What is SIP?
SIP is a Systematic Investment Plan that allows the investors to invest their money periodically. One can invest every month or every week. It is a type of mutual fund that does not demand a lumpsum deposit. A fixed amount of money is deducted from the investor’s bank account on a fixed date every month. SIP and SIP calculator are gaining immense popularity with time. Now, everyone can invest their money in a mutual fund because the minimum investment is Rs. 500 with a Systematic Investment Plan.
Benefits of SIP
There are numerous benefits of SIP. Some of them are mentioned below:
- It brings discipline to your financial investments.
- SIP has various tax benefits.
- Applying for SIP is very easy and accessible.
- Systematic Investment Plan is very pocket-friendly.
- SIP brings versatility in your mutual fund portfolio.
- The power of compounding generates great returns.
- SIP is good for long term goals
- They are risk-free. The fluctuating market does not affect SIP returns.
- SIP gives good returns compared to other mutual funds.
What is a Systematic Investment Plan calculator?
Systematic Investment Plan calculator helps you to calculate the amount needed to start an investment plan and the amount you get at the end of an investment plan. You can also modify the values to check the profits of your investment. Everyone can use a SIP calculator online and calculate their financial investments with SIP.
How to use a Systematic Investment Plan calculator?
The usage of a Systematic Investment Plan calculator is easy. The process is mentioned below:
A SIP calculator can be used for two purposes.
- First, you are investing a fixed amount of money and want to check the returns.
- Secondly, you have a set goal, now you want to check how much money you have to invest each month to reach that financial goal.
- Checking returns
- Go to the Systematic Investment Plan calculator.
- Select the investing option.
- Put the amount you want to invest monthly.
- Enter the period of investment that you have in mind.
- Put the expected rate of return.
The calculator will show you the approximate returns of your investment plan and the number of capital gains.
- Checking the required investment amount
- Go to the SIP calculator.
- Enter the amount that you have set as your goal.
- Enter the time within which you want to reach your goal.
- Enter the expected return rate.
SIP calculator will tell you how much money you have to invest monthly to reach your goal.
Benefits of Systematic Investment Plan calculator
- It helps us to determine the amount of investment.
- It calculates the total amount of investment.
- It gives an estimated return value.
- You can check how much profit you can gain if you make some alterations in the investment plan.
Investing in a Systematic Investment Plan can be a great step to reach your financial goals. Now with SIP and SIP calculator, you can keep track of your SIP investment and enjoy great returns.