SIP Calculator – Systematic Investment Plan Calculator
Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. ASIP calculatoris a tool that helps you determine the returns you can avail when parking your funds in such investment tools. Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals. SIPs usually allow you to invest weekly, quarterly, or monthly.
What is a SIP Calculator?
A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately.
Thesemutual fund sip calculatorsare designed to give potential investors an estimate on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any).
This calculator will calculate the wealth gain and expected returns for your monthly SIP investment. Indeed, you get a rough estimate on the maturity amount for any of your monthly SIP, based on a projected annual return rate.
How can a SIP return calculator help you?
SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future.
ASIP calculator onlineis a beneficial tool, which shows the estimated returns you will earn after the investment tenure.
Few of the benefits of SIP calculators include –
- Assists you to determine the amount you want to invest in.
- Tells you the total amount you have invested.
- Gives an estimated value of the returns.
How do SIP calculators work?
A SIP plan calculator works on the following formula –
M = P × ({[1 + i]^n – 1} / i) × (1 + i).
In the above formula –
- M is the amount you receive upon maturity.
- P is the amount you invest at regular intervals.
- n is the number of payments you have made.
- i is the periodic rate of interest.
Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%.
then the monthly rate of return will be 12%/12 = 1/100=0.01
Hence, M = 1,000X ({[1 +0.01 ]^{12} – 1} / 0.01) x (1 + 0.01)
which gives Rs 12,809 Rs approximately in a year.
The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
How to use Groww’s systematic investment plan calculator?
You can use theSIP amount calculatorfrom Groww within a few clicks.
Just enter the monthly invested amount (the amount for which you have started the SIP), the number of years for which you want to stay invested, and the expected rate of return.
As soon as you input the value, the calculator will show you the estimated amount you can avail after your investment tenure is complete.
Advantages of using Groww systematic investment plan calculator
Groww offers thebest SIP calculator, which provides the following advantages –
- Plan your investment based on the amount and tenure.
- It helps you compute an estimation of the total value of investments at the end of your SIP tenure.
- Shows accurate results and helps you save time required during a manual calculation.
A systematic investment plan calculator ensures that your savings portfolio is as per your requirements and financial needs.
FAQs
An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.
What if I invest $5,000 in SIP for 20 years? ›
If someone begins a SIP of 5000 per month for a span of 20 years, at 12% assumed annualized rate of return per annum, your total investment in 20 years is Rs. 12 lakh and the accumulated corpus at the end of tenure is close to Rs. 50 lakhs.
What if I invest $15,000 a month in SIP for 5 years? ›
Here is what a Rs 15000 per month SIP in mutual funds can do over the years: 5 year SIP of Rs 15000 monthly = Rs 12.8 lakh. 10 year SIP of Rs 15000 monthly = Rs 35 lakh. 15 year SIP of Rs 15000 monthly = Rs 75 lakh.
What if I invest $1,000 a month in SIP for 30 years? ›
If you were to invest Rs 1,000 per month into an equity SIP over a span of 30 years at 12 per cent per annum, you would have invested only Rs 3.6 lakhs. However, your portfolio's value would have grown to an impressive Rs 34.9 lakhs.
What is the 8 4 3 rule in SIP? ›
The rule of 8-4-3 for mutual funds states that if you invest Rs 30,000 monthly into an SIP with a return of 12% per annum, then your portfolio will add Rs 50 lacs in the first 8 years, Rs 50 lacs in the next 4 years to become Rs 1 cr in total value and adds further Rs 50 lacs in the next 3 yrs to reach Rs 1.5 cr.
How much is $5000 for 5 years in SIP? ›
How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
Can I double my money in 5 years? ›
As a rate of return, long-term mutual funds can offer rates between 12% and 15% per year. With these mutual funds, it may take between 5 and 6 years to double your money.
What happens if I invest 20000 a month in SIP for 10 years? ›
A monthly SIP of Rs 20,000 in Quant Small Cap Fund would have grown to Rs 1.04 crore in the last 10 years. The scheme gave an XIRR of 27.73% in the same period. Quant ELSS Tax Saver Fund would have turned a monthly SIP of Rs 20,000 into Rs 95.38 lakh with an XIRR of 26.04% in the last 10 years.
How much is $500 a month invested for 10 years? ›
Here's how a $500 monthly investment could turn into $1 million
| Years Invested | Balance At the End of the Period |
|---|
| 10 | $102,422 |
| 20 | $379,684 |
| 30 | $1,130,244 |
| 40 | $3,162,040 |
Dec 17, 2023
Say you invest Rs 2,000 every month through SIP in an ICICI Bank mutual fund for five years, and let's assume an average annual return of 12 per cent. By the end of five years, your total investment of Rs 1,20,000 could grow into around Rs 1,62,000.
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
How long will it take you to double your money if you invest $1000 at 8% compounded annually? ›
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
How much return can I expect from SIP in 5 years? ›
Best SIP Plans for 5 Years to invest (Debt)
| Fund | AUM (In Crs) | 5 Yr Return (%) |
|---|
| ICICI Prudential All Seasons Bond Fund Direct Plan Growth | ₹11914 Cr | 8.36 % |
| SBI Dynamic Bond Fund Direct Growth | ₹3077 Cr | 7.98 % |
| Kotak Dynamic Bond Direct Growth | ₹2543 Cr | 7.69 % |
| Bandhan Dynamic Bond Fund - Direct Plan - Growth | ₹2337 Cr | 7.65 % |
1 more rowThe calculator will display the estimated maturity value or the required investment amount to achieve your goal. For example, If you invest Rs 10,000 per month for 5 years at 12%, you will receive Rs 8.11 lakh on maturity.
Is 10k SIP good? ›
The flexibility of choosing the investing frequency—be it weekly, monthly, quarterly, or annually—adds to its appeal. With just Rs. 10,000 a month, SIPs offer the potential to build a substantial financial reservoir over time.
Which is the best SIP plan for 5 years? ›
Listed below are some of the best equity funds for which you can start a SIP.
- Quant Small Cap Fund Direct Plan-Growth. ...
- Tata Digital India Fund Direct-Growth. ...
- ICICI Prudential Technology Direct Plan-Growth. ...
- SBI Technology Opportunities Fund Direct-Growth. ...
- Aditya Birla Sun Life Digital India Fund Direct-Growth.
