Mutual Fund SIP Calculator Online
A systematic investment plan, also known as a SIP, is a simple way to invest in mutual funds. You must provide an auto-debit mandate with your bank account details at the time of SIP registration. Every month, the amount will be deducted from your bank account on a predetermined date. A systematic investment plan (SIP) calculator is an easy and simple tool that allows you to work out the yields on a SIP loan. You can use it to guess the approximate amount of money to pay each month. Using the mutual fund SIP calculator online is a fast and efficient way to reach your financial goals. By entering a few basic details, you can quickly arrive at the amount that is related to your investments.
What is a Mutual Fund SIP Calculator Online
Calculating the returns on mutual fund investments is simple and convenient with the mutual fund SIP calculator online. To determine the exact returns, you must enter several metrics including the investment amount, duration of the investment, frequency of investment and expected returns. The compound interest formula is used to design the mutual fund SIP calculator online. Compound interest has a significant impact on accumulating and compounding mutual fund returns. The mutual fund SIP calculator online compares mutual fund returns to those of fixed deposits.
Mutual Fund SIP Calculator Online Formula
The mutual fund SIP calculator online uses the formula that is described below to calculate expected returns on mutual fund investments:
FV = P [(1+i) n-1] * (1 + i ) /
In this case, FV stands for future value or the amount you will receive when the investment matures.
P = the principal amount invested via a SIP
I = the compound annual rate of return
R = the expected rate of return
N = the duration of investment in months
Using an example to illustrate this, assume you want to invest Rs. 2,000 a month for the next 24 months and you anticipate a 12% annual rate of return. The calculation will be as follows:
I = r / 100 / 12 or 0/01
FV = 2000 [ (1 + 0.01) ^ 24-1] (1+0.01) / 0.01
At maturity, you will receive Rs. 54,486 based on the calculations above.
Different Types of Systematic Investment Plans
There are different types of systematic investment plans including:
- Top-Up SIP: A top-up SIP allows you to change the amount of your SIP instalment by a fixed amount at regular intervals.
- Flexible SIP: SIP refers to investing a set amount in a specific mutual fund in a systematic manner over a set period. You might want to think about investing through a flexible SIP. With this type, you can adjust your monthly investments based on your cash flow.
- Perpetual SIP: Investors typically prefer to invest in a mutual fund for a set period of time, which can range from 6 months to 5 years depending on their specific financial objectives. You can select a perpetual SIP and can continue to invest in mutual funds via SIP for as long as you prefer.
How To Make a SIP Investment in a Mutual Fund
These are the instructions to follow if you want to make a SIP investment in a mutual fund:
- If you want to begin a SIP in any mutual fund scheme, you can do so in four simple steps online.
- Access the mobile app or website.
- Install and launch the mobile app or log into the website.
- Choose your preferred fund.
- Select the SIP fund you want to invest in by using the feature that allows you to search for different types of funds. You can search for it directly in the top search bar.
- Select the mode of investment and enter the investment details. Select SIP as the mode of investment and enter the instalment amount, date and duration of the SIP.
- You can now begin investing.
- Enter the details related to your bank account to set up standing instructions and automate payments.
- Following that, the amount of your SIP investment will be deducted automatically from your account on the date of investment.
Important Points to Keep in Mind
- If you cancel your mutual fund SIPs, the funds are no longer deducted from your account. However, if you cancel your SIP, you will not be penalised. Your initial investment will remain in the fund and will continue to generate returns. Also, you can withdraw your invested funds at any time, in part or in full.
- SIP is a method of investing in mutual funds, not an investment tool in and of itself. So you can start a SIP in any mutual fund scheme that you are willing to fund, and the returns will be determined by the performance of that mutual fund scheme.
- SIPs encourage regular savings and aid in the development of financial discipline.
- Long-term SIPs can protect you from day-to-day market fluctuations and you do not have to worry about market timing.
Conclusion
A mutual fund SIP calculator online is a system that helps you in guessing the systematic investment plan or SIP amount. It will also tell you the amount that you are required to pay every month to attain your financial goals. In other words, a mutual fund SIP calculator online is a pathway to reach your financial objectives. The mutual fund SIP calculator online can be an extremely useful online tool to automatically perform complex financial calculations. To use the mutual fund SIP calculator online, you will be required to enter the requested data and the tool will return the result in a matter of seconds. To read more articles about a mutual fund SIP calculator online and receive more information and guidance on investments, visit Piramal Finance!