SIP Calculator – Systematic Investment Plan Calculator
Potential investors may think that SIPs and mutual funds are the same. However, SIPs are only a method of investing in mutual funds, the other method is a lump sum. The SIP calculator is a tool that helps you determine the returns you can avail of by parking your funds in such investment vehicles. A Systematic Investment Plan or SIP is the process of investing a fixed amount of money in mutual funds at regular intervals. SIPs usually allow you to invest weekly, quarterly or monthly.
What is a SIP Calculator?
SIP calculator is a simple tool that allows people to understand the return on investment in Mutual Funds made through SIP. SIP investments in mutual funds have recently become one of the most popular investment options for millennials.
These mutual fund SIP calculators are designed to provide potential investors with an estimate of mutual fund investments. However, the actual returns offered by mutual fund schemes depend on several factors. The SIP calculator does not show output loads and cost ratios (if any).
This calculator calculates the expected wealth growth and return on your monthly SIP investment. In fact, you can get a rough estimate of your monthly SIP maturity amount based on your expected annual rate of return.
How can a SIP return calculator help you?
According to several investment trust experts, SIP is a more beneficial method of investing funds as compared to lump sum payments. This will help you stay financially disciplined and create saving habits that will help you in the future.
The online SIP calculator is a useful tool that shows you the estimated returns you will get after the investment period.
Advantages of SIP calculator are:
- This will help you decide how much to invest.
- It tells you the total invested amount.
- It shows an estimate of your income.