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Online Calculator for Systematic Investment Plans
05 Jan 2023

A systematic investment plan (SIP) is a good way to maintain discipline in investment. Several individuals believe that SIPs and mutual funds are identical. However, a systematic investment plan is simply a method to invest in any mutual fund. The difference lies in the way of investment. In a mutual fund, you invest a lump sum amount, but in a SIP, you invest regular small amounts at intervals. As with any investment, investors like to know about returns. A SIP calculator online can help you to determine the returns you will get from a particular SIP, depending on your investment tenure, intervals and rate of interest. 


SIP - What is it, and why should you invest?

Depending on every investor’s individual investment goals, investments are made accordingly. In case you want to make small payments towards your investment, in regular intervals, you can sign up for a SIP. A SIP is a good way to get into the world of investing with amounts as small as Rs. 500 per month. Your instalments of investment may be monthly, quarterly, and more, depending on disposal income. For novices and people who are just beginning to earn, a SIP is a good way to invest. You do not even have to open a demat account to begin a SIP. Furthermore, if you wish to gradually increase your SIP instalments, you can do so with a step-up SIP. A step-up SIP calculator informs you of your returns and maturity amounts with the additional amounts added to an existing SIP. 


How a SIP Calculator Online Works

Nowadays, whenever you choose an investment product, you get the facility of using online calculators to compute returns on investment. A SIP calculator is an online tool that aids you in the calculation of the returns you would likely earn from a SIP. Moreover, the calculator informs you about the amount you would require periodically (monthly) to achieve your target of a corpus. 


SIPs are known to be good ways to invest your money and diversify your financial portfolio, among other instruments you may invest in like an upcoming IPO. If you have a convenient online device to automatically compute your potential gains from a SIP, you can make informed decisions. All you need to do is to provide some inputs, and the online SIP calculator or step-up SIP calculator will give you results in mere seconds. 


A SIP calculator online typically has three fields for inputs:

1. Your monthly investment amount

2. Your investment tenure

3. Your expected returns (annually)


The amount you enter can be as little as Rs. 500, or as much as Rs. 10,000, or any other amount. Next, the tenure of the investment should be entered. In general, mutual fund houses require investors to remain invested in SIPs for a term of six months, at least. However, you may seek a longer term. In the field that requires you to enter your expected returns, you must fill the rate of returns. This rate is generally based on the past performance of the fund. After you have entered all the values, the SIP calculator online will work its magic and give you the estimated amount you would earn over a certain period. 


Easy Calculations

There are many ways to diversify your portfolio so you invest with care and your investments give you substantial returns in the future. For some, like equity, you may have to open a demat account. For a SIP, you do not have to do this. You can also delve into any upcoming IPO investment and explore different ways to earn returns. 


Related Blogs: 5 reasons for the sharp growth in SIPs in India | Tax implications on a Mutual Fund and SIPs | SIP and the power of compounding | If you're investing in SIP, make Mutual Funds SIP calculator your best friend

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