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SIP Calculation works by the values entered by the users. The users are to enter their amount of investment, frequency of investment, duration of investment, and therefore the expected returns.
The SIP Calculation is meant supported the interest formula. The compounded interest powers the open-end fund returns.
SIP means systematic investment plan which allows you to invest a fixed amount of money periodically in a selected mutual fund.
What is the meaning of SIP?
For example, if you start a monthly investment in SIP of ₹5,000 in a mutual fund, The same amount will automatically be debited from your bank account and invested in that mutual fund every month on the pre-decided date. This makes a Systematic Investment Plan an automated way to invest.
What is SIP Calculation?
A Systematic Investment Plan calculator is a program, which allows individuals to understand and estimate the return on their investments in a mutual fund made through SIP. Investing in SIPs has become one of the most popular investment options for millennial these days.
SIP calculators are designed to give a clear understanding of potential investors on their mutual fund investments. However, the real returns offered by a mutual fund scheme varies depending on market conditions and other various factors.
As exit load differs from SIP to SIP so we do not calculate Exit load in it
How does SIP Calculation work?
SIP calculator works with the values entered by the users. The users need to enter their amount of frequency of investment, investment, duration of investment, and the expected returns.
The SIP Calculation is a Compound interest formula used in designing. The compounded interest powers the mutual fund returns. Comparisons of the returns are shown in SIP Calculator by mutual funds with fixed deposits.
How to use Systematic investment plan calculator?
Usage of systematic investment plan calculator is very simple. To calculate the estimation of the return on mutual fund investments made in SIPs, the users need to do the following:
- Decide the frequency of your SIP
- Understand the need and enter the amount you would like to invest in each SIP
- Plan and Enter the duration of your SIP you want to invest
- Enter the expected rate of return
The SIP calculator projects the amount accumulated at the end of your SIP tenure. There will be a comparison of the sum accumulated through your mutual fund investment with fixed deposits.
Advantages of SIP Calculation
The advantages of using SIP Calculation as follows :
- SIP calculator allows individuals to get a projection of the amount on your mutual fund investment would accumulate at the end of their SIP tenure
- With the projection in hand, individuals are helped in planning better finances
- Estimation of their investment value allows individuals to choose the right mutual fund scheme