A SIP calculator in mutual funds is a financial calculator that can help you out in figuring out how much money your scheme will accumulate over a long period of time. This is one of the most important tools of sound financial planning. Also, it is much like a simple calculator you use every day. You have to just put in simple inputs and you get the money you will have. Try the below calculator.
How does an SIP calculator in mutual funds work?
A sip calculator in mutual funds requires basic inputs like how much money you will be investing monthly, what your expected rate of return is, and what the total time period of your investments will be. Once all these inputs are done, it will calculate estimated returns and total value.
For example, if you want to do a SIP of 25000 Rs a month, and you expect that your mutual fund scheme will grow by 12% per annum and you keep on investing for 20 years then the total value of your investments will be ₹2,49,78,698.
And if you invest only through SIP or systematic investment planning, 20000 Rs a month for a similar period and the same growth, the total value of your investments will be ₹1,99,82,958.
Similarly, when you increase the investment from 25000 Rs to 30000 Rs and expect a higher return on your investment say 13%, your total value will increase to ₹3,43,65,574.
What are the benefits of A sip calculator in mutual funds?
A mutual fund sip calculator is very beneficial for all investors for the following reasons.
1- They are easy to use. You don't need the help of any financial advisor or technical expert to figure out how they work.
2- They can help you plan your retirement well so that you don't worry when you retire because of insufficient funds in your retirement account.
3- A mutual fund sip calculator can keep you focused because it will tell how much money you're going to accumulate over time. Once you know how much money you require for your retirement through the help of a retirement calculator, this mutual fund sip calculator will help you out in making the required monthly investment to reach that figure.
4. An SIP calculator can also help you out in assessing different mutual fund schemes available.
How can you use MrMoneyFrugal's mutual fund sip calculator?
This is easy. If you have started investing in any fund and want to know how much you will accumulate over time. You can just do the following things.
Find out how much return the fund has given over 10 years. Now get to our sip calculator. Put the amount you will invest every month, put the period, and the calculator will calculate the estimated return, total value, and the total money you invested. Is not it that easy?
Why should you use the Systematic investment plan calculator of MrMoneyFrugal?
There are many reasons to use the calculator of MrMoneyFrugal.
1- It is easy to use without the help of any IFA or technical expert.
2- It does not come with any jargon which you or anybody can't understand.
3- It does not have too many input requirements. With just 3 inputs, you get what you need.
4-It shows the result instantly.
FAQ
1- Is SIP safe for accumulating wealth for retirement?
SIP or systematic investment planning is a way of contributing to your retirement through a disciplined approach. Here a fixed amount is debited from your account towards a scheme on a prefixed date. Kindly read all the scheme-related documents carefully before making any investment.
2- Does a SIP calculator in mutual funds provide accurate results of investments?
Yes. It works on mathematics. It provides results based on inputs only. So, there are no chances of inaccuracy subject to inputs are given correct.
3- How SIP is different from lumpsum investments?
SIP is a disciplined approach to making contributions to your investments. It is a continuous process where a fixed sum is debited from your savings account on a predetermined date towards a scheme of your choice. However, a lump sum is a one-time investment.
4- Do I pay a penalty if we miss any SIP?
No. However, it may differ from fund house to fund house. Please read the scheme-related documents well or contact your IFA or the fund house of the scheme.
5- Can I discontinue my systematic investment plan whenever I want?
Yes. You can discontinue it anytime. For more information, you may contact the fund house of the scheme.
6- Can we use a SIP calculator for home loan calculations?
If you want to calculate about home loans, you should use a home loan calculator.
7. Is there any cap on making investments through a systematic plan?
You can start as little as 100 Rs in some schemes. There are also many schemes where you can start with 500 Rs. However, there is no limit on maximum investment amounts. You can also confirm the maximum and minimum investment amounts from the fund house.
8. Is there any minimum and maximum period of investment through a systematic investment plan?
There is no such investment tenure. You can keep on investing as many years as you want.
9. Is there any locking period in systematic investment plans?
You can withdraw money whenever you want except in ELSS (equity-linked saving schemes) where the locking period is 3 years from the date of investment.