Free SIP Calculator for Mutual Fund Investment
Estimate the future value of your investments with our simple and powerful SIP calculator.
Understanding Your SIP Investment
A Systematic Investment Plan (SIP) is a powerful way to build wealth over the long term. By investing a fixed amount regularly, you instill a habit of disciplined saving. More importantly, you benefit from a market phenomenon called 'rupee cost averaging.' This means you buy more units when the market is low and fewer units when the market is high, potentially lowering your average cost per unit over time.
How to Use This SIP Calculator
- Monthly Investment: Use the slider to set the amount you plan to invest each month.
- Investment Period: Select the total number of years you wish to stay invested.
- Expected Return Rate: Adjust the slider to the annual rate of return you expect from your mutual fund.
The calculator will instantly show you the total amount you've invested, your estimated returns, the future value of your investment, and a chart visualizing your wealth growth.
Frequently Asked Questions (FAQ)
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals (usually monthly). It helps in disciplined investing and benefits from rupee cost averaging, which can lower the average cost of your investment over time.
How accurate is this SIP calculator?
This SIP calculator provides an estimate of the future value of your investment based on the inputs you provide (monthly investment, tenure, and expected return rate). The actual returns from a mutual fund can vary based on market performance. The calculator is a tool for financial planning and projection, not a guarantee of returns.
What is a realistic expected return rate for SIPs in India?
The expected return rate for SIPs depends on the type of mutual fund. Historically, equity mutual funds have delivered returns in the range of 12-15% per annum over the long term. However, this is not guaranteed and past performance is not indicative of future results. It's advisable to research funds and consider a conservative estimate for planning.
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