What is an SIP?
An SIP, or a systematic investment plan, involves investing a fixed sum at a fixed interval. Thanks to two key benefits – discipline in investing and rupee cost averaging – an SIP is one of the most popular forms of investing in mutual fund schemes. You may already be investing through SIP every month.
What is SIP value calculator?
You can calculate SIP future value by applying the future value formula. An easy way to do it, though, is to use our SIP value calculator. This calculator will help you estimate the total wealth accumulated through SIP at the end of the investment period, given an assumed rate of return.
How does SIP future value calculator work?
You need to input three values in this SIP value calculator:
- Monthly SIP investment: This is the amount you plan to save every month. If you are already saving on a monthly basis, use this SIP amount in this first field of the SIP value calculator.
- SIP duration: The number of years you are planning to run your SIP. Make sure you enter a realistic figure here.
- Assumed returns: The returns you expect your investment to generate. In this value, keep in mind that putting in very high returns can be misleading as reality will be far from it. Keep your return expectations reasonable, which will make the result of the SIP value calculator more realistic and therefore more useful for you.