SIP calculator is a free online SIP Calculator tool that calculates the return on your Systematic Investment Plan (SIP) for a certain amount of period. To get the SIP return for your investment, enter all of the values in the calculator input area, and hit the calculate button. This tool not only provides you SIP return value and maturity amount but also high-quality Graphs and Tables to better analyze your investments and financial goals.
SIP or Systematic Investment Plan is an investment scheme offered by mutual fund companies in India to the retail investor. It allows them to invest a small fixed amount step-by-step over a period of time instead of a one-time lump sums investment. The SIP strategy claims to lower down the overall investment risk by averaging out the cost of investment and adding the power of compounding to it.
SIP offered by mutual fund companies in India requires a pre-determined amount to be invested in the frequency of weekly, monthly, quarterly, or yearly. I decided to invest via SIP on a monthly basis then you are allowed to buy units on a fixed given date each month through post-dated cheques or through ECS ( Electronic Clearing Services ) auto-debit facility. With every amount invested, more units are allocated into the investor’s account each month based on the closing Net Asset Value (NAV) of the mutual fund on the date of realization. Thus the investor gets more units when the NAV is low and fewer units when the NAV is high. Which results in the lower average cost of total units held by the investors through the SIP scheme.
SIPs are specially meant for retail investors, who do not have time and resources to follow up the market on a daily basis. Its sole purpose is to save the investors from market volatility by leveraging upon the cost averaging. These funds are flexible too. Any investor is free to stop investing in such plan anytime and increase or decrease the monthly investment. Mutual Funds also offers tax benefits plans under ELSS (Equity Linked Savings Schemes) with a lock-in period of 3 years.
SIP doesn’t yield a good return in flat market or market which is constantly rising as the cost of averaging is not realized in such cases.
Benefits of SIP investment
Check out the best performing SIP mutual funds in India (2015)
|Fund Name||5 year SIP return(%)||Investment of 10000 monthly is now worth(lakh)|
|SBI Small & Mid Cap||36.78||14.57|
|Canara Robeco Emerging Equities||35.24||14.07|
|DSP Micro Cap||35.21||14.06|
|Minrae Asset Emerging Equities||34.40||13.80|
|As of 31st July 2015; Returns are annualized|
|Source: NJ Fundz via The Economic Times|
Note: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns.