of your SIP journey. You can use this to see how much you would earn from your investment, or compare the returns from one scheme against another. As long as you set your monthly SIP amount right and get it pumped into stocks with a good rate of return, your investments will blossom in no time.
Save Time and Efforts: This SIP calculator is one of the most accurate and time-saving tools for calculating SIP returns. Instead of doing a manual calculation, there is no need to manually calculate the monthly contributions and investment amount. The calculator automatically calculates both with simple inputs such as monthly investment and monthly payment. It has also been designed to ensure that any type of user can effortlessly use it without any prior knowledge or experience.
How to use a SIP Calculator?
Use this calculator to determine how much you will have when you invest for a certain period of time at a certain rate of return. Just enter the monthly invested amount (the amount for which you have started the SIP), the number of years you want to stay invested, and an expected rate of return. As soon as you input these values, the calculator will show you the estimated value of your investment after your tenure is complete.
Types of SIPs
Flexible SIP: A flexible SIP allows you to make changes to the SIP investment amount. It allows you to increase or decrease your investment. A flexible SIP lets you take advantage of market fall or rise and change your investments accordingly. If you’re looking to save up for a big purchase, flexible SIPs can provide flexibility over the course of your investment period. They allow you to make changes to the SIP investment amount and number of payouts throughout the year.
A step-up SIP gives you the option to increase your investment amounts at fixed intervals. You'll have the flexibility to buy more units over time as your income grows, or as your needs change. This could also work for you if you're starting small now, but expect income growth in the future.
A Perpetual SIP is an investment that continues indefinitely at a specified rate, without any end date or tenure to your SIP investment. A perpetual SIP ensures that you continue investing for the long term and take advantage of the power of compounding to build your wealth. This investment is ideal for those who have a long-term plan for wealth creation.
A trigger SIP is a type of investment that works based on the triggers you specify. For example, when the NAV of a scheme falls beyond a certain level, your SIP may double. If your goal is to make a large amount of money, then you must have strategies that are triggered when the stock market reaches a specific level. If you have a trigger SIP, then you can double your investment every time the stock market hits a fall.