Systematic Investment Plan (SIP) in a Mutual Funds is one of the most disciplined approaches to avail the best Mutual Funds Benefits. It is the answer to preventing the pitfalls of some of the best Equity Mutual Funds and still enjoying the high returns. Using SIP, you can invest a small amount periodically, into a selected mutual fund. With the help of a SIP Calculator, you get to know the amount you need to set aside at regular intervals (weekly, monthly, and quarterly) that would achieve your goal of generating a particular fund in the longer run.
You get to forecast the results by just entering a few details such as:
- Amount of best SIP installment
- Number of SIP payments (at regular intervals)
- Number of Instalments made till date
- Annual expected rate of return
In SIP Plan, the amount is invested at regular intervals that also reduce the impact of market volatility, on your investment. It inculcates the habit of savings.
About SIP Investment
SIP is a convenient, systematic, and regular method of investing in mutual funds. It enforces a disciplined approach to investing and infuses regular saving habits. It allows an investor to invest a fixed amount regularly in the chosen mutual fund plan. And not requiring to worry about the market conditions before investing.
SIPs entail regularly investing over a long interval of time, which minimizes the risk factor involved due to turbulences in the market and increases the chances of you fulfilling your financial goals. No massive amount in a lump sum is needed. And you can start from as low as Rs. 100. One can get into the habit of saving and investment, from an early age.
A fixed amount is set aside to be saved each month. SIPs are therefore one of the most important tools of smart investing, helping you prepare for your financial goals in a hassle-free manner. The investments are spread out over time, unlike a lump sum investment which takes place all at once.
But to know how much will be the value of your investment at the end of your SIP period, WealthBucket SIP calculator is best with its user-friendly features and easy access.
Benefits of using SIP Calculator
The SIP is one great way to optimize your Mutual Funds Investment. It offers benefits, over the long term, starting with a small amount. But before you invest your money, it is important that you understand which SIP will help you fulfill your goal. To help you make the most of your investment, the SIP Calculator is the online tool to consider.
Accurate Results: You can get accurate results, with the help of the SIP Investment Calculator. It is the first basic to taking calculated risks. You need to enter details such as the Amount you will set aside monthly, Duration and the expected Return. Whether your needs would be fulfilled by investing in Liquid Funds, Debt Funds or Equity ones? With such information, you’ll get to know the total invested amount, total maturity amount and the amount that you’ll earn on your Mutual Funds. This system removes the need to manually calculate your returns, where a mistake may occur.
Faster Results: The SIP calculator gives you much faster results than manually calculating the same. And, you get information regarding your total invested amount, your total maturity amount and your total SIP income in one calculation itself. This way you won’t have to perform multiple calculations to get these different amounts. The added bonus is that you can access it online at any time, without needing to do the math or searching for a physical calculator.
Helps you choose better: One of the key benefits of using a SIP calculator is the fact that you can forecast your investment options and look at different outcomes. You can choose to change the duration or the amount you can set aside to check how your SIP may be affected. This, in turn, helps you choose the best tenure and amount in order to harvest the most profitable returns.
You can make the investment to fulfill your long-term goals. For example, you estimate that you will need a monthly pension of Rs. 25,000 post your retirement. Now, with the help of the SIP Calculator, you can forecast the amount you would need to invest to reach that required funds.
You make an informed selection: By being able to feed-in the interest rate on the SIP calculator, you can preview the potential returns on different SIPs that have the same time duration and same investment amount. After comparing the results of these SIP options, you can easily understand how to invest in SIP. Because of this, you can choose the top SIP that will get your Mutual Funds to perform well and reap high profits.
Easy Availability: SIP Calculators are easily available online. And at most sites, they are free to use, as well.
How does the SIP Calculator work?
The SIP Calculator uses the data you feed-in, for computation of the absolute value of your investment. Given below are some of the important steps that you must follow while using it.
Step 1: First, you need to enter the amount that you will be able to set aside periodically. For investing in Best Mutual Funds, you can begin with an amount as trivial as Rs. 500. Whereas, for all other investment schemes available, the minimum is Rs. 1,000, generally.
