SIP Calculator

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SIP calculator: All you need to know

Stay on top of your investment decisions with the help of this amazing tool

What is an SIP calculator?

A simple online tool, an SIP calculator, helps investors calculate the returns of their SIP investments on the basis of the estimated return rate and their investment value in the future after a fixed number of years. However, the actual returns of a mutual fund scheme may depend on various other factors which the calculator may not consider. For example, SIP calculators do not give any insights into the expense ratio and exit load (if any).So, to put it in a nutshell, with this calculator, you can calculate expected returns for your SIP investments.

How does the SIP calculator work?

Using this calculator is not rocket science. Rather, it is a matter of a few clicks. All you need to do is enter the values at the necessary places, and then this calculator will give you an estimate of your future investments. Based on the formula of compound interest, the SIP calculator is developed. This compounded interest plays a crucial role in powering your returns.

Why should you use an SIP calculator?

If the views of mutual fund experts are taken into consideration, SIPs work better than lump-sum investments when it comes to creating wealth. Besides, it instils a habit of saving. An SIP calculator will enable you to get an idea of your investment value at the end of the tenure of your investments. Some common benefits of this calculator are as follows:

  • Help you decide the amount you should invest in through the SIP investment mode

  • Apprise you of the entire amount you have invested during the specific investment period

  • Provide you with an estimate of the corpus you will get at the end of your investment period

How to use Value Research's SIP calculator?

If you want to know how much your monthly SIP investments will grow over a period of time, Value Research’s SIP Calculator will be a big help to you. Only a few clicks will tell you how much amount you will be able to accumulate during a certain period of your investments.

All you need to do is mention the name of your fund, the amount of your monthly SIP, and your investment duration, and that's it! You will get the worth of your investments during that time within a few seconds.

  1. Click on https://www.valueresearchonline.com/calculators/ and find the SIP calculator tool under the 'Calculators' section.

    sip-calculator in tools page
    Value Research - Tools & Calculators
  2. Click on the SIP calculator tool icon. Then, type your monthly instalment amount, any lump sum amount you may want to invest, and your investment duration.

    sip-calculator
    Value Research - SIP Calculator

What are the benefits of Value Research's SIP calculator?

Mutual funds are market-linked instruments, and hence, they do not provide any guaranteed returns. Therefore, it is difficult for most investors to know the exact SIP amount and the investment duration that will enable them to achieve their financial goals. With Value Research's SIP calculator, investors can address this problem and align their SIP investments and tenure with their future goals;

Besides, our calculator provides a host of benefits to investors. These are as follows:

  • Know the future value of your investments: With Value Research's SIP calculator, getting an estimate of the future value of your investments is a matter of a few clicks. Provide correct inputs to our calculator and get accurate results immediately.

  • User-friendliness: Anyone can use our calculator with a few clicks. The user guideline mentioned on the website will help you navigate without any hassle.

  • Take the right investment decisions: Your investment goals can be different, and the corpus required for every goal will obviously vary. With the calculator, know the amount required for your individual goals.

You do not need to be a techie or maths expert to use the SIP calculator of Value Research. Also, you do not need to pay us anything to use our calculator. Every time you can use it for free!

How does an SIP calculator help in investment decisions?

Your financial goals are important to you, and you need to make sure that your SIP investments can meet those goals. With our SIP calculator, you will get a better idea of the amount that you will get depending on your investment plan.

Based on the result, you can easily decide whether or not your investments are aligned with your future goals;

Do SIP calculators consider yearly increases in SIPs?

If we go by experts’ advice, one should increase one’s SIP investment amount every year. At Value Research, we always support this. However, that feature is a part of another tool we have developed. This tool is called the ‘Mutual Fund Calculator’.
The ‘Increase investment’ feature in our calculator will enable you to know how much corpus you will be able to accumulate if you increase your SIP investments every year.

Why do investors need to submit the investment tenure of their SIP investments in Value Research's SIP calculator?

Value Research's SIP calculator asks for the duration of your SIP investments in years. Then, the calculator will show the worth of your SIP investments at the end of your investment tenure.

FAQs on the SIP calculator

You might wonder why this question is important. Many people may get confused between a mutual fund and an SIP, as they presume that both words are synonymous. However, it is not true. Mutual funds are an investment product, while systematic investment plans (SIPs) are a way to invest in mutual funds.

When it comes to mutual funds, financial experts always advocate opting for the SIP mode instead of the lump sum. With the SIP, one has the option to invest small amounts. It reduces risks through rupee-cost averaging. Also, it instils the discipline of savings.

At present, six types of SIPs are the most common. They are as follows:

  1. Regular SIP: In this mode, you can invest a certain amount at fixed intervals. The frequency of your SIP can be monthly, quarterly or half-yearly.
  2. Perpetual SIP: In this investment mode, your SIP investments will continue without any end date or specific tenure.
  3. Flexible SIP: With this mode, you can tweak the amount you want to invest through your SIP investments.
  4. Top-up SIP: If you opt for top-up SIP, you can enhance your investment amount after a certain period.
  5. Trigger SIP: In the case of a trigger SIP, your SIP investment will depend on some trigger circumstances. For example, if your scheme's NAV falls to a specific level, then it should be your trigger circumstance to increase the SIP amount.
  6. Multi SIP: Suppose you want to invest in several mutual fund schemes of a single fund house. Then, this SIP investment option will help you make the investment through one instrument.

Mostly, returns of SIP investments are taxable. Nevertheless, if you do SIP investments in ELSS mutual funds, then you will enjoy tax deductions under Section 80C of the Income Tax Act.

There is no specific limit on your investment amount through the SIP investment mode. You can even start your investments with Rs 500. However, if you want to invest through the SIP mode for any specific goal, our calculator will help you decide the exact SIP amount that you need to invest in and the tenure of your investments.

SIP investments are made for all. Experts always suggest that investors should opt for the SIP mode while investing in market-linked products, especially in hybrid and equity funds. As we all know, the market is volatile. Therefore, if you opt for the SIP mode while investing in the market, it will reduce the volatility over a period of time.

Since the returns of your investments through the SIP route are market-linked, the returns of your investments will depend on the performance of your mutual fund scheme. You can visit the website of Value Research to choose a fund that goes with your investment time frame and goal. And using our calculator, you can get an estimate of your returns.

When it comes to selecting a mutual fund for your SIP investments, you should take care of a number of factors. These include the investment objective of the fund, its expense ratio, the tract record of the fund manager, and most importantly, the performance of the fund across various cycles.

Always remember that the fund you are planning to invest in should help you meet your investment goals and should maintain a track record of delivering returns. Also, if your fund's expense ratio is low, then it will increase your total returns at the end of your investment tenure.

As long as you want, you can continue with your SIP investments. There is no maximum period attached to this investment mode. And if you opt for the perpetual SIP mode, as we discussed above, your investments can continue indefinitely.

As we have discussed earlier, if you opt for flexible systematic investment plans, you can modify your SIP investment amount. But if you opt for other types of SIP, as discussed above and start your SIP investments, then it will not be possible for you to modify the amount during the specific investment period. Having said that, based on your investment goals, you can always stop or pause your SIP investments.

Yes, you can invest in debt mutual funds through the SIP mode. Although people tend to go for the SIP investment mode while investing in equity and hybrid funds, one can also start SIP investments in debt funds. Although debt mutual funds are not as volatile as other categories, they can face situations like falling or rising interest rates. Therefore, SIP investments in debt funds are very much possible.

Yes, it is very much possible to renew an SIP investment automatically. Also, AMCs provide investors with the option to cancel the auto-renew feature available with these AMCs.

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