SIP or systematic investment plan is a way of making customised periodic investments in a chosen mutual fund over a period of time. In this aspect, there are certain elements that can guide investors in the right direction so that they can take the best decision when it comes to investing their savings. Let us analyse this further.

Financial calculators have simplified decision making with regards to mutual fund investments. These are online tools that help one calculate an estimated corpus on their investment, over a period of time or how much they need to save from today for potentially reaching their desired financial goal.

Either way, these online calculators can be accessed in a few clicks by investors and help them for SIP plans, lumpsum, retirement, child education, car loan, buying a house, etc. One such useful calculator is the Mutual Fund SIP Calculator. It will ask you for the amount you wish to invest in a chosen fund at regular intervals, along with the time period that you wish to invest for. Then, with an assumed rate of return, it shows an estimated corpus that an investor can expect to accumulate, with time, patience, disciplined investing and expert assistance from a financial advisor.

For example, if Mr. Vijay invests Rs 20,000 monthly in a mutual fund through SIP, over a period of 10 years, he can accumulate a corpus of over Rs 46 Lakhs, assuming the rate of return to be 12%. In this case, the invested amount by Mr. Vijay over 10 years is Rs. 24 Lakhs only. If he wishes to invest in the selected fund in the chosen frequency, the mutual fund SIP calculator helps him understand the corpus he can potentially accumulate. It helps him in planning his monthly finances and understanding how much he should keep aside from his monthly salary or allowance to invest for his financial goals.

SIP Calculator gives one the advantage of planning without the hassle of manual calculation. It is fast, easy, can be accessed online and used as per convenience. It also gives confidence to new or potential mutual fund investors as they get more clarity on how much to start investing with and what they can expect out of the process.

Target Amount SIP Calculator

Another mutual fund SIP Calculator that helps investors make SIP plans is the Target Amount SIP Calculator. Here, one enters the value they wish to have after investing for a certain time period. Then, this tool tells you how much to invest monthly in a SIP to reach this value based on your return assumptions. Suppose, Ms. Martin wants to reach a corpus of 10 lakhs after 10 years through her SIP Investment. Then, taking assumed rate of return as 12% and inflation as zero, we find out that the ideal monthly SIP Investment for her would be Rs 4,347. This calculation was done in seconds using a target amount SIP Calculator.

Similarly, there are other SIP Calculators available online as well, such as Goal Based Top Up SIP, Step Up SIP Calculator etc. that assists investors in making informed investment decisions in mutual funds.

In order to make sound SIP plans, investors needs to understand their risk profile, choose a suitable fund based on that and then plan their investments accordingly. For facilitating this process, one can use the easily accessible mutual fund SIP Calculator.

https://www.miraeassetmf.co.in/calculators/sip-calculator