What is SIP and moreover what is SIP Calculator?
Before we jump into the details let us explain to our beginner readers what SIP stands for Systematic Investment Plan—now coming to our next term in the heading SIP Calculator. This is an online tool for mutual fund companies and financial websites. With the help of this, you as a potential investor will have to fill in the details like the sum you intend to invest each month, your estimated rate of return, and the time duration of the investment.
After this SIP Calculator comes in handy, these parameters are then used by the calculator to determine what kind of returns are actually possible over the chosen duration for the investment. By practicing this method you will come to terms with planning your investments accordingly. But throughout the journey, you must keep in mind that the returns vary due to market conditions and other related factors.
Calculate SIP Returns
Let us learn how to use the SIP calculator for calculating SIP Returns. This article’s purpose is to guide you in a step-by-step manner for you to be efficient with the practice.
- The foremost step for you is to choose and visit the mutual fund and financial websites which have the feasibility of SIP calculators.
- Fill in your details for the monthly investment amount that you desire to make.
- For the next step, Fill in your expected rate of return. Be mindful before filling in your not-so-possible expectations!
- Now you must fill in the tenure you wish to keep on investing for those number of months.
- Now the SIP Calculator does its job and presents the estimated returns on investment based on the credentials filled in by you.
For a better understanding let us try this concept with a realist example.
Let us assume you desire to invest Rs. 5,000 per month for a period of 10 years and that you anticipate a 12% annual return. A SIP calculator estimates that after 10 years, your investment would have generated returns of Rs. 12.27 lakhs.
Note: It’s crucial to remember that these projected returns might change and are subject to market risks and uncertainties. Hence, before making any investment decisions, it is always a good idea to speak with a financial counselor.
Why is there an ongoing trend to Invest in SIP?
As it has been noticed for a couple of years that an excellent place for you to start creating a long-term investment portfolio is by investing in a SIP (Systematic Investment Plan).
Let me help you to cross the stepping stones!
- Acknowledge your Goals
It is always good to dream big but at the same time, you must know the real achievements. So according to reach your estimated milestone, you must invest in the SIP in the required proportion. Go by the saying “As you sow, so shall you reap.”
- Reasearch & Analysis
Since it is all about your hard-earned money. You should study different mutual funds. It has been experienced that the people who have been on the lookout for mutual funds with a proven track record of producing profitable returns over an extended period of time are the ones that gave an ideal return on the investment made.
- Know your current pocket
You must not desire for some highest return goals in the beginning phase. Invest according to your current financial status. It is about investing regularly each month. So it is advisable that your start slow and then gradually extend.
- Lock your deal!
After you have decided on a mutual fund and the SIP amount, your next step would be to start up the SIP online. It can be done either on the website of the fund or the online banking platform of your bank. To establish the SIP, you must give personal and financial credentials.
- Keep an eye!
To make sure that your SIP investments are as you desired them to be with your financial objectives, periodically review them. Examine the performance of your mutual funds, and if there comes a time when it doesn’t show the result as you expected it alters your SIP amount and investing approach.
A Quick Tip:
It’s vital to bear in mind that investing in a SIP entails market risks and that the returns may change depending on the state of the market. Hence, before making any investment decisions, it’s crucial to get the advice of a financial expert. After all, it is all the matter is all about your hard-earned money and your future dreams are dependent on it.
ASNPL Shares are here to guide you to find the correct path!
Share in the comment section if your queries are related to SIP Calculator or on the methods to calculate SIP Returns or invest in SIP.
