What is the purpose of the SIP calculator? If you know, then it is good for you. If you do not know, then stick to this article to get the complete information about it. The SIP calculator is used to analyse the likely returns from mutual funds within the given tenure and amount of SIP and plan your investment options.
In today’s world, investing through SIP is the preferred mode of investment for investors in India.
If you like to invest via SIP, you must use the SIP calculator to plan your investment. In this article, we will briefly tell you about the SIP calculations, where we first tell you about the meaning of the SIP calculator and how to use it.
What do you mean by the SIP calculator?
A SIP calculator is a tool you can use to determine the sort of returns you might receive on the Mutual funds‘ investment created through the SIP method. A SIP calculator can estimate the anticipated returns from the SIPs as it depends on the expected annual return rate. Make sure to keep in mind the real returns you receive will vary according to the various factors.
At some point, a SIP calculator does not have the exit load on the account or the expense ratio with the fund management fee, along with the same additional fees.
A way to use the SIP calculator
If you want to use the Sip calculator, then you must know the right way that how to use it correctly. Follow the given points in which you must fill in certain details to use the SIP calculator.
- Enter the fixed time period for which you want to continue your investment
- Enter the fixed amount you will deposit via the SIP
- The maturity time of the SIP
- The supposed rate of return on the SIP
Once you put the above values and give the input, then the SIP calculator will give the output the estimated amount you will gain at the end time of the investment.
Benefits of using the SIP calculator
- It is assumed that no external factors affect the return on maturity.
- A SIP calculator can offer you estimate returns of the magnitude you will receive the SIP investment.
- There is the no chance of any human error occurring
- A SIP calculator provides a much more informed investment decision from the different forecasted investment plans and compares the results
- With the use of the SIP calculator, you can also change the investment or the tenure amount to see the impacts of the maximized return on the SIP
This article tells you about the SIP calculator, its uses, and its benefits. You will better learn how to use the SIP calculator if you read the complete article. It is concluded that the SIP calculator will give you an estimated amount of the profits made on the possible investments or put your upcoming earnings as the benefits.