SIP CALCULATOR

Investment Amount(Rs.): *

Investment Type: *

Investment Period (Years) : *

Expected Annual Returns (%) *

Adjust for Inflation ?

Expected Amount: * Rs.

Amount Invested: * Rs.

Profit Earned: * Rs.

Projected SIP returns for various time durations. [ @rate ]
Duration	SIP Amount (₹)	Future Value (₹)

What Are SIPs(Systematic Investment Plans)?

Systematic Investment Plans, or SIPs, are a well-known way to put money into mutual funds. SIPs encourage wise money management and help generate capital for the future. With SIPs, you can begin with a small number and build it up over time in a planned and organized way. We’ll take a quick look at SIPs, what they are, how do they work, examples to understand, it’s types, the perks of starting and managing one.

What Is A SIP Calculator?

A SIP calculator is a basic tool that people can use to estimate the returns on their SIP investments in mutual funds. Mutual fund SIP investments have recently emerged as one of the most well-liked investment choices for millennials.

To help prospective investors estimate their mutual fund investments, several calculators for mutual fund sip are available. However, a mutual fund scheme’s real returns vary based on several factors. The exit load and expense ratio (if any) are not explained by the SIP calculator.

The wealth growth and anticipated returns for your monthly SIP investment will be computed by this calculator. Based on an estimated annual return rate, you receive a ballpark estimate of the maturity amount for each of your monthly SIP investments.

Even though you can always locate an online SIP calculator to conduct the calculations for you, it’s always a good idea to know where these figures originate from so you can feel more sure about your investing approach.

The SIP formula used by SIP calculators is as follows:

FV is equal to P x {[(1 + r)n – 1] ÷ r} 1 + r

Where,

Variable	Description
FV	Future value of investment
P	Principal contributions each month
r	Expected rate of return (per month)
n	Number of contributions towards the principal

Example

Let’s understand how a SIP works with the help of a simple example,

Let’s say, you are investing ₹1,000 monthly at a 12% periodic rate of interest.
Each month, the rate of return would be 12%/12 = 1/100 = 0.01.
Therefore, you will get about ₹12,809 in a year.

*But keep in mind that the interest rate on mutual funds varies depending on the state of the market. It might go up or down, which would affect the projected returns.

It’s crucial to be aware of a SIP calculator’s limits even though it offers insightful information. The primary disadvantage is that a calculator assumes a constant rate of return, which might not accurately represent the state of the market. The returns might be strongly impacted by changes in the market.

When everything is taken into account, a SIP calculator usually gives investors precise forecasts. Try the SIP Calculator on sgx-nifty.org to calculate your estimated returns!

How to use sgx nifty SIP calculator?

To get started, simply input the amount you wish to invest each month (the amount you started the SIP with), the number of years you want to stay invested, and the projected rate of return.

The calculator will display the approximate amount you can withdraw at the end of your investment term as soon as you enter the value.

Types of SIPs

SIP	Main Feature	Suitability	Risk & Benefits
Equity SIP	Invests primarily in equity or stocks of companies.Has the potential for higher returns but is also subject to market volatility.	For investors with: -A higher risk appetite -A long-term investment horizon (typically five years or more) -A goal for wealth creation	Offers the potential for capital appreciation and higher returns over the long term.Also, exposed to market risks and may experience short-term fluctuations.
Debt SIP	Invests in fixed income instruments such as government securities, corporate bonds and money market instruments.Aims for a stable income and lower volatility.	For conservative investors seeking: -A regular income -Capital preservation -Lower risk -A shorter investment horizon	Provides stable returns.Acts as a hedge against market volatility.May offer relatively lower returns compared to equity SIPs.
Hybrid SIP	Invests in a combination of equity and debt instruments.	For investors seeking: -Moderate risk exposure -A regular income -A medium to long-term investment horizon.	Offers diversification benefits.Has the potential capital for appreciation, and income generation.Has associated risks in the equity component’s market fluctuations.
ELSS (Equity-Linked Saving Scheme)	Are tax-saving SIPs that invest mostly in equities.Offer tax benefits under Section 80C of the Income Tax Act.	For investors looking to: -Save taxes while aiming for long-term wealth creation -Have a medium to long-term time horizon for their investment goals	Provides tax benefits.Has the potential for higher returns and the advantage of compounding.Also subject to market risks and short-term fluctuations.
Sectoral SIP	Focuses on specific sectors such as banking, technology, healthcare, and more.	For investors with: -A high-risk appetite -Specific sectoral insights -A long-term investment horizon	Offers an opportunity to capitalise on the growth of specific sectors.Also exposed to concentrated risks associated with the chosen sector.
Index SIP	Replicates a specific market index such as Nifty 50 or the Sensex.Aims to deliver returns like the index they track.	For investors seeking: -Market returns and broad market exposure. -Lower costs -No requirements for active fund management.	Provides diversification.Has lower expense ratios.Benchmark-like returns.Also subject to market risks and cannot outperform the index they track.
Gold SIP	Invests in gold ETFs (Exchange Traded Funds) or gold mutual funds, giving investors the opportunity to accumulate gold over time.	For investors looking to: -Diversify their portfolio. -Hedge against inflation. -Invest in gold as an asset class.	Offers a convenient and cost-effective way to invest in gold.Provides liquidity and eliminates the need for physical storage.Impacted by the fact that gold prices can be volatile in the short term.
International SIP	Invest in foreign securities, giving investors the opportunity to participate in global markets and economies.	For investors seeking: -International diversification and exposure to global trends. -Long-term growth opportunities.	Provides access to international markets, sectors, and currencies.Potential for higher returns but is also exposed to currency risk and global market volatility.

