SIP Calculator
Plan your financial goals by calculating the future value of your SIP investments.
Investment Details
Invested Amount
PKR 0
Est. Returns
PKR 0
Maturity Value
PKR 0
Yearly Investment Breakdown
| Year | Yearly Investment | Interest Earned | Closing Balance |
|---|
All You Need to Know About Mutual Funds and SIP Calculators
A SIP or Systematic Investment Plan is one of the easiest and best ways to invest to grow wealth for an individual in India. Investing in SIP is making a monthly investment in a certain mutual fund for a fixed sum of money. SIP’s real power is built on the principles of rupee cost averaging and the power of compounding. A SIP calculator is a tool for visualizing and forecasting the power of SIP growing an investment in mutual funds. This blog will share the definition of SIP, its working, and the advanced SIP calculator.
How to Use the SIP Calculator?
We customized the tool to simplify the forecasting and projection of your investment in the future:
Investment Amount: State the total amount of investment you will send via SIP monthly.
Anticipated ROI: Specify the yearly returns you expect. They might not be guaranteed, but in the long term, equity mutual funds have given returns of 12-15%.
Define the Time Period: Specify the duration of your residence with the investment.
Add Annual Step-up (Advanced Feature): This is a truly potent option to include in planning. Specify the SIP amount increase (in $) per month for which the increase is attributed to an increase in salary (for example, ten percent, which is considered to be a standard salary jump).
This will significantly improve the corpus at the end of the investment period. For standard SIP, you may wish to keep it at 0%.
Analyse Your Results Instantly: The results refresh and show you what’s new.
Investment in SIP Mutual Funds gives the investor a predetermined corpus and allows the SIP amount to appreciate.
Daily, a person can gauge the corpus from a graph that depicts SIP vs the total predicted amount. This also gives the investor a clearer perspective on how investments appreciate over a period.
What is a Systematic Investment Plan (SIP)?
SIP is a technique used for investment in mutual funds. Instead of a single large sum, the investor makes small and constant contributions at intervals. This also concentrates into a single large sum over time. This has two major benefits.
Rupee Cost Averaging.
The market does not stay the same. It goes up and down. If you invest a fixed amount every month, you spend less money on net asset value. Over time, this reduces your risk and the average cost of your purchase.
The Power of Compounding.
The ‘Step-Up SIP’ Advantage.
A standard SIP is where you invest the same amount of money every month. A Step-up SIP is where you increase the amount you invest every month by a fixed percentage every year. This is a highly effective strategy because you are able to increase your investments to the same level as your income level, so like a salary increase every year. This SIP helps you achieve your financial goals a lot faster. It also greatly increases the amplification of compounding.
With our Step Annual feature in the calculator, you can visualize the difference that this small incremental increase every year can make in your wealth.
Frequently Asked Questions (FAQ’s)
Is this SIP calculator accurate?
It employs correct mathematical principles, but the results you see are dependent on the Expected Return Rate that you have input. Mutual funds fluctuate in return, and it is important to know that anything you see in real life is not guaranteed. This is a tool to help you plan and estimate, rather than a pointer to what you will gain in the future.
What is a reasonable return rate to input?
Over the extensive period of time that you are investing in equity mutual funds, a rate of 10-12 percent is a reasonable return rate to consider. More aggressive funds have a greater margin for error, and debt funds will have decreased expected returns.
Is this tool not paid for?
No, this SIP tool online does not require payment and is free of charge.
Is it possible to use this for a one-time investment?
While this tool is designed for SIPs, you can create a hypothetical lump-sum investment by entering 0 for Monthly Investment and Annual Step-up, then you place your lump-sum value in the Initial Principal of a compound interest calculator.
Conclusion
A SIP is an extremely disciplined and effective approach for wealth creation over the long haul. Integrating discipline SIP and goal settings is the best way to approach the financial targets individually and help you achieve them. Our SIP Calculator enables you to see the difference your investment makes. With the smart investment, you can see how the strategies you deploy, like the annual step-up. SIP calculator changes outcomes. Use it continuously to approach a goal. You can easily achieve financial freedom.
