SIP Stands for Systematic Investment Plan which is a type of investment scheme you will be offered by various Mutual Fund companies today. With the help of Systematic Investment Plan, one can strategize it to invest a very significant but yet small amount of money to invest periodically into a particular and reliable mutual fund. SIP allows you to invest your money in a very small amount so there are lesser chances of risk you get around which is a great benefit with Mutual funds. Investing small amounts of your money into a mutual fund in the periodical pattern is about investing it into the different durations of a week, month or quarter year.
If you are a retail investor, SIP (Systematic Investment Plan) is something which offers you an organized, formulated and disciplined but passive approach towards the investment option. This will help you to create income for the long-term scenario. Also to mention, the money you have invested is in regular intervals, usually on monthly basis. Apparently, all this reduces the effect of market volatility.
The SIP calculator will help you to calculate the gain in the wealth and expected returns for the SIP Investment on monthly basis. With this calculator, you will get a convincing estimate on the maturity amount for any SIP monthly investment value, based upon the monthly annual rate. SIP Calculator is very much easy to use where it can show how you small investments made in regular intervals can assimilate for greater returns over a certain long period of time. What you need to do is select the monthly investment amount you are supposed to pay or expected to pay, the tenure years, the rate of the return value at the time of maturity. Then, there is an advanced SIP Calculator as well which actually the advanced version is of SIP Calculator.
SIP Advanced Calculator is something which will calculate the returns for the post-inflation. With the help of the advanced calculator, you will be able to get a better picture of the future returns on the SIP Calculator in the case of inflation. There is a significant effect of the inflation on your maturity returns which can be measured by this calculator.
Why to Use SIP Calculator?
It is very important to make regular and systematic investments over a long period of the time until the maturity return hits to avail high returns on the investments. With the help of SIP Investment Calculator, you can achieve that, maintaining the correct equation with exact expectations. Using the SIP Investment Calculator, any potential investor can easily calculate the approx maturity return amount for a particular principal amount where investments should have been made in regular intervals in a fixed tenure. Any investor who is looking forward to investing in the proposal where after certain years he can be secured with a good amount of money can calculate the amount of investment he would have supposed to do by this calculator.
Know how does a Sip Calculator Works?
SIP Calculator requires some data from your investment pattern for the particular financial tenure. This data from your investment plan or pattern will actually calculate or computed to the approx value of the investment made. There are some steps which you need to follow in order to find out the estimated return value.
Step 1: You have to enter the SIP investment amount which is supposed to be monthly paid or the investor wants to invest on monthly basis. There is always a minimum investment amount in all kind of investment plans whereas, with SIP, the minimum investment amount is Rs. 500 per month.
Step 2: Next step is about finding out the evaluation of the possible return you can get with the amount you are investing in the regular amount of time. It will detect your past records and evaluation will be completed on the basis of that.
Step 3: In Case of SIP maturity calculator, you are supposed to feed the duration of the investment tenure. It is essential to decide that duration of the investment. Minimum duration is 6 months but you are supposed to maximize that duration to get better returns.
You can change the variables for a different result and explore the better possibilities and to know how much and for how long you are supposed to invest to get the return you exactly anticipating for.
Benefits of Mutual Fund SIP Return Calculator?
The Mutual Fund SIP Return Calculator helps you calculate the estimated amount of return on mutual funds for the money you invested on. The most important aspect in the case of Mutual Return is the kind of return you will be having at the maturity period. These returns can vary dramatically over a long period of time during the financial tenure of Mutual fund. Therefore, it will be quite difficult to find out what corpus is ultimately different than at the expected rate of return. The Systematic Investment Plan Mutual Fund Calculator handles these special needs, so now when you think about your financial planning; this Mutual Fund SIP Returns Calculator will actually reveal how much your net worth will decrease. The type of investment will also affect the calculation here.
Is SIP Safer than Lumpsum Investments?
Investors have two ways to invest their money in a mutual fund as SIP or Lumpsum. First, you need to know what is a Lumpsum investment to compare these two kinds of investment. As the name suggests, Lumpsum investment is a one-time investment or a Lumpsum investment made for one year or a long time. It is like putting a large amount of money at once for a particular duration of tenure whereas with SIP you can invest the same amount of money in regular intervals and in small installments for the same duration again. Systematic Investment Plan (SIP) is safer than Lumpsum investment as it doesn’t give you the risk of losing a large amount of money due to lack of market observation or research. Only a few parts of your large investment will face the volatility of the market. SIP also allows you to invest in the market at a different time and various situations so you can read the nature of the market along the year. Also, it gives you rupee cost averaging where you reduce the per-unit cost of your buying units. Apart from that, SIP investment is something which builds an investment habit to you and gives you better insight as well as an experience of the market and make you a better investor for the future.
What is the Best Fund Schemes to Invest in SIP?
The awareness for the benefits of SIP plans is promoting people to explore for best fund schemes to invest in SIP. One must do proper research and go by the numbers about which fund scheme is worth for investment. There are various categories for fund schemes and the position of various fund schemes changes along the time as well. The equity schemes have magnetized the larger number of investors over the long period. Make sure you get these equity schemes according to the SEBI guidelines. You research you should be extensive and apt, better mark and compare different reliable resources including government and other organization dedicated to such evaluations. The top SIP performers are currently ICICI Pru Bluechip Fund, SBI Bluechip Fund-Reg, Aditya Birla SL Frontline Equity Fund, and Reliance Large Cap Fund as well with their large-cap schemes of 5 years and 10 years plan. Then, there are Large and Midcap schemes, Tax saving schemes and Value Schemes with similar year plans.
It is important to understand the SIP (Systematic Investment Plan) in mutual funds allows you to invest a small amount of money every month or in regular intervals for tenure until the maturity returns. SIP is better and safer than Lumpsum investment plan where it doesn’t demand you to invest a large amount of money at once for particular tenure as it is riskier. SIP is better due to the least risk, better market apprehension and not need to research too much on market before investing as well.
SIP Calculators are supposed to find out the possible or expected amount of maturity returns, you will get on a certain amount of investment throughout the financial tenure. It also gives you the anticipation where you can see how much money you need to invest monthly to get that certain returns you actually want after a particular duration. This helps you do decide the amount of monthly investment as well as the duration to choose. SIP Calculators just require the supposed monthly investment you want to make and the tenure duration to find out the other figures. It is best to invest in the fund schemes for the SIP plans but it is essential to research enough from the valuable resources. There are different categories to choose upon according to your preference. It could be dependent on whether you are looking for large-cap, mid-cap, value-based or tax-saving purposes. You must be consistent on the regular investments made every month to assure the better returns at the end of the tenure.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.