SIP calculator

Systematic Investment Plan or SIPs are a very popular method or way of investing money in Mutual Funds. SIPs refer to that mode of investment whereby a fixed amount is deducted from the investor’s bank account at specified interval of time, this may be weekly, monthly or quarterly as pe investor’s choice and convenience.

About SIP calculator:

SIP calculator is a tool that can give the investors or prospective investors an idea of how much return their SIP can generate after a certain period of time/years. This allows the investors to peep into the future to give them a glance of how much return their investment can reap. It thereby can help the investors to stay motivated throughout their period of investment.

While the calculator can help you with the prospective future returns on SIP, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator also does not consider the exit load and expense ratio.

How to use NISM’s SIP calculator?

The SIP Calculator ask the user to enter following three inputs: –

1. Monthly Investment – The amount one wish to invest every month for a stated tenure.
2. Expected rate of return (per annum) – The interest rate one can expected on invested amount during the tenure of the investment.
3. Time Period / Tenure (in Yrs) – The number of years for which user money will stay invested with Mutual Fund AMCs.

The SIP Calculator generates the following output for the user: –

• Total Invested– It let the user knows how much money s/he invested as principal amount during the investment period.
• Interest earned – It generates how much interest income added to investor portfolio on account of invested money.
• Maturity Value of Investment – It shows how much is the value of investor portfolio after the tenure of the investment. It includes the principal invested and interest earned thereon.

It calculates the interest amount based on compound interest. All the interest payments are considered as received at the end of the period. It ignores any exit load charge by AMCs in case of early withdrawal.