With the SIP calculator, you can calculate the estimated future value of your SIP investment. This calculator will give you a basic idea of how much money and how many years of investment will give you good returns. Thus, it will help you predict the maturity amount of your investment in SIP. To get brief knowledge about this topic keep reading below.

How Does It Work?

The formula and working procedure of our SIP calculator is explained below.

Our Calculator takes three inputs from the user that are listed below to return the estimated value of their SIP.

1. Investment Amount
2. Expected Rate of Return
3. Investment Duration

There is also one more Input namely the Inflation Rate (%) which is optional. You can enter the inflation rate on this field according to the current situation or you can leave it as it is.

Formula:

A = P × ({([1 + r]^n) – 1} / r) × (1 + r)

Where,
    A=> Your Estimated Returns In SIP
    P=> Your Invested Amount In SIP
    r=> Your Expected Rate of Return From SIP
    n=> Total Number Of SIPs Made

What Is SIP?

You are here because you are looking for a good investment scheme, am I right? We all know that SIP is one of the good schemes for getting good returns in this era.

So, here we will cover everything about SIP which stands for Systematic Investment Plan. As we all know, it surely takes a long time to get a bigger return. But, as their name suggests, SIP is the continuous process of investing a specific amount for a long period.

It is a type of investment scheme. Generally offered by many popular mutual fund companies. With SIP anyone can invest smaller amounts in these schemes periodically (weekly, monthly, quarterly) in their selected mutual funds.

Thus, Making periodic investments in SIP will make you sustainable in this era of costliness.

How To Get Good Returns With SIP?

Here we will guide you about how SIP will grow your future if you keep it for a long time.

It will double your return after a minimum of 10 years so it is good to keep it long for more than 10 years.

First, select the best mutual fund companies by yourself. Or reach an expert in this field so they can help you set up a good SIP for yourself.

Now, decide periodic investment amount. Please choose the amount of value that you can invest for a long time. It is good for you if you will keep your periodic investment for a long time without sleeping anyone of it. Because compound interest is the key to good returns. So, decide your investment amount carefully so that you can invest periodically for as long time as you can.

What Are The Types of SIP?

1. Regular SIP:
You can set the fixed amount of the SIP installment amount and can't be changed or missed in between.
2. Step-up SIP (Top-up SIP):
You can increase your SIP installment amount at regular intervals(such as at 1 year) according to your financial condition but can't decrease it. i.e. This SIP is good for a salaried person who can step up their investment after every year as their salary increases.
3. Flexible SIP:
You can alter your SIP installment amount according to your financial condition or market volatility.
4. Multi SIP:
5. Trigger SIP:
6. Perpetual SIP:
You can break this SIP at any time according to your needs. i.e. You can start and end your SIP at any time. In short, there is no pre-specified amount of time. So, you can end it whenever you want.

SIP Advantages Compared to Lump Sum Investments

• It is flexible: Create, update, or delete SIP anytime.
• Less effect of market volatility: Amount is invested periodically such as monthly, so market volatility impact is almost little to minor.
• Automated Installment: This monthly automated approach to investment makes you a regular money saver/investor.
• No need to give time to market analysis: The amount is invested by mutual fund company experts. So, no need to give time to analysis or other extraordinary research.