Use SIP Calculator to know the future value of your SIP investment.
How are SIP investments calculated?
That is the main inquiry from many investors. The answer is to use an online mutual fund SIP calculator.
The practice of regular investing is important. A Systematic Investment Plan, or SIP, is the ideal investment tool to assist you in maintaining your mutual fund sip. You can determine the total return on your monthly investment using this SIP calculator.
What kinds of SIPs are available?
The most popular SIPs in the market fall into one of four categories:
- Flexible SIP:
With a flexible SIP, you can modify the SIP investment amount.
- Step-Up SIP:
You can increase your SIP investment amounts through a step-up, also known as a top-up SIP, at fixed intervals.
- Perpetual SIP:
A perpetual SIP is one that has no set tenure or expiration date. It is an investment that lasts indefinitely.
- Trigger SIP:
A trigger SIP is an investment that operates in response to specific events that you specify as triggers. For instance, You could set a trigger that, if a scheme's NAV drops to a certain level, the SIP should be doubled.
How to invest in SIP?
Here are three quick steps for you to follow if you're wondering how to start SIP:
Identify a mutual fund for your investment
- Multiple mutual funds are available on the market for you to choose from. Depending on your investment objectives and risk tolerance, choose a fund. To start your investment journey, complete the KYC procedure and submit an application form to the AMC online or offline.
- Choose the investment duration
- After choosing a fund, you must determine how long you want to keep your investment. Depending on your investment objectives, the time frame could be anywhere from six months to ten years.
- Invest regularly
- Choose the day of the month you want to invest in. A simple and convenient way to build long-term wealth is through SIP investments. For this reason, it's crucial to maintain your investment throughout the entire investment period.
What is a SIP calculator?
A Systematic Investment Plan (SIP) calculator is an online tool that determines the return on your SIP investment based on an estimated rate of return and the investment's future value after a specific number of years.
Since SIPs typically require a monthly payment, the manual computation can be a little time-consuming. Since each monthly contribution would have a different holding period at any given time, the returns for each of these payments will also vary.
The SIP calculator also estimates the monthly investment required to reach your desired saving target. In other words, it offers a road map for achieving your various financial objectives.
Without the use of a pen and paper, the calculator can be very effective at automatically performing complex financial calculations. You only need a few simple inputs, and the SIP calculator online quickly calculates the outcome.
There are typically three input boxes on a SIP return calculator for mutual funds. They are: Monthly investment amount, investment period, and expected annual returns.
How can a SIP Calculator Help You?
The Systematic Investment Plan calculator essentially bifurcates the future value of the SIP investment by providing investors with two numbers: the estimated return on the investment and the principal.
Therefore, assuming a specific rate of return and SIP contribution, you can use the SIP return calculator to get a general idea of how your investment will grow over a specific holding period.
The online SIP calculator allows you to indirectly account for the impact of inflation. By manually calculating the nominal rate of return you would anticipate from your investment based on your target real rate of return and the current rate of inflation, you could accomplish this. To begin investing in mutual funds, you simply need to use the manually calculated rate as your rate of return and enter it into the calculator.
Benefits of using the A2Z SIP calculator online
The advantages of using an A2Z SIP calculator can be summed up in the following points:
- The calculator is easy to use and estimates the returns that would accumulate from the small monthly investments quickly and easily. Investors can therefore strategically plan their investments in order to achieve their long-term financial objectives.
- Other than information on the investor's monthly investments, the duration of those investments, and the rate of return on the fund they invest in, no additional information is needed. The user-friendly interface is the result.
- The calculators are accessible online and cost nothing.
- The calculators make it simpler for investors of all experience levels to understand the ins and outs of SIP investments.
How to use the A2Z mutual fund SIP calculator
All you have to do is carry out the actions listed below:
Step 1: Enter the amount you want to invest in SIP in the "Monthly investment amount"
Step 2: Enter the interest rate
Step 3: Enter the years for which you want to do the investment
Step 4: Press the 'calculate' button.
As a result, you will get the return you will get post maturity.
Most small investors rely on SIP as the most dependable investment tool to mobilize their meager savings and invest them to achieve their long-term financial objectives. Invest in SIP to ensure that you can achieve your goals in the future even as inflation rises.