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SIP Investment Plan Calculator: Mutual Fund Return Calculator
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Investing money into mutual funds via a Systematic Investment Plan is one of the leading options for creating wealth in the long term. However, how do you figure out how much to invest and what will be the returns on it? This is where a SIP Investment Plan Calculator or a Mutual Fund Return Calculator serves the purpose.
A SIP calculator is a type of financial calculator that allows users to estimate their mutual fund returns easily and accurately. All that is required is entering the monthly SIP contribution, the duration of investment, and the anticipated annual return. Within seconds, the user’s investment’s potential future value is displayed.
In India, SEBI regulates and supervises the mutual fund Industry.
How Does a SIP Plan Calculator Help?
SIP Return Calculator helps investors in the following ways-
Accurate Estimates: Find out your expected returns in a matter of seconds.
Setting goals: Make plans for your future, whether it is for retirement, home ownership, or a child's education.
Making Informed Decisions: To make wise decisions, compare several mutual fund SIPs.
Key Benefits of Using a SIP Calculator
- Goal-Oriented Financial Planning - Accurate calculations enable you to align your finances with various milestones, be it a retirement plan, a child’s education, or buying a new house.
- Enhanced Budgeting - Plan how much is to be invested every month without overstretching your finances.
- Motivated Discipline - Visualization of returns encourages commitment to investing in order to help achieve discipline.
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Cost Efficient, User Friendly - The best SIP calculators are available online with no sign-up or payment needed.
Example Calculation
If you invest Rs.5,000 each month for 10 years with an estimated annual return of 12%, your total investment will have increased to almost Rs.11.6 lac. Play around with the figures using a mutual fund calculator monthly!
Now if you want to calculate the future returns as per your amount of investment, time duration its so easy. Simply visit the SIP Calculator page and check your future mutual fund returns before investing.
Explore Other Financial Calculators
Conclusion
One wise move toward financial independence is to use a SIP Investment Plan Calculator. Anybody wishing to invest in mutual funds will find it to be very helpful, quick, and simple. Let your money work for you by beginning your SIP journey right now!
Disclaimer: No buy or sell recommendation is given. No investment or trading advice it is. Mutual fund investments are risky. Always discuss with an eligible financial advisor before investing.
Frequently Asked Questions
The absolute returns of mutual funds can be calculated with the formula = (current NAV-beginning NAV) / beginning NAV × 100
The lumpsum formula to calculate mutual fund returns is A = P (1 + r/n) ^ nt
Where,
A- Estimated return
P- Present value
r- Rate of return
t- Duration of investment
n- Number of compounded interests in a year
The formula to calculate returns of SIP is A = P * ((1 + r)^n - 1) / r * (1 + r).
A- Estimated return
P- Present value
r- Rate of return
n- Number of compounded interests in a year
As per returns in 5 years (Min 40%) below are some good lumpsum options-
Quant Small Cap Fund.
Bandhan Small Cap Fund.
Nippon India Small Cap Fund.
SBI Contra Fund.
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