SIP Calculator

SIP Calculator – Systematic Investment Plan Calculator

Prospective investors often assume that SIPs and mutual funds are the same. However, SIPs are simply a method of investing in mutual funds — the other being lump sum investment. A SIP calculator is a smart tool that helps you estimate the returns you may earn when you invest regularly in mutual funds through SIP.

Systematic Investment Plan (SIP) is a disciplined approach where you invest a fixed sum of money in mutual funds at regular intervals. Depending on your goals, SIPs allow you to invest weekly, quarterly, or monthly.

What is a SIP Calculator?

A SIP calculator is an easy-to-use tool that allows individuals to get an estimate of the returns from their mutual fund investments through SIP. With SIPs becoming one of the most popular investment options, especially among young investors, this calculator helps you plan and project your potential wealth growth.

The SIP calculator from Anupam Wealth gives potential investors an estimate of their mutual fund investment growth. Please note that the actual returns may vary depending on market conditions, fund performance, exit load, and expense ratio, which are not considered in this calculation.

This calculator provides a quick estimate of your wealth gain and expected returns from monthly SIP investments, giving you a fair picture of the potential maturity amount.

How can a SIP return calculator help you

Compared to lump sum investments, SIPs are considered a more disciplined and rewarding way to build wealth over time. A SIP encourages regular savings and long-term financial planning.

An online SIP calculator, like the one offered by Anupam Wealth, is beneficial because it shows you the estimated returns you may earn after your investment tenure.

Key benefits of the SIP calculator:

• Helps you decide the right amount to invest.
• Shows the total amount you will invest over time.
• Provides an estimated value of returns.
• Assists in financial planning by projecting potential wealth creation.

How do SIP calculators work?

A SIP calculator works using the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

Where:

• M = maturity amount
• P = amount invested at regular intervals
• n = number of payments made
• i = periodic (monthly) rate of return

Example:

Suppose you invest ₹1,000 per month for 12 months at an annual return rate of 12%.

The monthly return is not a simple division of 12% ÷ 12 = 1%. Instead, returns are compounded. The correct way to calculate monthly return is:

Monthly Return = {(1 + Annual Return)^(1/12)} – 1

So, for a 12% annual return, the effective monthly return is around 0.95%, not 1%.

Therefore,
M = 1,000 × ({[1 + 0.0095]^12 – 1} / 0.0095) × (1 + 0.0095)
≈ ₹12,766 after 1 year.

This demonstrates how compounding makes a significant difference in SIP returns.

Please note: SIP returns are market-linked and may vary as per market performance.

How to use Anupam Wealth’s SIP Calculator?

Using the SIP calculator on Anupam Wealth is quick and simple:

1. Enter your monthly investment amount.
2. Select the investment tenure (in years).
3. Input the expected annual rate of return.

Once you provide the inputs, the calculator instantly shows you:

• The total invested amount
• Estimated wealth gain (returns)
• Total maturity value

Advantages of Anupam Wealth’s SIP Calculator

The SIP calculator from Anupam Wealth is designed to help investors make informed decisions. Some key advantages include:

• Smart Investment Planning: Plan your investments based on your financial goals and time horizon.
• Clarity on Returns: Get a clear estimate of the total value of investments at the end of your SIP tenure.
• Time-Saving & Accurate: Avoid manual calculations with instant and accurate results.
• Financial Discipline: Ensure your portfolio is aligned with your wealth creation goals.

With Anupam Wealth’s SIP Calculator, you can plan your financial journey with confidence, stay disciplined, and work towards long-term wealth creation.