SIP Calculator






One of the biggest benefits of mutual funds investment is that it allows investor to invest small amounts and reap the benefits of higher returns from equity, debt or other investment avenues like gold. The Systematic Investment Plan (SIP) has been an innovation of the industry that has benefited investors a great deal. It enables them to reap the benefits of small amounts invested systematically each month and maximise returns.

Since investments are made every month and spread over years, finding out returns from SIP can be difficult for many investors since many calculations are involved. To make things easier, we have come up with an SIP calculator that helps you calculate returns from your investments and gauge how they are doing. The mutual fund SIP return calculator will enable you to find out how much you have made over the years, and whether the returns are enough to fulfil your goals – like ensuring enough funds for retirement, money to buy a house, or to finance your children’s higher education.

You can also use the mutual fund SIP return calculator to compare your fund with others, and help you decide whether you want to stick to it or choose another one.

How does SIP calculator work?

Here’s how you go about using the mutual fund SIP calculator.

  1. The first thing to do is enter the investment amount per month or quarter as the case may be into the SIP return calculator.

  2. Step number two is entering the investment horizon – how many years you want to invest in the SIP.

  3. The third step is entering the expected rate of return into the mutual fund SIP calculator. Now this might require a bit of research. You can use Angel BEE’s listing of best mutual funds to find out what kind of returns you can expect from your mutual fund. This will also help you decide whether your fund is performing better or worse than others in the same category

  4. Inflation adjusted returns – you can use the SIP return calculator how much you have actually made after adjusting for inflation

Benefits of SIPs

There are obvious benefits of investing in SIP, and the proof of this fact is in the growing number of investors opting for this scheme. According to data by the Association of Mutual Funds of India (AMFI), the mutual fund industry had added almost a million SIP accounts each month on an average during the financial year 2018-19, with an average SIP size of around Rs 3,150 each month.

A mutual fund SIP calculator will find out how much you have actually made and is thus very helpful

  1. Rupee cost averaging:

    One of biggest advantages of investing through a SIP is that you enjoy the benefit of rupee cost averaging. What this means is that when you invest regular amounts each month, you even out the cost of acquiring mutual fund units. When the market is bullish and stock prices are high, you get fewer mutual units. When the bears have the markets in their grip and prices are low, you get more mutual fund units. So you don’t have to worry about getting the timing right when you invest in shares, and risk purchasing them when they are overpriced. If you use your SIP return calculator, you’ll probably find that an SIP would have done better than a lump sum investment. Of course, it’s all a matter of timing, but what is undeniable is that the risks are far lower.

  2. Investing small amounts:

    Another big advantage of SIPs is that you invest small amounts each month, depending on how much you can set aside. You can start an SIP for as little as Rs 500 per month. Instead of waiting to accumulate money to make a lump sum investment, you can put whatever little you can spare into an SIP. So instead of your money lying idle in your savings bank account and earning very little interest, it’s already increasing your net worth in a mutual fund. If you use a SIP return calculator, you’ll find how much you have gained.

  3. Convenience:

    Another plus point of the SIP is its amazing convenience. The mutual fund SIP calculator may show how much returns you can make, but it does not show how convenient it is. Once you’ve decided on starting an SIP, you can authorize a debit mandate for SIP with your bank. The bank will then automatically debit the monthly or quarterly SIP from your bank account and credit it to the asset management company. No need to remember to write cheques and send it to the company!

  4. Flexible:

    You can change the SIP amount any time; there is no penalty for stopping an existing SIP and starting a new one. After cancelling, you can either increase the SIP amount or decrease it according to your convenience.

Benefits of SIP return calculator

So what are the benefits of a mutual fund SIP calculator? Here are some of them:

  • • Convenient:Unless you’re an accountant or a math whiz, using pen, paper and calculator to find out how much you’ve made in the past few years can be quite daunting. You don’t have to do that when there’s a SIP return calculator just a mouse click away, at any time of the day or night.

  • • Gauging performance:A mutual fund SIP calculator is invaluable in gauging performance of your fund. You can find out how much it has made in the past year, three, five or ten years and compare it with others in the same category. If it has underperformed, you can always opt for another scheme.

  • • Investment planning:A SIP return calculator is an invaluable tool for investment planning. You can use it to find out the optimum amounts you need to invest to maximise gains. You can use different amounts, time periods and expected returns to find the SIP that helps best in achieving your investment goals.

  • • It’s free:Well, if you want to maximise returns, you have to pinch those paisas too. What better way to do that than to use a free SIP calculator, instead of relying on expensive investment advisors!

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