SIP Calculator – Systematic Investment Plan Calculator
Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. ASIP calculatoris a tool that helps you determine the returns you can avail when parking your funds in such investment tools. Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals. SIPs usually allow you to invest weekly, quarterly, or monthly.
What is a SIP Calculator?
A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately.
Thesemutual fund sip calculatorsare designed to give potential investors an estimate on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any).
This calculator will calculate the wealth gain and expected returns for your monthly SIP investment. Indeed, you get a rough estimate on the maturity amount for any of your monthly SIP, based on a projected annual return rate.
How can a SIP return calculator help you?
SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future.
ASIP calculator onlineis a beneficial tool, which shows the estimated returns you will earn after the investment tenure.
Few of the benefits of SIP calculators include –
- Assists you to determine the amount you want to invest in.
- Tells you the total amount you have invested.
- Gives an estimated value of the returns.
How do SIP calculators work?
A SIP plan calculator works on the following formula –
M = P × ({[1 + i]^n – 1} / i) × (1 + i).
In the above formula –
- M is the amount you receive upon maturity.
- P is the amount you invest at regular intervals.
- n is the number of payments you have made.
- i is the periodic rate of interest.
Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%.
then the monthly rate of return will be 12%/12 = 1/100=0.01
Hence, M = 1,000X ({[1 +0.01 ]^{12} – 1} / 0.01) x (1 + 0.01)
which gives Rs 12,809 Rs approximately in a year.
The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
How to use Groww’s systematic investment plan calculator?
You can use theSIP amount calculatorfrom Groww within a few clicks.
Just enter the monthly invested amount (the amount for which you have started the SIP), the number of years for which you want to stay invested, and the expected rate of return.
As soon as you input the value, the calculator will show you the estimated amount you can avail after your investment tenure is complete.
Advantages of using Groww systematic investment plan calculator
Groww offers thebest SIP calculator, which provides the following advantages –
- Plan your investment based on the amount and tenure.
- It helps you compute an estimation of the total value of investments at the end of your SIP tenure.
- Shows accurate results and helps you save time required during a manual calculation.
A systematic investment plan calculator ensures that your savings portfolio is as per your requirements and financial needs.
FAQs
The accuracy of SIP calculator results depends on factors such as the assumed rate of return, investment tenure, and consistency in investment amounts.
How much is $5000 for 5 years in SIP? ›
How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What if I invest $5000 a month in SIP for 3 years? ›
A monthly SIP of Rs. 5000 for 3 years would have become Rs. 2.38 Lakhs from the total of Rs. 1.8 Lakhs invested over the time period.
What if I invest $10,000 in SIP for 5 years? ›
Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
Is SIP 100% safe? ›
Is SIP safe or not? SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. To avoid this, you should invest in mutual funds when the markets are not overvalued.
What if I invest $1000 a month in SIP for 20 years? ›
If you invest Rs 1000 for 20 years , if we assume 12 % return , you would get Approx Rs 9.2 lakhs. Invested amount Rs 2.4 Lakh.
What happens if I invest 15 000 a month in SIP for 15 years? ›
Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.
What happens if I invest 20 000 a month in SIP for 5 years? ›
Value of INR 20,000 per Month in SIP
If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.
Is SIP better than FD? ›
Whether SIP is better than FD depends on your investment goals, horizon and risk tolerance. SIPs offer higher potential returns with more risk, while FDs provide stable, but usually lower, returns.
Is SIP tax free? ›
Is SIP tax-free? SIPs themselves are not tax-free, but they can be a powerful tax-saving tool. Here is why: SIPs are a way to invest in certain mutual funds, like Equity Linked Saving Schemes (ELSS).
List of Best SIP Funds in India sorted by ET Money Ranking
- Edelweiss Large & Mid Cap Fund. ...
- Motilal Oswal Focused Fund. ...
- Mirae Asset Large Cap Fund. ...
- UTI Flexi Cap Fund. ...
- DSP Flexi Cap Fund. ...
- Axis Focused Fund. EQUITY Focused. ...
- Canara Robeco Emerging Equities Fund. EQUITY Large & MidCap. ...
- Axis Bluechip Fund. EQUITY Large Cap.
Best SIP Plans in India in 2024
| Returns |
|---|
| Fund Name | 3 Years | 5 Years |
|---|
| Multi Cap Growth Fund ICICI Prudential | 17.36% | 13.61% |
| Equity Fund SBI | 16.9% | 14.63% |
| Equity II Fund Canara HSBC Oriental Bank | 15.99% | 12.31% |
7 more rowsIf you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.
How much money do I need to invest to become a millionaire in 5 years? ›
Let's say you want to become a millionaire in five years. If you're starting from scratch, online millionaire calculators (which return a variety of results given the same inputs) estimate that you'll need to save anywhere from $13,000 to $15,500 a month and invest it wisely enough to earn an average of 10% a year.
What ROI will double your money in 6 years? ›
You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
How reliable is SIP? ›
SIPs are generally considered safe as they allow for disciplined investing in mutual funds, but they are subject to market risks. Is SIP better than FD? SIPs offer the potential for higher returns over the long term compared to FDs, which typically offer fixed returns but lower potential growth.
Is there a chance of losing money in SIP? ›
Whether a SIP can incur a loss depends on the performance of the mutual fund in which the SIP is invested. If the value of the mutual fund's units decreases due to market conditions the SIP investment will also show a loss.
Is a SIP guaranteed? ›
About 90% of the SIPs go into equity-oriented mutual funds in which case the money is deployed in the stock markets, which carry a degree of risk and volatility. Since returns from stocks are not guaranteed, consequently returns from SIPs are not guaranteed either.
