SIP Calculator

The SIP calculator is an online tool that help investors estimate returns on their Systematic Investment Plan (SIP) investments over a specified time. It uses a special math formula to calculate the investment interest earning, it also can help investors plan their SIP investments effectively.

The SIP calculator uses the following formula:

M = P × ({[1 + i]n – 1} / i) × (1 + i)

M is the maturity value, P is investment amount, n is the number of payments made, and i is the rate of interest.

For example, if you invest ₹1,000 per month for 12 months at a periodic rate of interest of 12%, the rate of return per month would be 12%/12 = 1/100 = 0.01, and at the end of one year, you will receive approximately ₹12,809.

1. Equity SIP: This plan is Invested primarily in equity or stocks of companies, it offer the potential for higher returns, but it also subject to market volatility.
2. Debt SIP: It is generally used in fixed income investments.Stable income and low volatility can be obtained.
3. Hybrid SIP: Invests in a combination of equity and debt instruments, the advantage is diversity.
4. ELSS (Equity-Linked Saving Scheme): Invest mostly in equities and offer tax benefits under Section 80C of the Income Tax Act.
5. Sectoral SIP: Invests in such as banking, technology, healthcare, etc.
6. Index SIP: Replicates a specific market index and aims to deliver returns like the index they track.
7. Gold SIP: Invests in gold ETFs or gold mutual funds, it can give you the opportunity to accumulate gold over time.
8. International SIP: Invests in foreign securities and so on.

• regular investing: SIPs encourage a systematic approach to investing, help you develop a saving and investing habit.
• Flexibility and easy-to-use: SIPs offer flexibility in terms of investment amounts and time periods.
• Goal-based investing: SIPs can be aligned with specific financial goals, can provide a structured approach for your investing.

Define your financial goals and determine the purpose of your investment.

Consider how much risk you are comfortable with, based on your age and circumstances: how much income you need, what other financial commitments you have made, and whether you have investment experience.

Start your SIP plan by choosing the best mutual fund schemes and setting up the SIP investment amount and frequency.

Define your financial goals and determine the purpose of your investment.

Review and rebalance your investments to stay on track with your investment goals.

Lump-sum investments need a significant amount of money in a single transaction, usually when an investor has a pre-existing amount of funds immediately available for investment.

In contrast, SIPs are invested a fixed amount at regular intervals, such as monthly or quarterly.

For more detailed comparisons and differences, check out sip vs lumpsum

without financial goal planning:you should have clear financial goals to determine the appropriate investment amount, tenure, and asset allocation for your SIP.

Ignoring professional guidance: Seeking advices from financial advisors can provide valuable insights and help you to optimize your SIP investments.

Estimating the returns: This calculator estimates how much you can expect in the ASBA receipt at maturity based upon the invested value, the duration invested in years, and the expected return on your SIP investments.

Figuring out the requisite SIP amount: Based on your financial goal and the time allotted for investment, the calculator will determine the monthly SIP you need to invest to achieve your financial goal.

Investment scenarios: You can compare the investment options using the calculator in various scenarios. You can make decisions about SIP investments based on these differences.