A SIP (Systematic Investment Plan) calculator helps you estimate the returns on your mutual fund investments made through SIP. By entering the monthly investment amount, expected rate of return, and investment duration, you can instantly calculate the future value of your investment. This tool is essential for retirement planning and wealth creation.
The SIP calculation uses the future value of annuity formula:
FV = P × [((1 + r)n - 1) / r] × (1 + r)
Where:
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds.
SIP returns are calculated using the future value of annuity formula considering compounding.
Your SIP returns are affected by three factors: monthly investment, expected return rate, and investment period.
Yes, most mutual funds allow you to increase your SIP amount at any time.
SIP reduces the risk of market timing and is suitable for regular investors, while lumpsum may give higher returns but with higher risk.
A higher expected return rate increases your maturity amount, while a lower rate decreases it.
Compounding allows your returns to earn returns, significantly increasing your wealth over long periods.
Yes, you can redeem your mutual fund units anytime, but it's advisable to stay invested for the long term.