SIP Calculator - Calculate The Mutual Fund Investment Amount For Your SIP Plan
Investing is an essential step to put your money to work and potentially build wealth. It doesn’t matter what profession you are in; how old you are or how much money you earn. Planning your finances and investing at regular intervals helps build a healthy wealth portfolio. A systematic investment plan or SIP is an investment vehicle offered by many mutual funds to investors, allowing them to invest small amounts periodically instead of lump sums. A SIP enables you to leave aside the fears of investing too much money at once. It lets you begin with more modest investment amounts - at regular intervals.
Helping you with your SIPs is the SIP calculator provided here. This SIP calculator is an investment calculator that shows the amount of money you need to invest based on the goal amount you wish to achieve within a particular time frame.
SIP stands for Systematic Investment Plan wherein you can regularly invest a fixed amount at periodical intervals and aim for better benefits over a period of time through the power of compounding.
How a mutual fund SIP Calculator helps you -
An SIP calculator helps you:
- Determine the amount of money you need to invest per month
- Get an idea of the time period required to achieve your financial goal.
The entire process is pretty straightforward. All you need to do is select the goal amount that you wish to achieve, select the assumed annual rate of returns and the SIP calculator will tell you the monthly SIP amount that you need to invest for different years (5 Yrs, 10 Yrs, etc.). The results will be provided to you at just the click of a button.
Advantages of using this mutual fund SIP Calculator
By using a SIP calculator:
- You get to know the amount of SIP you need to invest per month to meet your financial goals, which may help you to make the right investment decisions. All this - without having to make complex calculations.
- You can use it online at no extra cost.
- You can efficiently and strategically plan your investments.
Outline your investments via the SIP route to meet your various financial goals using a SIP calculator.
Frequently Asked Questions:
1. How to Use a SIP Calculator?
Just select the goal amount you wish to achieve, select the assumed annual rate of returns and the SIP calculator will tell you the monthly SIP amount that you need to invest for different years (5 Yrs, 10 Yrs, etc.); based on the principle of compounding. This lets you make informed investment decisions for the future.
2. Why Should I Invest through a SIP?
Apart from a disciplined and convenient savings approach, some of the benefits of investing through a SIP include-
Benefiting from Risk - Stock markets carry the risk of volatility. Rupee-cost averaging helps reduce risk by allowing you to buy more units when markets are low and buy fewer units when markets are climbing. So, you actually benefit from market volatility.
Increased Savings The amount of money you invest gets compounded over a period of time & might help you accumulate a large corpus over a long time.
Flexibility - You can decide how much to invest. You can start with as small as Rs 100/-.
3. My Objective is Long-Term Growth, Will SIP Work for Me?
With regular investing and the principle of the power of compounding, you might able to accumulate a large corpus over the long term.
4. How Much Money Do I Need to Start a SIP Investment?
You can start a SIP with as low as Rs.100 or Rs.500 (depending on the limit set by a mutual fund house) and increase your contributions over time.
However, various fund houses might have various minimum investment amounts, and one should check before investing.
5. What Are the other Advantages of Investing through a SIP?
There are a lot of benefits of investing via a SIP:
I. Convenience - You can authorize an ECS mandate from your bank account to debit the amount towards the payment of SIP investment.
II. No need to time the market - Since the investment is made over a period of time, a SIP helps you avoid the need to time the market.
III. Minimum Investments – Depending upon the fund house, you can start with amounts as low as Rs.100 and gradually increase according to your needs. However, various fund houses might have various minimum investment amounts; one needs to, therefore, check before investing.
Reduces Risk: It helps reduce the risk with the concept of Rupee cost averaging. This concept ensures that you buy more units when the market is down - and fewer units when the market is up; this helps average the cost per unit.
6. What is Rupee-Cost Averaging in a SIP?
It is an approach in which investors put in a fixed amount of money into an investment at regular intervals, irrespective of the market conditions. As a result, more units are bought when markets are trading lower, and fewer units are bought when markets are trading higher. It is a proven way to reduce volatility risk.
Disclaimer: The above results are based on an assumed rate of return. Please get in touch with your professional advisor for a detailed suggestion. The results are based on an assumed rate of return. The calculations are not based on any judgments of the future return of the debt and equity markets / sectors or of any individual security and should not be construed as promise on minimum returns and/or safeguard of capital. While utmost care has been exercised while preparing the calculator, NIMF does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator. The examples do not purport to represent the performance of any security or investments. In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax/ financial advisor before taking any investment decision.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.