You should be aware of the advantages of mutual fund investment through a Systematic Investment Plan (SIP), which is straightforward, adaptable, and profitable because it enables you to make a set monthly contribution to a pool of funds. This is true if you’re looking to invest in mutual funds online. Online mutual fund investments require a minimum monthly contribution of Rs 500, and various investment intervals are available, including daily, weekly, fortnightly, quarterly, half-yearly, and annual.
What is a mutual fund SIP calculator?
The SIP Calculator web tool calculates the possible return on a SIP investment. The calculator computes results using the user’s inputs. The investment amount or goal amount, the projected rate of return, the duration of the investment, and the step-up rate are a few examples of basic inputs that are required.
The calculator uses the investment amount strategy and goal amount method. The most common technique asks the investor to enter the investment amount, anticipated return, time frame, and step-up amount. Using the target amount technique, the required current investment is determined based on the target amount the investor intends to reach in the given time frame.
The SIP calculator for mutual funds bases its preliminary estimate on an assumed yearly rate of return.
However, the Lump-Sum SIP Calculator will help you determine the expected maturity amount based on a single lump-sum payment if you intend to invest a lump sum in mutual funds through a one-time payment.
Benefits of the SIP calculator
- The SIP calculator aids investors efficiently and strategically in planning their investments.
- SIP calculator simplifies complicated calculations and offers a precise estimate of the return on investment that a shareholder might anticipate. Hence assisting the investor in making the best investment choice.
- It is simple to use a SIP calculator because all that is needed from the investor is to enter his desired investment amount and tenure.
- You can use the SIP calculator for free without submitting personal information.
- The investor can quickly and easily plan his investment portfolio using a SIP calculator. He doesn’t have to consider much because the estimated quantity is shown quickly, assisting someone in making a sensible investment.
- An individual unfamiliar with the world of investing can use a SIP calculator to determine the fund’s return rate without needing an advisor because the calculator handles everything for him.
Why should we use the SIP Calculator?
When discussing Mutual Fund SIP calculator, it is essential to understand the advantages of investing in SIPs instead of lump sums. Rupee cost averaging, which enables investors like you to acquire more fund units whenever the unit price is less and fewer units when the unit is high, is a benefit of investing in SIP mutual funds.
The following advantages become available to you as a result of using an online SIP calculator to determine the expected maturity value of your SIP investment:
- The SIP calculator gives a rough maturity value estimate.
- You can choose the investment amount following your financial objectives.
- The calculator displays the overall sum invested throughout the specified time.
- You can choose the proper mutual fund strategy to achieve your long-term financial objectives based on the maturity value.
Mutual fund investments have increased dramatically during the past few years. However, it is suggested that you utilise a mutual fund’s returns calculator to plan your investments. This can help you determine how much money you need to invest to reach your financial objectives.
Based on your commitment amount, investment time, and estimated rate of return, a SIP investment calculator could calculate the money you will amass for your financial goal.