A Systematic Investment Plan is one of the best ways to invest in the stock market. By infusing investments regularly at periodic intervals, an SIP allows you to take advantage of the rising and falling stock prices. That’s not all. Overtime, it can also lower your overall cost of investment through rupee cost averaging as well.
But before you start investing in an SIP, it is essential for you to know just how much returns you’re likely to get through it, wouldn’t you say? So then, how do you go about determining this? Here’s where an online SIP calculator comes into the picture. Continue reading to know all about this nifty little tool.
A Systematic Investment Plan calculator is an online tool that allows you to get a fair idea of the amount of return that you’re likely to get via an SIP. The investment plan calculator basically uses historical data to determine your future returns. And so, although the tool gives you the amount of returns, you should remember that it is only an estimate and can vary depending on actual market performance.
In addition to letting you know the amount of returns that you’re likely to earn by investing in a Systematic Investment Plan, an online SIP calculator also offers a couple of other benefits. Here’s a quick look.
1. It helps you determine the amount of investment that you need to make
By running different values through an SIP return calculator, you can easily determine the amount of investment that you would have to make to reach your investment goals.
2. It only takes a few seconds
The tool is exceptionally easy and user-friendly. All that you have to do is enter the values in the calculator and submit. The tool will automatically calculate the estimated returns and display them to you within seconds.
As you’ve already seen above, using an investment plan calculator is extremely easy and hassle-free. Here’s the step-by-step process that you would have to follow.
See how easy it is to calculate the expected returns from an SIP? Now, if you’re planning to start one, you would need to have an online trading and demat account with you. If you don’t have one already, simply get in touch with Motilal Oswal to open one for free.
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