SIP Calculator
Calculate the returns of your mutual fund SIP investment in just a few clicks.
Monthly SIP Amount
â‚ą
SIP Period
years
Expected Return Rate (p.a)
%
Invested amount
â‚ą 30,00,000
Estimated returns
â‚ą 39,66,432
Total value
â‚ą 69,66,432
Disclaimer: Past performance is not an indicator of future returns
What is a SIP Calculator?
A SIP calculator estimates the potential returns on SIP investments. It allows you to calculate the returns your investments may offer based on factors like investment amount, duration, and expected rate of return.
How does a SIP Calculator work?
The SIP return calculator works based on the compound interest formula. Here is how the formula works:
Here is how a SIP calculator formula exactly works:
F = P [ (1+i)^n-1 ] * (1+i)/i
where
F = Future value or the amount you get at maturity
P = Amount you invest through SIP
i = Compounded rate of return
n = Investment duration in months
r = Expected rate of return
For example, if you invest Rs. 5,000 per month for a period of 24 months.
You expect a 12% annual rate of return (r).
Then, you have i = r/100/12 or 0.01.
FV = 5000 * [(1+0.01) ^24 - 1] * (1+0.01)/0.01
= Rs. 1,36,216
Estimated returns = Rs. 16,216
The rate of interest on a SIP will differ according to market conditions, which may change the estimated returns.
How to use Kotak Securities’ SIP Calculator?
Kotak Securities’ SIP Calculator will show you the estimated returns on your investment and its total value. Follow the steps mentioned below.
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Step 1 - Enter the monthly SIP amount
-
Step 2 - Enter the time period you want to invest
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Step 3 - Enter the expected rate of return
After entering all the values, the calculator will show the estimated amount you can get after your investment tenure is complete.
Advantages of using a SIP Calculator
Some of the advantages of using Kotak Securities’ SIP Calculator are as follows:
- A SIP calculator allows you to estimate the returns. This helps you plan for financial goals like your retirement, your child's education, etc.
- The projected returns demonstrate how monthly SIP investments can grow significantly over the long term due to compounding effects.
- It shows how much wealth you can create through SIP investments over your entered years.
- You can navigate around by changing monthly SIP amount, investment tenure, and expected returns to plan better.
- The calculator output helps you determine the ideal monthly SIP amount to achieve your financial goals.
How to Place SIP Order On Kotak Neo App | Mutual Funds SIP
Kotak Securities
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FAQs on SIP Calculator
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.