Investors should understand the many SIP options accessible in India in order to match their investing decisions to their risk tolerance, investment horizon, and financial objectives. Prior to making any investment selections, it is essential to assess the features, suitability, advantages, and dangers connected with each type of SIP.

Benefits of an SIP

These additional advantages of SIPs explain why so many investors choose them as their preferred investing option.

- Disciplined Investment: One of the main advantages of SIPs is that they promote disciplined and regular investing. SIP investors invest a set amount monthly. This methodical method encourages people to save and invest a certain amount of their income. Since SIPs uses “average rupees”, investors don’t need to time the market.

- Rupee Cost Averaging: SIPs use this method to reduce market volatility. The fixed investment amount buys more units during market downturns and fewer during market upturns. This technique reduces short-term market swings, smoothing the investing path.

- Flexibility and convenience: SIPs offer investment quantities and time-limit flexibility. Financially capable investors can determine their investment amount. Changes in financial circumstances allow investors to adjust their investment quantities. Most Indian mutual funds allow minor SIPs. This feature makes SIPs accessible to many. Thus, SIPs allow investors to match their investments with their financial goals.

- Compounding Formula: The force of compounding enables SIPs to help investors build wealth over time. By investing in mutual funds through SIPs, people boost their returns. Compounding increases returns on investment and wealth generation. Early investment and longer investment time allow compounding to work. Initial investment increased exponentially.

- Helps to Diverse Financial Portfolio: Experienced professionals manage a balanced portfolio for investors. Multi-investor mutual funds invest in stock, debt, and hybrid assets. This diversification lowers stock and asset investment risk. Investors profit from fund managers’ research, market analysis, and investment selections.

A Guide On How To Start SIP

Thinking about setting up an SIP? Here’s how.

After setting financial goals, determine your investment’s purpose. It could be for long-term wealth growth, retirement, education, or another purpose. Knowing your goals can help you choose SIP mutual funds. Choosing the optimal SIP asset allocation requires knowing your risk appetite. Consider your age, income, financial obligations, and investment experience to determine your risk appetite. Select an equity, debt, or hybrid fund asset allocation based on your risk profile to match your investments.

After extensive and independent study, choose mutual funds that meet your investment goals.

You can now choose an investment platform. You can explore the Blog section of our website to determine best investment platform. Choose from many mutual funds to fit your investment needs. Starting a SIP is easy. Step into SIP with confidence. To keep on pace with your financial goals, examine and rebalance your assets periodically.

Tax Implications You Should Need To Know

Even though SIPs offer a good way to potentially make money, it is also very important to know how they affect your taxes. The way a SIP investment is taxed depends on the type of mutual fund it is put into.

- Long-term capital gains (LTCG),

- short-term capital gains (STCG),

- equity linked savings schemes (ELSS) are eligible for a deduction of up to Rs. 1.5 lakh every fiscal year.

It is very important to keep good records of SIP purchases, like investment statements, dividend statements, and capital gains statements. These records will help you figure out how much income and gains you have when you file your taxes. Tax rules can change. If you want personalized advice based on your tax bracket and investments, you should talk to a tax advisor or financial manager. Knowing how SIP investments affect your taxes is important for tax planning and getting the most out of your assets.

Five Common Mistakes You Should Be Carefull Of

There are many good things about SIPs, but it’s important to know about the myths that could get in the way of your investing journey. Here are five mistakes that people often make when they invest in a SIP in India.

- Not planning your financial goals: If you don’t have clear goals, it’s hard to figure out the right amount to invest, how long to invest for, and how to divide up your assets for your SIP.

- Lack of study: Making bad investment choices can happen if you don’t do thorough, independent research before you invest. Not doing enough study can lead to bad investments.

- Trying to time the market: Through rupee cost average, SIPs are meant to lessen the effect of market volatility. It’s hard to try to time the market by looking at short-term changes. It might be worth it to keep your eye on the long run.

- Investments that aren’t being watched: Setting an amount to spend and then forgetting about it is not the same thing as a SIP. By reviewing your investment regularly, you can keep an eye on it and get the most out of your SIP.

- Ignoring advice from professionals: It is very important to get skilled help with your SIP. Financial advisors can help you make smart business decisions that help you reach your goals. Their knowledge can help you get the most money back.

Investors can get more out of SIP if they don’t make these usual mistakes. You should be patient and think about the long run. This will help your SIP work better for you. Remember that there are market risks when you buy in mutual funds. It is important to do a thorough, independent study. Also, talk to a professional before you decide to spend any money.

FAQs About SIP

How much can I invest in a SIP?

There is no limit to the amount you can invest in a SIP. Minimum amount is even as low as 100 rupees.

Can I modify my SIP amount?

Yes, you can use the SIP investment tool at any time to see how much money you’ve made and to change the amount of your SIP.

Can I renew a SIP?

It is possible to have a SIP automatically renewed. You can also turn off this auto-renewal tool from the company.

Can I pause my investments in an SIP?

Yes, mutual fund companies also let you put your SIP investments on hold for a certain amount of time.

Are SIPs similar to mutual funds?

SIP is often confused with mutual funds or seen as something different from them. SIP is just a way to invest; it’s not a fund, a plan, or a stock. It’s a way to put money on a regular basis in any fund or scheme you choose.