A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. A structured investment plan, or SIP, allows you to make small mutual funds monthly investments, an opportunity to multiply your money efficiently. The profits on your SIP deposit can be determined using a web-based service called a SIP calculator. Explore the Best SIP calculators to assess your investment; then your amount may increase, assuming you begin investing right away.
SIP Calculator: What is it?
A Systematic Investment Plan (SIP) calculator calculates the yield on your SIP asset based on an expected return rate and the asset’s predicted valuation after a specified period.
Because SIPs often demand a monthly amount, the manual calculation might be time-consuming. The waiting duration for each monthly contribution would fluctuate at different times, resulting in a wide range of returns based on each of these payments.
Working on SIP Calculator
Even though you can always locate a SIP calculator in India online, you don’t need to perform the calculations by hand. However, it’s still a good idea to understand how these figures are calculated so you can feel more secure about your investing strategy.
SIP calculators use the mentioned SIP formula:
P x [(1 + r) n – 1] r (1 + r) equals FV.
Therefore:
FV- Investment future value
P-Monthly principal payments
r-the estimated rate of return (per month)
n-Amount of principal payments given
For instance, the calculation might seem as follows for you if you were to get the FV for a SIP with $1,000 monthly payments for two years and a 12% projected rate of return:
FV = 1000 x {[(1 + 0.01)24 – 1] ÷ 0.01} x (1 + 0.01)
Since our predicted rate of return is 12% annually or 1% monthly, the r is 0.01; take note of this.
What features should a decent SIP calculator have?
- A good SIP calculator must consider all relevant aspects, such as present value, time value, IRR (internal rate of return), and inflation improvement, to determine the life worth of your investment.
- It must also be user-friendly, keeping in mind that the user is a layperson unfamiliar with the financial terminology listed above. It should only request the most basic information from the user to provide the best and most accurate results.
- To begin SIP, you must first define and set your financial goals. These objectives should be attainable and reasonable. As a result, the SIP calculator must enquire about your goal and the time required to attain it.
- The estimator must know the distinction between SIP and FD returns across various periods.
SIP Calculator Advantages:
- It simplifies the complex computation of investment.
- Estimates the return on investment accurately.
- The user only needs to enter the essential information.
- Provides immediate results
- It is free of charge.
- The user can experiment with and compare various scenarios.
- Some calculators will also make investment recommendations based on your input.
- The user can examine several investment possibilities and select the best one for his needs.
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Best 9 SIP Calculators:
1. An ICICI SIP Calculator
Calculating mutual fund SIP returns is made easier with the ICICI SIP calculator. One can calculate the possible SIP returns by inputting data parameters like capital investment, investment period, equity investment identity, etc. The calculator calculates the expected profits based on the data entered. It estimates how much money was earned through SIP investment. This is India’s best SIP Calculator.
2. SIP Calculator by Scrip box
Scrip box’s SIP calculator provides results in graphical and chart formats. The amount invested, prospective capital gains, and maturity date are all explicitly displayed. The calculator employs the investment amount and target amount approaches. The SIP calculator on Scrip Box calculates the return as a percentage of the maturity amount based on three different development sequences. They are, respectively, above, average, and below average.
3. Mutual fund sahihai.com Sip Calculator
This calculator, like all others, performs the simple task of determining the future worth of your investment. For computation, it considers the predicted rate of return and investment term. This is the most basic and effective calculator for determining the future worth of your investment at any given period.
A layperson can also use this calculator to calculate investment amounts. The disadvantage is that it does not compare mutual fund investments to fixed deposits or other investment options. It only gives you the computations for the different periods but does not make any SIP recommendations based on the query input.
4. PolicyBazar.com SIP Calculator
Another equity investment integrator that enables consumers to purchase equity funds out of all AMCs is PolicyBazar.com. Their calculator service calculates the capital investment based on a few vital but straightforward details.
The calculator is simple and does not account for all the essential aspects of financial planning. It is undeniably user-friendly but excludes crucial factors such as inflation from its calculation. It will not advise you about the particular amount you should invest to achieve your investment targets. It also compares to other investment options such as bank deposits, periodic deposits, etc.
5. Groww’s SIP amount calculator
Groww’s SIP amount calculator is simple to use. Enter the monthly investment amount (the amount used to initiate the SIP), the duration of time users would like to keep the investment and the expected returns rate. The calculator automatically displays users an approximation of the amount they could expect to receive once their maturity period is over, as when you put down the value.
6. HDFC Sip Calculator
The HDFC Equity Fund SIP estimator is a free web-based tool that calculates the asset’s value, including any HDFC mutual fund plan investment. The equity investment structure, periodic monthly amount, and investment portfolio are just a few simple pieces of information that may be inserted into the HDFC SIP Calculator. A calculator is an essential tool that allows you to see how your future investment amount changes when you change the scheme, time, and quantity of your Systematic Investment Plan.
7. SBI Sip Calculator
Then, using the policy’s historical returns, the SIP cost, and the investing period, the maturation benefit of the assets is determined. The programme also provides insights into how the fund ranks within its category, allowing you to make better investment selections. The service also offers additional details, including the stock’s tenure, assets managed (AUM), exit load, and payout ratio for the plan. It enables any investor with internet access to examine the scheme’s estimated profits before making investment decisions. The programme also eliminates the requirement for laborious computations to evaluate the maturity value.
8. AXIS Sip Calculator
The Axis SIP calculator makes it simple to determine the yield to maturity of any SIP capital invested in almost any Axis equity fund scheme. This SIP calculator is a simple tool that requires only the most basic information from you, including the programme, including being deposited in, the investing duration, and the SIP amount. The Axis SIP calculator calculates the returns of any Axis mutual funds over a period. The programme determines the final asset value according to your SIP and financial goals.
9. UPSTOX Sip Calculator
One can calculate your expected returns for a particular SIP investment at a specific rate of interest using the Upstox SIP calculation. This estimator can also assist you with figuring out the exact amount you should put aside each month to reach a particular objective throughout a specified amount of time. It is meant to assist customers in choosing the appropriate level of future investment.
Conclusion
The precision of the SIP calculator is critical in financial planning. All of the calculators available online provide you with an outcome based on your assumptions. As a result, you must enter the data points extremely carefully and honestly. Otherwise, it will display an incorrect or rosy image, which is useless.
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