A Mutual fund SIP calculator is a tool which helps you to Calculate the SIP return at the end of a specific term for a specific amount which is invested periodically. It also enables you to calculate how much money you have to invest for a particular time so that you can achieve the objective of your financial goal.
How does a SIP calculator work?
SIP Plans or returns are calculated based on compound interest. You have to enter the amount you want to invest every month, choose several years you want to continue the investment and the calculator will automatically calculate the amount of return.
On these frameworks, an investor calculates his SIP investment.
- Investment amount per month
Investment amount per month is the amount that will be invested every month. It is a fixed amount. For example, if a sip is of rupees interval 5,000 per month is fixed, then the mutual fund SIP calculator will assume that every month at the amount of rupees 5000 will be invested in the given fund.
- Total number of payments
The total number of payments means the term mutual fund sip; the total number of payments you are going to invest in a SIP.
For example, an investor wants to make 24 payments for a fixed amount for about 2 years.
- Expected Annual return
Annual returns mean the investors are expecting a return from their investment in the yearly basis. However, it is not possible to know the exact return, but just for a reference, we can use the past returns percentage. The fluctuation can be there in numbers only to see the total value in a different scenario.
What is Systematic Investment Plans (SIP)?
Systematic Investment Plans are the abbreviation of SIP. It is an investment strategy where an investor does the investment to build up their wealth over a long period. In this type of investment, a fixed amount is invested for over a particular period at a regular interval. SIP plans do not require a huge investment. Through a SIP, an investor can invest with just a small amount of ₹500 on a monthly, quarterly or annually basis on a Mutual fund d schemes.
What are the benefits of mutual fund SIP calculator?
SIP calculator helps investors make their payment for Mutual Fund Investment plans easily and quickly. SIP calculator is useful for both experienced and new investors. You need three variables to calculate the details of your SIP plans very quickly.