What is an SIP Calculator?

The Systematic Investment Plan Calculator, or an SIP calculator, is a free online financial tool available on the Angel One website that helps you calculate your returns from SIP investments. You can use it to compare the returns from various SIP investment strategies.

A Mutual Fund SIP calculator helps you estimate the future value of your SIP investments. It takes into account various parameters, including the investment amount, i.e., the regular SIP contributions, the expected rate of return, and the investment tenure. By inputting these details, you can get a sense of how your investments may grow over time. While the final maturity amount of your SIP investment may differ due to various external factors, you can get an approximate understanding of the expected returns.

Once you have a clear idea of the expected returns and commitment required, you can then make a more informed decision about which SIP strategy is most viable for you.

How does SIP Calculator Work?

Our SIP calculator online takes three main factors into account:

• Amount of the initial investment (P)
• Frequency of the investment (n)
• Expected rate of return (r)

By inputting these values, the calculator determines the final invested amount and the estimated returns at the end of a specific period of time.

How Can an SIP Return Calculator Help You?

The advantages of using an SIP return calculator are many. Some of them are discussed below:

• Estimate required time and rate of return: Using this tool, you can estimate the rate of return required to reach your desired final amount. Additionally, you can also ascertain the time required for your investment to grow adequately.
• Choose the right SIP: The SIP calculator can swiftly give you multiple variables with which you can assess an SIP scheme. You can use the calculator to compare multiple schemes as per those variables and choose the SIP that is best for you.

How to Use the Angel One Systematic Investment Plan Calculator

The SIP Calculator on Angel One helps in calculating:

• SIP returns on maturity
• Monthly investment amount based on the target

Here are the steps to use the Angel One SIP calculator to calculate the SIP returns on maturity:

• Enter the amount you want to invest.
• Enter the duration for which you want to invest.
• Enter the expected rate of return.
• The calculator will instantly give you:
• The total value of your investment after the duration.
• The total invested amount.
• The estimated returns from the investment.

Here are the steps to use the Angel One SIP calculator to estimate the monthly investment amount:

• Enter the expected target amount, i.e., the returns you are expecting.
• Enter the duration for which you want to invest.
• Enter the expected rate of return.
• The calculator computes the values and gives how much you need to invest monthly to reach your investment target as per the duration and rate of return.

How Are SIP Investment Returns Calculated?

The SIP returns are calculated by entering the variable numbers mentioned above into the Systematic Investment Plan calculator.

The SIP calculator formula used is:

        A = P × ({([1 + r]^n) – 1} / r) × (1 + r)

                        

Where,

• A: Estimated Returns from the SIP
• P: Amount you invest in SIP
• r: Rate of Return you are expecting to get
• n: Number of total SIPs made

Example of Using SIP Calculator

Suppose you are a salaried individual earning a monthly income. Assume that you have decided to put in ₹5,000 per month as SIP, and after due diligence, you have chosen an SIP that gives an average of 12% return per year. Now, if you want to know the final amount this SIP will give you in 5 years:

• Choose the ‘Investment Amount’ tab on the SIP calculator.
• Enter ₹5,000 under ‘ENTER AMOUNT’.
• Enter the expected rate of return as 12%.
• Enter the duration as 5 years.

According to the SIP return on investment calculator, if you pay a monthly SIP amount of ₹5,000 for 5 years at a 12% rate of return, then the final amount you get will be ₹4,12,431.80 from the total invested amount of ₹3,00,000. If you are not satisfied with the end amount, you can decide whether to increase the investment period or find another SIP that gives a higher return.

Advantages of Using the Angel One SIP Calculator

• Enables financial planning: The online SIP calculator by Angel One can assist you in financial planning. You can get an idea of how much you need to invest regularly to reach your target amount. This will help you in planning your monthly budget.
• Compare and assess SIPs: Angel One’s SIP Calculator helps you compare and assess various SIP investment strategies based on the final amount, total invested amount and the expected return.
• Free to access: The online Systematic Investment Plan Calculator is completely free to use, no matter how many times you use it. You can access the Angel One SIP Calculator at any time from anywhere in the world.
• Provides instant results: The investment calculator gives you instantaneous results that are accurate.
• Easy to use: The SIP MF Calculator by Angel One is easy to use. All you need to do is input the basic details of your SIP and get results in less than a minute.

Systematic Investment Plans (SIPs) in India

SIPs have become a popular method for building wealth in India, especially among the salaried middle class. This is especially true for mutual fund SIPs, as here, retail investors can access the benefits of professional management of their investments at a low cost.

What is SIP?

An SIP, or Systematic Investment Plan, is a method of investing money into mutual funds or stocks. It allows you to invest a fixed amount at regular intervals over time rather than making a large, one-time investment.

SIPs offer investors an easy, convenient way to invest without having to worry about timing the market. You can just set up an account and benefit from rupee-cost averaging over time. SIPs are also known for their flexibility, as you can start by investing a small amount and eventually increase your contribution as your financial situation improves.

To calculate the potential returns of your investment via this mode, you can use a SIP calculator online.

Types of SIPs

• Regular SIPs: This is the standard SIP, where investors pay a fixed amount periodically. They enable regular transfer of funds from the bank to the SIP account. It helps average out the cost of the SIP units purchased.
• Flexible SIP: In this case, you can change the SIP amount as per your requirement. For instance, when the market is down and the assets are underpriced, you can buy more. Similarly, you can buy less when the assets are overpriced.
• Step-up SIP: Also known as Top-up SIP, this plan allows you to increase or step up the SIP amount at regular intervals. For example, you can start a monthly SIP with ₹10,000 and arrange to increase it by ₹1,000 every year.
• Perpetual SIP: You can stay invested in most SIPs for a predetermined period of time. However, for perpetual SIPs, you have to only mention the start date and not the end date.
• Trigger SIP: In this type of SIP, you can set a trigger for an SIP. The trigger could be an event, like a sudden market dip or a favourable market condition.
• Multi SIP: This scheme allows you to invest in multiple funds of a fund house via a single SIP. For example, if you invest ₹30,000 monthly in a multi-SIP, you can split the amount into five schemes, buying units of ₹6,000 each.

Benefits of SIPs

• The money invested in the SIP compounds over the years, generating a high return eventually.
• Unlike investing in stocks yourself, you do not have to worry about investment strategies. The funds will be allotted by capable professionals who understand financial markets well.
• You can garner high returns without having to make a huge investment in one go.
• It encourages financial discipline as your SIP commitment nudges you to be more attentive toward your spending.
• Investing in certain SIPs like ELSS funds can help you save thousands of rupees in taxes.

How to Start SIP Investment?

• Go to the Home page and click on Mutual Funds.
• Choose the Fund that you want to invest in from the section titled ‘Discover Mutual Funds’. You can start your search by clicking on ‘EXPLORE ALL FUNDS’.
• Once you have gone through the details of a mutual fund and chosen it, click on ‘INVEST’.
• Choose the SIP option and enter the monthly amount and date.
• Choose the mode of payment e.g., UPI or Net Banking.