SIP Calculator
Calculate your wealth growth through Systematic Investment Plan
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What is SIP?
A Systematic Investment Plan (SIP) is a smart financial planning tool that helps you invest a fixed amount regularly in mutual funds. Instead of investing a lump sum, SIP allows you to invest small amounts periodically (monthly, quarterly, etc.).
Benefits of SIP:
- Disciplined investing through regular contributions
- Rupee cost averaging - buy more units when prices are low
- Power of compounding over long term
- Flexibility to increase or decrease investment amount
- No need to time the market
SIP Formula:
FV = P × [((1 + r)^n - 1) / r] × (1 + r)
Where: FV = Future Value, P = Monthly Investment, r = Monthly Return Rate, n = Number of Months
Frequently Asked Questions
What is SIP?▼
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps in building wealth through disciplined investing.
How is SIP return calculated?▼
SIP returns are calculated using the compound interest formula, considering monthly investments, expected annual return rate, and investment period.
Is SIP better than lumpsum?▼
SIP is better for regular investors as it averages out market volatility and requires smaller regular investments. Lumpsum is suitable when you have a large amount to invest.
What is a good SIP return rate?▼
Historically, equity mutual funds have given 12-15% returns over long periods. However, past performance does not guarantee future results.