What is a SIP Calculator ?
A SIP calculator is an online tool designed to help investors estimate the future value of their investments based on various factors such as investment amount, tenure, and expected rate of return. By inputting these variables, individuals can gain insights into the potential growth of their investments over time. This knowledge empowers investors to make informed decisions and adjust their investment strategies accordingly.
You can use our Sip Calculator to project returns on your investment in NIBL Sahabhagita Fund, NIC Asia Dynamic Debt Fund, Nabil Flexi Cap Fund, Siddhartha Systematic Investment Scheme and NMB Saral Bachat Fund – E.
SIP Calculator
How Does our SIP Calculator Work ?
Our SIP Calculator uses the formula M = P × ({[1 + i]n – 1} / i) × (1 + i) to calculate the maturity amount under Systematic Investment Plan (SIP). The amount of profit is calculated as the difference between maturity amount and amount invested.
- M = Maturity Amount
- P = Amount invested at regular intervals.
- n =Number of SIP Payments Made.
- i = Periodic rate of interest rate
Using the above values, we calculate the possible returns from your SIP Investment. But, you have to keep in mind that this calculator is for illustration purposes only and does not represent actual return. Annual Rate of Return by mutual funds depends on various market conditions and may differ year by year.
Understanding the Benefits of SIP Calculator
Financial Planning: SIP calculators enable investors to set realistic financial goals by providing them with an estimate of the amount they can accumulate over a specific period. This knowledge helps individuals plan for various milestones like education, retirement, or purchasing a home.
Simplicity and Convenience: SIP calculators are user-friendly tools that require minimal effort to operate. They save investors from complex calculations and provide instant results, making them accessible to investors of all backgrounds.
Investment Comparison: With a SIP calculator, investors can compare the potential returns of different investment options before making a decision. This feature allows individuals to choose the investment avenue that aligns best with their risk appetite and financial goals.
Scenario Planning: SIP calculators empower investors to explore different investment scenarios by adjusting variables such as the investment amount, tenure, and expected rate of return. This flexibility enables individuals to make well-informed decisions based on their unique financial situations.
Realistic Expectations: By utilising SIP calculators, investors can set realistic expectations regarding their investments. This helps prevent over-optimistic predictions and ensures that individuals make informed decisions based on achievable returns.
How to Use SIP Calculator ?
Using a SIP calculator is a straightforward process. Here are the general steps involved:
Input the investment amount: Enter the initial amount you plan to invest or contribute periodically.
Set the investment tenure: Specify the duration of the investment, considering your financial goals and risk tolerance.
Determine the expected rate of return: Based on historical data or projected market performance, input an estimated rate of return for your investment.
Calculate the potential returns: Once you have inputted all the necessary information, the SIP calculator will provide an estimate of the future value of your investments.
Utilising SIP Calculators for Informed Investment Decisions:
Goal-Based Investment: SIP calculators help align investments with specific financial goals by estimating the required investment amount to achieve those goals within a given time frame.
Risk Assessment: By adjusting the rate of return in the calculator, investors can assess the impact of market fluctuations on their investment returns. This knowledge helps individuals evaluate their risk tolerance and make well-informed investment decisions.
Investment Planning: SIP calculators allow investors to explore various investment scenarios and identify the most suitable investment options based on their financial goals and risk appetite. This planning ensures that investors allocate their resources effectively and optimise their investment potential.