Step 2: Thereafter, you need to evaluate the possible rate of return that you may get on your investment. The evaluation involves considering the track record of all the funds you are regarding.
Step 3: After this, you include the time duration of the investment. This is helpful if you are planning to invest for a definite period of time, whether short term mutual funds or long term ones. To give an example, you may want to invest to pay for the school admissions, as soon as your child is born. In such a case, the time period for the investment is already decided.
Step 4: If you have an ongoing SIP then you need to enter the number of installments you have already made.
What is a Lump sum Calculator?
The functioning of the Lump Sum Calculator is quite similar to that of the SIP calculator. It helps you determine the maturity amount of a One-time Lump Sum investment and the Present Value Lump Sum Investment, at the end of a definite number of years. You need to enter the amount to be invested, the investment duration, as in the number of years and the expected rate of return. Subsequently, you get to know the maturity amount and your total earnings on the Mutual Funds.
Just like SIP Investment Calculator, the SIP Planner helps you figure out the amount you need to invest regularly to meet your Financial goal. It is a tool that helps investors plan their investments easily and quickly. Thereby, enabling them to accomplish the financial objectives they have set for themselves.
The SIP Planner Calculator uses the Power of Compounding principle to calculate the amount that your SIP investments will generate in the future. The longer you stay invested, the longer you gain.
Within a very short time, you can calculate various SIP investments, using this technology. Thereby, understanding the advantages and disadvantages, make the most informed choice.
You are in total control of your investment and can plan & invest from the comfort of your home. You do not have to choose mutual fund agents, conduct meetings with them, anymore. You, yourself, are the manager of your investment portfolio. With the easy availability of such technology, the world of investments is becoming transparent.
Most Online Calculators and Planners come with a disclaimer that they are not sufficient in determining the appropriate amount you would need for your various financial goals. The web-sites recommend that you independently evaluate the investment strategies and consult a Financial Advisor or Planner.
So do take their advise and get in touch with us immediately. Visit our website WealthBucket and know about the services on offer. We help investors to reap benefits from the best equity fund investment, Debt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund.
For a one to one chat, call us at +91 8750005655. Or Email at email@example.com.
Frequently Asked Questions
With SIP calculator you can check the wealth gain and expected returns for your monthly SIP investment. You get a quite accurate estimate on the maturity amount for your SIP, based on a projected annual return rate.
SIP puts your investments on auto-pilot with no requirement of timing the market.
SIP also helps inculcate regular saving habit and maintain healthy savings to surplus ratio, a key element of wealth creation. Using SIP, a predetermined sum of money is deployed every month or quarter (just like an EMI) by being auto-debited from your account on a fixed date.
A = final value
P = principle that you invested
r = (interest rate) return on investment
n = number of years.
However, with the SIP calculator, very little effort is required and the results shown are far more accurate than manual calculations. It helps us to arrive at the amount after investing regularly a certain amount for some time, within a few seconds. It helps you to know the SIP return based on the compound interest. The only inputs required are the amount to invest every month, select how many years to invest and submit. The calculator will display the final amount.
The online SIP calculator of WealthBucket helps investors make an informed decision on their investment. With its help, you can easily plan for finance for the upcoming life events such as the education of your children, buying a dream house, a wedding of your children, worry-free retirement, etc.
You just need to enter the below details to get the return value on your investment.
SIP tenure (months/years)
The expected rate of return.
Moreover, there is no penalty charged on missing the monthly SIP payment and the folio won’t be discontinued. And the money invested so far will continue to earn a return and you can withdraw it anytime.
However, if the account doesn’t have sufficient balance, you should arrange some funds.
One of the cool things about SIP is in case you miss your payments, there’s no penalty. Your investment will continue to be active and you can resume your payments anytime.
because, though, the Mutual Fund companies don’t penalize for non-payment of SIP instalments, the SIP investment will automatically get cancelled if 3 consecutive SIPs fail. That is, if you fail to make the payments for 3-consecutive months. Also, you will have to pay penalty fees to your bank for dishonoring the auto-debit payments. Hence, it is advisable to stop SIP payment by sending a request at least 30-days in advance.