SIP Calculator - Calculate your Returns on Mutual Fund Investments Online
Know how much you need to invest in Mutual Funds Systematic Investment Plans (SIPs) and calculate expected returns on SIPs instantly
Systematic Investment Plan (SIP) – Best way to invest
- Invest in small amounts regularly
- Opt for monthly auto-payment
- No worries about market ups & downs
- Plan budget and expenses better
What is the meaning of SIP?
An SIP is a systematic investment plan which lets you invest a fixed amount periodically in a selected mutual fund. For example, if you start a monthly SIP of ₹5,000 in a mutual fund, that amount will automatically be deducted from your bank account and invested in that mutual fund every month on the pre-decided date. This makes an SIP an automated way to invest.
There are many reasons why you should choose SIPs over other investments. Here are a few important ones:
Disciplined approach to investing: Many people wait to invest in stock options by timing the market. However, this requires market knowledge, research, and technical analysis. If you are new to investing, an automated SIP is a great way to begin.
Take advantage of Rupee Cost Averaging: Since the amount invested is constant, one buys more units when the price is low and fewer units when the price is high.This means that the average cost is lower.
Simple and easy to monitor: You do not have to take time off from your schedule to check your investments. Plus, our dashboard makes it easy to monitor the health of your investments every month.
The benefit of starting early: The key to growing your wealth is to start early and make regular investments. With SIPs, the minimum amount required to start an investment is very low, making it easy to start investing right away.
SIP returns are calculated according to compound interest. Enter the amount you wish to invest every month, choose the number of years you wish to continue the investment for, and our calculator will automatically calculate the amount of return. It will also show you a comparative study of your SIP return vs other investment options like Fixed Deposits.
You can make monthly investments to your SIP account. Or, you can link it to your bank account to ensure that the deductions are made automatically.
There is no rule of thumb that dictates how long an SIP investment should be. However, on an average, a SIP for four years and above runs a low risk of loss. Short-term investments generally have higher returns but also come with a high risk of loss.
Yes! The investment market is generally volatile, and a lumpsum investment comes with the added risk of loss. Instead, it is always better to invest in SIPs. If the markets are high, you buy fewer units of the fund and if the markets are low, you buy more units for the same amount. This helps you ride out the volatility and earn better returns.
ELSS and Equity Funds are one of the best fund schemes to invest in SIP. Amount invested in ELSS is exempted from taxable income under Section 80C. Equity Funds generally provide high returns and are a great investment option if you are looking to make profits.