SIP (Systematic Investment Plan) Calculator
Did you hear about SIP and wondered if it is a good option? SIP is one of the favourite investment choices of millennials to achieve financial success in life. It lets them make small, periodic investments to mutual funds without worrying too much about market performance. For its simplicity, convenience, and performance SIP is steadily rising in popularity.
SIP (Systematic Investment Plan) is a method of investing systematically in the market. It is not a product in itself but another way of investing in a mutual fund. You pay a fixed amount monthly for a period, instead of investing lump-sum. It works like a recurring deposit. And, each month units get credited to your portfolio depending on ongoing market condition. That is, when the market is low, you get more units allocated in your portfolio, and less when the market is rising. SIP works on rupee cost averaging that doesn't require you to time the market.
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Advantages of investing in SIP
- SIP investment benefits you in more ways than one.
- The entry barrier is low; meaning one can start with as little as Rs 500 and gradually build their portfolio. This allows young and early investors to take to the market and instils a healthy saving practice in them.
- It turns you into a disciplined investor. Since it is a monthly commitment, the investors are forced to set aside a fixed amount for investing in the market.
- SIP leverage the power of compounding. Every month the accumulated amount gets reinvested along with the new units allotted to your portfolio. So, at the end of the tenure, wealth accumulation is better.
- It offers convenience. Unlike mutual funds, you don't have to follow the market to plan entry. You can automate the process by instructing your bank to debit your account every month for a fixed amount.
- Don't have time to wrestle market mood? It is hard to predict when market trends will change. Avoid the hassle with SIP.
- The longer you stay invested, the more value you accumulate. However, SIP gives you the flexibility to invest for any period and any amount.
- However, it is vital to take note that SIP investment isn't free from market volatility. Further, you need to align your SIP investment amount with the rest of your financial goal to start an affordable saving plan. Calculate your saving amount to determine how much you can invest.
Why must you invest in SIP?
- To make an investment plan successful, you need to commit to it regularly. SIP takes the hassle out from following the market and replace it with regular instalment amount. You can start your investment plan early and even begin with a little amount of Rs 500.
- You're minimising risk and maximising return by making periodic investment. You enjoy the benefits of wealth creation through compounding even when you invest a small amount.
- Achieve your life's goals with systematic investment. Whether it is buying a house, building a nest egg for retirement, or financing children's education, plan it with SIP.
- Enjoy the benefits of mutual fund investment with a diversified portfolio without going in length skimming through the market.
How do you calculate return on SIP?
- But what is the ideal way to know how much you'll receive in return from your SIP? Worry not! You can now use Angel Broking's smart SIP calculator to align your SIP investment with the rest of your financial goal.
- It runs on a simple algorithm and doesn't demand technical expertise from the user.
FAQs - Frequently Asked Questions
What is a SIP Calculator?
A SIP calculator is a simple algorithm-based tool to give investors an idea of return on their SIP investment.
How can a SIP return calculator help you?
It helps you calculate return on your investment based on the inputs given. It let you calculate return under different investment scenarios and compare them so that you can adjust your financial goals accordingly.
How do SIP calculators work?
It works on user input. You'll need to enter your monthly instalment, investment tenure, and expected return and the SIP calculator will compute the result in a few seconds. It calculates the return on compound interest formula.
Angel Broking SIP return calculator is designed on a simple algorithm so that anyone can use it.
Angel Broking SIP return calculator is designed on a simple algorithm so that anyone can use it.
How to use Angel Broking's systematic investment plan calculator
Angel Broking's systematic investment calculator is simple and straight forward enough for anyone to use it. To use the calculator, the user has to follow the steps mentioned below,
Select an investment amount
Select the frequency of investment
Select total investment tenure
Set expected return rate
The SIP investment calculator will return the result in a few seconds.
Advantages of using Angel Broking systematic investment plan calculator
The advantages of using SIP calculator online are,
1. Using the SIP calculator, you can guess the return on your mutual fund investment at the end of the investment period
2. With clarity over return amount, you can plan your finances better and adjust investment goals
3. Using the SIP calculator to compare different investment scenarios you can select the best mutual funds for investment.
1. Using the SIP calculator, you can guess the return on your mutual fund investment at the end of the investment period
2. With clarity over return amount, you can plan your finances better and adjust investment goals
3. Using the SIP calculator to compare different investment scenarios you can select the best mutual funds for investment.
Are SIPs similar to mutual funds?
SIP isn't an investment tool. Instead, it is one of the two ways to invest in mutual funds.
Can I modify my SIP amount?
Yes, you can adjust your SIP amount as per your convenience.
How much can I invest in a SIP?
You can start with as little as Rs 500 and invest up to any amount you want. But your investment must align with the rest of your financial commitments – your income minus existing expenses, liabilities, and loan payment.
How much should you invest? Use SIP calculator to compare return values in different investment situations to select the best one.
How much should you invest? Use SIP calculator to compare return values in different investment situations to select the best one.
What is the maximum tenure of a SIP?
There is no maximum limit. However, the minimum tenure is fixed at three years.
What are the benefits of SIP?
The benefits are as following
1. Instil regular investment habit
2. No need to time market
3. Benefits of starting early even with a small amount
4. Benefits from rupee cost averaging
5. Simple way of investing through ECS.
1. Instil regular investment habit
2. No need to time market
3. Benefits of starting early even with a small amount
4. Benefits from rupee cost averaging
5. Simple way of investing through ECS.
Can I start SIP at any time or when the market is high?
The advantage with SIP is that you don't have to time the market. It is a safe method to invest in mutual funds. SIP works on the principles of rupee cost averaging, that means more units get allocated when the market is down and fewer units when it is rallying.
Are there any upper limits in SIP investments?
No, SIP doesn't limit you to any investment amount. However, the instalment amount should depend on your monthly income, existing liabilities, and future financial goals. After taking these factors into account, choose an investment amount.
Can I miss a SIP?
Your SIP will not get terminated for missing one SIP. If you don't have enough money in a month, you can skip SIP payment. You'll not get penalised for that.
In which mutual fund should I start SIP?
It should be based on your financial goals.
How to shorten SIP duration?
SIP doesn't have a lock-in period, meaning that you can withdraw/stop any time. There is no penalty imposed.
