Benefits and Uses of SIP Calculator for the Mutual Fund | Motilal Oswal

SIP Calculator for the Mutual Fund

The buzzword for investment today is “customisable investment”. As it is acknowledged that every investor is unique, with distinct financial goals for the future, instruments and products for investment have evolved to meet new investment trends. Demands of investors are the top priority in the financial world today, and to meet these demands, new modes of investment with near-assured returns are of the essence. This is where a systematic investment plan (SIP) comes in. Furthermore, online tools to encourage investment like the SIP calculator online have made investment even more preferred lately. 

SIP Basics

To understand the benefits of a SIP calculator online, you should first be aware of the SIP concept. If you wish to invest in mutual funds, that basically allocate your capital to market instruments, you should know how to invest if you are a small investor or someone who may not have large lump sums to spare initially. With a systematic investment plan, you can still invest in any mutual fund of your choice, but you don’t need to cough up a large sum of money upfront. You can stay invested for a long duration and invest small amounts of capital at regular intervals, say each month. 

A SIP can give you good returns as your wealth has the power of earning interest over interest and remains invested for a long term. You can choose the frequency of investments you make, and this is a great advantage as it helps you save in a disciplined way, while investing and building wealth. What’s more, with a SIP investment, you need not open a demat account or go through any unnecessary processes beforehand. 

The Use of a SIP Calculator Online

There are several reasons to invest in a SIP, the main one being to invest small amounts gradually rather than one large amount. In the long run, a SIP pays off as you get higher rewards with a minimum of market risks involved. Moreover, it's easy to understand the concept of a SIP, especially for people just beginning to invest. A SIP also encourages small investors to start saving diligently and invest. SIPs are very flexible too, and it is possible to increase your investment installment amount with a step up SIP function. Therefore, whether you wish to invest in a SIP or step up your present SIP, you can use calculators to compute your potential earnings at maturity with a step up SIP calculator or a SIP calculator for knowing returns on investment. 

The Benefits of Calculator Use

If it's easy to subscribe to any upcoming IPO online today, it is a breeze to use online calculators too. Here are some of the main advantages of using a SIP calculator online: 

  • Easy Usage - The online calculator is easy to access and use on regular apps and portals of brokerages, asset management companies and banks. 
  • Precise Estimates - You get accurate estimates of returns on amounts invested, so you know how much to invest and can plan ahead. This way, you know exactly how much to invest for long-term objectives.
  • A Few Inputs - You only have to enter a few details like your monthly installments, the tenure of investment, and the rate of return (based on past mutual fund data). 
  • Free to Use - Online calculator use incurs no charges. 
  • Effortless Use - Using a calculator saves you time and effort, helping you to make quick decisions and choosing a mutual fund SIP that suits you. 

Make Investments Effortlessly

Using a SIP calculator or a step up SIP calculator online makes your investment processes easy. This encourages investors to invest in lucrative SIPs, and since you do not have to open a demat account, processes are even more effortless. While you are considering investment, you should make a list of every kind of investment, and include any upcoming IPO too, so that you have a well-spread out financial portfolio. 

 

Related Articles: Investing in Mutual Funds is Now Easy with MO Investor App | Invest In Mutual Funds Online In 5 Simple Steps |  How to Analyse Mutual Funds for Big Returns | Tax Benefits of Investing in Mutual Funds | Mutual Fund - Need of Financial Plan | Upcoming IPO 

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