Calculate returns on SIP
Discover Your Potential Earnings with Monthly SIP Investments.
Invested Amount:
Estimated Return:
Total Amount:
SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. In timing the market, one runs the risk of investing a large sum at a market peak. SIPs help one reduce the average cost of units purchased and maximise returns.
How a SIP Works
A SIP involves investing a fixed sum of money in mutual funds at regular intervals, which can be weekly, quarterly, or monthly. It's a disciplined way of saving and investing.
What is a SIP Calculator?
A SIP Calculator is a handy tool to estimate the returns on your mutual fund investments made through SIP. Although it provides a rough estimate of your returns, please note that the actual returns may vary due to factors like exit loads and expense ratios.
Using the Calculator
The SIP calculator works with the following formula:
Where:
- (M): Maturity amount
- (P): Amount invested at regular intervals
- (n): Number of payments made
- (i): Periodic rate of interest
For example, if you invest Rs. 1,000 per month for 12 months at a 12% annual interest rate, you can expect to have approximately Rs. 12,809 at the end of the year. Keep in mind that the interest rate may vary based on market conditions.
Advantages of Using this Calculator
This SIP calculator offers several advantages:
- Helps you plan your investments based on the amount and tenure.
- Provides an estimate of the total value of investments at the end of your SIP tenure.
- Saves time compared to manual calculations.