SIP Calculator
Calculate the returns of your mutual fund SIP investment in just a few clicks.
Monthly SIP Amount
₹
SIP Period
years
Expected Return Rate (p.a)
%
Invested amount
₹ 30,00,000
Estimated returns
₹ 39,66,432
Total value
₹ 69,66,432
Disclaimer: Past performance is not an indicator of future returns
What is a SIP Calculator?
The SIP calculator is a simple yet effective tool that helps you estimate the future value of your SIP investments. You can quickly assess how your investments may grow by entering details like your investment amount, expected returns, and tenure. It's your go-to tool for making informed and confident financial decisions!
How to Start an SIP Investment
Starting an SIP investment is simple and can be done online. Follow these steps to get started:
- Select a reliable platform for your SIP investment.
- Create an account if you are a new user or log in to your existing account.
- Browse through the available mutual fund schemes and choose the one that aligns with your goals.
- Click on the chosen mutual fund and select the SIP option.
- Enter the SIP amount, payment date, and duration of investment.
- Opt for your preferred payment method, such as UPI, net banking, or auto-debit.
- Review the details and click ‘Confirm’ or ‘Start SIP’ to initiate the process.
These steps ensure a hassle-free start to your SIP investment journey, encouraging regular investments and financial discipline.
What is a SIP?
A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds. It allows you to contribute a fixed amount at regular intervals (daily, weekly, monthly, or quarterly), making it easier to build your corpus over time without needing a large upfront investment.
SIPs are beginner-friendly, flexible, and stress-free. You can start with as little as ₹100 per month and gradually increase your contributions as your financial capacity grows. This approach encourages consistent investing and helps you benefit from rupee-cost averaging, reducing the impact of market fluctuations.
SIPs simplify your journey towards achieving long-term financial goals conveniently and effectively.
This is the common SIP, where you invest a fixed amount regularly. It ensures disciplined investing and helps you benefit from rupee-cost averaging over time.
With a flexible SIP, you control the amount you invest. Adjust it up or down based on your financial situation or market conditions, offering adaptability to your investment journey.
Also called Step-up SIP, this plan lets you increase your investment amount periodically. Individuals expecting salary increments or bonuses may choose to opt for this SIP.
Trigger SIPs automate your investments based on specific market conditions or events, such as a dip in the market or a particular NAV value. It is a great choice for investors who want to align their investments with strategic opportunities.
This type of SIP continues indefinitely, making it a good choice for long-term investors who prefer ongoing contributions without worrying about setting an end date.
Multi-SIPs allow you to diversify your investments across multiple funds through a single SIP, ensuring a balanced and well-spread portfolio with minimal effort.
Invest in ELSS (Equity Linked Savings Scheme) funds through this SIP type to enjoy tax benefits under Section 80C.
SIP Vs Lump Sum
| Parameter | SIP | Lump Sum |
|---|---|---|
Investment Amount | Invest in small amounts regularly, typically monthly. | One-time large investment upfront. |
Market Timing | Spreads investments over time, reducing market timing risks. | The entire amount is subject to market timing. |
Cost Averaging | Benefits from rupee cost averaging, lowering average cost per unit. | No cost averaging; market timing plays a key role. |
Flexibility | Flexible to start with smaller amounts and can adjust over time. | Needs a significant amount at the beginning. |
Time Horizon | Suitable for long-term goals. | Ideal for short-term goals if the market is favourable. |
Mistakes to Avoid in a Systematic Investment Plan
Avoid these common mistakes to make the most of your SIP investments:
- Procrastination: Starting late reduces the power of compounding. Starting earlier provides a longer timeframe for your investments.
- Stopping Midway: SIPs yield results over the long term. Avoid halting contributions prematurely.
- Poor Fund Selection: Align your fund with your goals, risk tolerance, and performance history.
- Avoiding Equity: For long-term SIPs, equity funds offer higher growth potential despite risks.
- Choosing Dividend Plans: Growth plans reinvest returns, boosting your portfolio's value.
- Lack of Discipline: Stay consistent, even during market dips, to benefit from rupee-cost averaging.
- Relying on AMC Reputation: Don’t choose funds based solely on brand name; evaluate performance.
- Over-Investing in Sectoral Funds: Stick to diversified funds to reduce concentration risks.
- Timing the Market: SIPs thrive on consistency, not market timing.
- Unrealistic SIP Amounts: Choose an affordable amount to ensure consistent contributions.
- Ignoring Reviews: Regularly monitor your SIP's performance and make necessary adjustments.
- Skipping Goal-Based Investing: Link SIPs to clear financial goals for better commitment.
How to Place SIP Order On Kotak Neo App | Mutual Funds SIP
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FAQs on SIP Calculator
What is SIP and how does it work?
A Systematic Investment Plan (SIP) lets you invest a fixed amount regularly. The amount is auto-debited from your bank account and used to buy fund units based on the market price. SIPs spread your investment over time, average costs, and eliminate the need to time the market.
Is SIP a good investment?
Yes, SIPs are a good option for disciplined and long-term investing. It helps you start small, spread investments over time, and average out costs through market fluctuations. SIPs simplify investing by removing the need to time the market.
How Much Can I Invest in SIP?
You may invest any amount in a SIP, depending on your investment goals. Some mutual funds allow you to invest from Rs. 100 per month. There is no maximum limit.
What is the Maximum Tenure of SIP?
There is no maximum tenure for SIPs. You can invest for as long as you want.
Are SIPs similar to Mutual Funds?
SIPs should not be compared to mutual funds. A SIP is a way of investing in mutual funds. It allows you to invest in regular intervals. On the other hand, mutual funds are a type of investment instrument.
Does SIP allow only equity mutual fund investments?
No. With SIPs, you may invest in other types of mutual funds besides equity, like debt and hybrid mutual funds.
What are the benefits of SIP?
SIP offers benefits such as disciplined investing, affordability with smaller amounts, rupee cost averaging, the power of compounding, and flexibility in investment frequency and amount.
Can I modify my SIP amount?
Yes, many SIPs allow you to modify your investment amount. Depending on the type of SIP, you can increase, decrease, or even pause your contributions to suit your financial needs.
What are the types of SIPs available?
There are various types of SIPs in the market:
- Regular SIP – A fixed amount is invested periodically, ensuring discipline and rupee-cost averaging.
- Flexible SIP – Investors can adjust their investment amount based on financial needs or market conditions.
- Top-up SIP – Allows periodic increases in investment, ideal for those expecting salary hikes or bonuses.
- Trigger SIP – Automates investments based on market movements or predefined conditions.
- Perpetual SIP – Continues indefinitely without an end date, suitable for long-term investors.
- Multi SIP – Enables investment in multiple mutual funds through a single SIP, ensuring diversification.
- Tax-saving SIP – Invests in ELSS funds, offering tax benefits under Section 80C.
- Debt SIP – Focuses on low-risk debt funds, prioritising stability and capital preservation.
- Thematic SIP – Invests in sector- or theme-based funds like technology or green energy.
Each SIP type caters to different investment strategies, helping investors align their portfolios with their financial goals.
Can I use a SIP investment plan calculator for any type of investment?
A SIP calculator is explicitly designed for mutual fund investments made through SIPs. It helps estimate potential returns based on your investment amount, duration, and expected rate of return. For other types of investments, you may need a different tool tailored to that specific investment.
