SIP Calculator
SIP or systematic investment plan is a popular choice of investment wherein one systematically invests in mutual fund schemes, often a fixed sum at a regular interval over a period of time. It functions as a recurring deposit and allows investors to elevate the power of compounding. SIP plans have a low entry barrier, making them attractive to young and small investors.
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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SIP Calculator
Advantages of investing in SIP
SIP is a smart way to start investing systematically.
- One can start with as low as Rs 500 and enjoy the power of compounding. Hence, SIP investment is attractive to young and small investors.
- SIP inculcates the habit of systematic investment at a fixed rate over a fixed tenure. One can automate the process where the amount will get debited from the account automatically.
- The auto-debit process makes SIP investment hassle-free. All the investor has to do is instruct his/her bank to auto-debit the SIP amount regularly.
- Rupee cost averaging allows investors to beat market fluctuation with a systematic investment approach. With each SIP instalment, units of shares get credited to the investor’s portfolio based on current NAV value.
- SIP lets you elevate the power of compounding by reinvesting your investment. To gain from compounding return, one must start investing early and stay invested for a longer period.
- Although SIP is linked to equities, it carries less risk than stock investment. SIP investment is meant for the long term, which reduces the risk. Moreover, one can stop a SIP at any time before incurring higher losses.
- If you don’t have significant surplus money, you can still invest in the equities by starting a SIP plan with a small amount and accumulate more stocks over a period. SIP allows you to diversify your portfolio with a regular investment of a small amount.
How do you calculate return on SIP?
Return on SIP is calculated following the compounding return formula, which is as below,
M = P × ({[1 + i]n – 1} / i) × (1 + i)
Where,
- M stands for the maturity amount at the end of the investment period
- P is the SIP amount
- n refers to the number of payments you make
- i is the periodic rate of interest
The rate of interest in SIP investment depends on market condition. It may increase or decrease, which will impact the estimated maturity amount of the SIP.
SIP Calculator: Makes Your Life Easy
Calculate returns on your SIP investment plans with the help of a SIP calculator. Compare different SIP plans to select the best.
Online SIP calculators have made life easy for investors by calculating the outcome quickly and accurately.
The formula to calculate return on SIP is quite cumbersome. But these calculators use simple user input and return accurate results, which means anyone with minimum knowledge of computer can use SIP calculator online to calculate return on their investment.
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Advantages of using a SIP calculator
By using a SIP calculator, one can,
- Compare between SIP plans to choose the suitable one
- Estimate return on different tenure and investment schemes
- Estimate return on a mutual fund scheme at the end of a tenure
- With the estimate in hand, one can plan the financial future better
Mistakes To Avoid When Investing In SIP
While investing in SIP, avoid making the following mistakes to optimize your return.
- Choosing the wrong investment amount: When investing in SIP, don’t commit to an amount that is too little or too much. Select an optimal amount to invest, which you can adjust with time, keeping the performance of the fund in mind.
- Investing only for short-time: To leverage the true power of SIP, you must have a long investment horizon in mind. SIP funds tend to perform better in the long-run.
- Not adjusting the investment amount: Our financial goals keep changing with time as we move forward in life. With SIP, you should regularly adjust (increase) the investment amount when you are confident about the fund to perform better.
How to use the Angel Broking SIP calculator
Calculate SIP investment return with Angel Broking and take control of your financial future. Use the following steps.
Step 1: Input the amount that you’re keen on investing. If you are investing in a MF scheme, the minimum investment amount required is Rs 500. However, some funds may require a minimum investment amount of Rs 1000.
Step 2: Here, you enter an estimated rate of return on the investment. You can guess the rate of return on the fund based on its past performance. It won’t be accurate but will give a fair idea.
Step 3: Insert the tenure of the investment or the duration of time you want to stay invested.
Step 4: The last variable that you need to input is the frequency of SIP. In most cases, SIP plans require monthly investment, which you need to select from the dropdown.
Angel Broking SIP return calculator is a simple, user-friendly tool that gives you the freedom to calculate return on investment accurately.
| Scheme Name |
1 Year Return |
3 Year Returns |
5 Year Returns |
| ICICI Prudential Bluechip Fund |
9.80% |
12.43% |
9.75% |
| DSP Tax Saver | 16.55% | 13.53% | 11.83% |
| Franklin India Equity Fund | 5.95% | 9.67% | 8.76% |
| ICICI Prudential Value Discovery Fund | 0.15% | 7.06% | 7.28% |
| Axis Long Term Equity Fund | 17.62% | 17.74% | 12.72% |
| Nippon India Tax Saver (ELSS) Fund | 3.67% | 4.01% | 5.16% |
| DSP Equity Opportunities Fund | 15.24% | 12.88% | 11.07% |
| Motilal Oswal Long Term Equity Fund | 15.90% | 15.63% | – |
| Aditya Birla Sun Life Pure Value Fund | -8.59% | 3.52% | 6.14% |
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 the 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 installment, 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.
How to use Angel Broking's systematic investment plan calculator
Angel Broking’s systematic investment calculator is simple and straightforward 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,
- Using the SIP calculator, you can guess the return on your mutual fund investment at the end of the investment period
- With clarity over return amount, you can plan your finances better and adjust investment goals
- 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 at 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 the 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:
- Instil regular investment habit
- No need to time market
- Benefits of starting early even with a small amount
- Benefits from rupee cost averaging
- 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, which 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 installment 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 penalized 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.
