What is DHFL Bank Mutual Fund SIP Calculator?

The DHFL Bank Mutual Fund SIP Calculator is a user-friendly interface that allows one to make systematic calculations of the returns that he could earn on SIP investments. Besides the investment amount, the tenure of investment, rate of return are provided, describing the future corpus's estimate.

How can DHFL Bank Mutual Fund SIP Calculator Help You?

The DHFL Bank Mutual Fund SIP Calculator is a valuable tool that can assist you in several ways:

• Plan your goal: It can help you plan the SIP amount and tenure required to get the corpus for your specific goal by entering the goals and corpus amount.
• Scope of Return Estimation: This will provide an expected trip figure that total SIP investments can produce. Calculations are being done on the assumed rates of returns along with the investment period.
• Investment Tracking: The investor or user will be able to keep track of the appreciation in the entire investment portfolio, stemming from money invested through the SIP and lump sum investments.
• Scenario analysis:  An individual, in the process, would try different investment amounts, tenures, and expected rates of return for people to arrive at a reasoned-out investment choice.
• Investing in a disciplined approach: This calculator reinstates the fact that investing in a disciplined and constant mode through SIP can help in wealth creation in the long term.

How Does the DHFL Bank Mutual Fund SIP Calculator Work?

DHFL Bank Mutual Fund SIP Calculator is a tool working on the functions of compound interest and the time value of money. The inputs considered in the calculation of this scheme include:

• Monthly SIP Amount: This is the fixed amount you plan to invest monthly through the SIP route.
• Assume a CAGR rate: This is an assumed CAGR  for annual expected returns that you might expect from your SIP investments. Here, it is more important to set practical expectations about the historical performance and market conditions than to care about the percentage.
• Investment Tenure: The tenure for which you would like to go for SIP in mutual funds. Usually, it is defined in the number of years.
• One Time investment (if any to be made): One can also fill any lump sum amount that one intends to invest apart from the SIP invested or committed by them to invest.

Formula to Calculate IDBI Bank SIP Returns with an Example

Using these inputs, the calculator applies the concept of compound interest to calculate the potential growth of your investments over time. The formula used by the calculator is:

Future Value = Monthly SIP Amount × [(1 + r/n)^(n×t) - 1] × (1 + r/n)/(r/n) + Lump Sum × (1 + r)^t

Where:

r = Expected Rate of Return

n = Compounding Frequency (usually 12 for monthly SIPs)

t = Investment Tenure in Years

Formula to Calculate DHFL Bank SIP Returns with an Example

Let's understand the formula with an example:

Formula:

FV = [P x r x (1 + i)^ n – 1]/i} x (1 + i)

In which, 

FV=Future value

P=SIP amount

I=Compounded rate of return

r=Expected rate on return

n=Number of installments that is, Investment duration x frequency that is, monthly/quarterly/half-yearly

Example for DHFL SIP Calculator

Let’s assume an investor invests Rs 7,000 per month in a scheme for a duration of Six years. Based on the parameter provided, the XIRR or SIP return for the investment is 13% per annum.

The SIP calculator provides the following results:

How to Use DHFL Bank SIP Return Calculator?

Using the DHFL Bank Mutual Fund SIP Calculator is straightforward. Here are the steps you can follow:

• Visit the DHFL Bank website and navigate to the Mutual Fund section.
• Locate the "SIP Calculator" tool and click on it to access the calculator.
• Enter the desired monthly SIP amount you plan to invest.
• Input the expected rate of return based on your investment goals and risk appetite.
• Specify the investment tenure in the years you plan to continue the SIP.
• Click on the "Calculate" button.
• The calculator will display the estimated future value of your investments, including the potential returns from your SIP and any lump sum investments.

Benefits of Using DHFL Bank SIP Calculator

Using the DHFL Bank Mutual Fund SIP Calculator offers several benefits:

• Convenience: An online calculator available wherever and whenever needed without hitches.
• It saves time: A calculator can do heavy computation work manually, which might take much of your time and get you tired.
• Goal-directed Planning: You can enter the goals of investments and get the needed SIP amount and tenure.
• Scenario Analysis: Various inputs can be entered as investment scenarios and then analysed to make your judgement factual.
• Reinforcement towards Discipline: The calculator drives discipline and perseverance in the thought that your disciplined SIP investments can help you create wealth over a long period.

Transparency: This accounting calculator gives one a transparent view of potential returns regarding managing expectations effectively in relation to their investments.

Other SIP Calculators:
1. SBI SIP calculator
2. HDFC SIP Calculators
3. ICICI Bank SIP Calculators
4. Axis Bank SIP Calculators
5. PNB SIP Calculators
6. Kotak SIP calculator 
7. BOI SIP calculator
8. Canara Bank SIP Calculator 
9. Union Bank SIP Calculator 
10. IDBI SIP calculator