Mutual Fund SIP Calculator 2024

Mutual Fund SIP Calculator

SIP Calculator

SIP Calculator

What Is SIP (Systematic Investment Plan)? 

SIP is an automatic and safe method to invest in mutual funds and stocks. It lets you invest a certain amount at regular intervals. It can be weekly, monthly or quarterly, into a selected mutual fund. You can then configure the payments through UPI AutoPay or an e-NACH mandate. Through SIP, the initial money you invest earns interest. In the subsequent month, both the principal amount and the interest from the earlier month get interest. This effect of compounding returns is the major benefit of SIP.  

What Is A Mutual Funds SIP Calculator? 

A mutual fund’s SIP calculator or SIP Calculator allows you to ascertain the returns on your Mutual Fund investments. You can use this online tool just before you invest in mutual funds through a Systematic Investment Plan. With SIP, you can invest monthly, quarterly or weekly. So you can consider a calculator for the same to incorporate your SIP investments into your portfolio. Keep in mind that the tool will only provide you with an estimate of your investment. It will compute the wealth gain and expected returns. The actual return can be subject to numerous factors.  

Formula Used By SIP Calculator 

The formula used by the online tool to calculate expected returns is as follows: 

M = P × ({[1 + i]^n – 1} / i) × (1 + i) 

In the above formula: 

  • M is the total sum you will get upon maturity. 
  • P is the sum you invest weekly, monthly, or quarterly. 
  • n denotes the total payments you’ve made so far. 
  • i is the rate of interest  

How Should You Use Our SIP Calculator? 

Using the SIP Calculator of The Invest Advisory is quite simple. Follow these points. 

  1. Select your investment amount. It can be up to Rs. 1 Crores. 
  1. Now, select the type of investment. Choose between monthly, quarterly, or lump sum. 
  1. Next, select the number of years for which you desire to stay invested. It can range from 1 to 50 years. 
  1. Select the rate of interest. It can range from 1% to 100% of the SIP investment. 
  1. Our SIP Calculator will give you an estimate of the returns you can expect. The estimate will be for your total amount of investment, returns, and overall wealth accumulation. 

Why Should I Use The Invest Advisory’s SIP Calculator?  

Our SIP Calculator will reveal the worth of your SIP instalments when your investment tenure ends. You don’t need to engage in any complicated calculations. Simply enter the instalment, investment tenure, and expected yearly return rate. Let our calculator do the task. It will instantly give you the value of the money you are investing at the end of the maturity period. This will let you know about your SIP installments so you can stay ahead of your financial planning.  

With our SIP return calculator, you can do the following: 

  1. Plan your investment according to the amount and period. 
  1. Easily compute the total value of investments when your mutual funds’ tenure ends. 
  1. Be assured of getting the correct estimation.  
  1. Modify the elements in the calculator, such as amount, time period, and estimated rate, to assess different investment conditions.  
  1. Set attainable financial targets for yourself. 
  1. Find the monthly or quarterly SIP you need in order to meet a particular financial goal, such as buying a house or car.  

How Do You Begin Investing In SIP? 

To start investing in SIP, fill out a physical form of your preferred mutual fund. Choose a mutual funds scheme that gels well with your financial condition and your risk appetite. You will get a purchase request form. Attach a cheque for first-time investment. Then submit it at your bank branch. Another way to start investing in SIP is online through your NetBanking account after you have chosen an appropriate scheme. 

Frequently Asked Questions About SIP Return Calculator 

1. What will happen if I invest Rs. 3,000 a month in SIP for five years? 

Let us assume your rate of return is 12%. So, if you invest Rs. 3,000 monthly in SIP for five years, the expected total returns will be Rs. 67,459. The future value of your investment will be Rs. 2,47,459. 

2. Is investing Rs. 50,000 in SIP a good idea? 

If you invest Rs. 50,000 in SIP and the rate of return is 12%, you will accumulate a wealth of Rs. 1 crore in India in 15 to 20 years. However, you must factor in the inflation level and your risk tolerance, as they can increase the time it takes for you to reach Rs. 1 crore.  

3. How much should I invest in SIP? 

There is no maximum limit to investing in SIP. You can start with Rs. 500 monthly and keep investing according to your financial condition and investment goals.  

4. Which are the best mutual funds to get the highest SIP returns in India? 

Several mutual funds schemes give a good SIP return. The top ones include  Quant Mutual Fund. Quant Small Cap Fund, Nippon India Small Cap Fund, ​Motilal Oswal Midcap Fund, and SBI Contra Fund. 

5. Can a SIP go into loss? 

If the overall value of your mutual fund’s unit decreases over a period, then your SIP investment will show a decrease or loss. This is why the best SIP plans allow you to invest small sums of money rather than a lump sum.  

6. Does SIP have an interest rate? 

No. There is no interest rate of SIP. The return of your investment in SIP is according to how your chosen mutual fund is performing.  

7. How do I get Rs. fifty lakhs in five years with SIP investment? 

To get Rs. 50  lakhs in five years with SIP, you need to choose mutual funds that will give at least 15% returns. After that, if you can invest Rs. 55,750 for five years, you’ll be able to generate Rs. 50 lakh.