It 's time to take out that SIP return calculator and see if your investment is leading to your goal.

It doesn 't matter if you 're an expert investor or a newbie - you must have definitely learnt of the multiple benefits of investing in SIPs and the ever-useful SIP return calculator. For someone who wishes to build up capital over the longer term and is not familiar with equity markets, investing regularly through SIP in a mutual fund is one strategy that can ensure success to a large extent. What it really means is that you invest a fixed sum from your savings every month, instead of making a heavy one-time investment. Over the years, an SIP can add up to give really substantial returns, and this you can calculate with your SIP return calculator. While mutual funds helps investors diversify across a host of stocks, SIPs will help you diversify overtime. And by staying committed to your SIP for a long period of time, you 'll be able to average out the cost of purchase. Investing in SIPs is a long haul, so be sure to make the most of your time here. And always keep your SIP return calculator close.

Begin with goal setting
SIP is a goal-based investment and just like any investment it exists to fulfill a purpose. Your goal could be anything - saving for your retirement, your child's marriage, further education or even a foreign holiday. Linking your SIPs to specific goals will not only help you monitor your progress every month, but will also determine how much money you 're keeping away every month to get there.

For example, a monthly SIP of Rs 1000 at the rate of 9 % would grow to Rs 6.69 lacs in 10 years, Rs. 17.83 lacs in 30 years and Rs. 44.20 lacs in 40 years. The true benefit of SIP is reaped by investing at lower levels. The SIP return calculator helps in determining the amount you need to invest every month to reach your goal in the stipulated time.

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Beef up your investment amount every year
Although SIPs follow a pattern in the way payments are made, the amount doesn 't necessarily have to stay the same every year. As your income rises, your savings will also go up. Ideally, for a salaried person, the investment amount should increase every year in line with the increase in your income. By doing so, you can have bigger goals even though your present income doesn 't allow it. The step-up SIP can have a dramatic effect on your savings. Use your SIP return calculator to see that even a 10 % increase in the SIP amount can give you a 45 % bigger nest egg. That 's how your savior - the Provident Fund, is so effective as a retirement savings tool.
 
Spread your SIP payment dates
Fund houses have specific dates on which SIP investments are made, and we 're sure yours has too. So if you 're planning to start an SIP through the same funds, or different funds for each goal, it would be wise to spread each investment across different dates of the month. This allows you to retain some cash in your savings account since the money does not flow out at one go. But the bigger advantage is that you reduce the risk of market timing because the money gets invested on different days, refuting any adverse market movements in the interim.

You must know when to review your SIPs
Knowing when to end something is just as important as deciding when to begin. If you 've been smart and linked your SIP to a goal, end the SIP as the goal draws closer. And if you 've achieved your goal before time, shift your investments to a more stable investment option. Leaving your money exposed to the whims of the market would not be a wise move. On the other hand, if you have not managed to save the required amount, extend the SIP tenure. Whatever the case may be, keep your SIP return calculator handy so you  don 't mess up the calculations.