This Mutual Fund SIP Calculator helps you calculate how much SIP return you can get based on the expected return from the right investment.
You can consider 10% to 12% for at least 5 years as a good long-term return from mutual funds.
Mutual Fund SIP Calculator helps you calculate the income and growth of your Mutual Fund SIP investment based on your deposit, rate of return and maturity.
What is Mutual Fund SIP Calculator?
SIP (Systematic Investment Plan) Calculator is a calculator that helps you understand the expected return from a mutual fund based on the money you invest and the rate of return. This can help you define and plan your goals for how much you can save each month.
SIP can be done monthly, quarterly, semi-annually or annually. The above calculator can help you calculate SIP returns based on monthly deposits as deposits are more frequent.
How does Mutual Fund SIP Calculator work?
It is easy to understand how SIP works.
You deposit a fixed amount every month for the specified period and your SIP returns are calculated based on the monthly return (rate of return). Here we are talking about future returns, not past SIP returns.
For example, if the annual return of one of the best mutual funds is 10%, by dividing the return by 12 we get Monthly interest = 10 / 12 = 0.83%. Then multiply this amount by the amount in your balance and divide by 100. Let’s say you deposited Rs. 1000 for the first month, we calculate as follows:
= 0.83% * Rs. 1000/100
= Rs. 8.33 rupees 8.33 is the expected return after 1 month.
You reinvest Rs. 1000 via SIP makes your balance Rs. 2008.33 and after 2nd month your balance will be Rs. 2016.67 a. You can use the calculator above to calculate your own deposit, return rate and duration.
Which is the best SIP for 5 years?
There are many mutual funds you can invest in. If your goal is 5 years or longer, it is important to understand the important factors you need to consider when choosing the best index mutual fund.
Some of these are:
This is the fee charged by the AMC (Asset Management Company) for managing your money. This is the annual cost that should be as low as possible when choosing a mutual fund.
AUM: This is assets under management i.e. all funds are investment in a mutual fund. The more money people invest, the more they rely on mutual aid. However, this is not always the case as some currently popular AMCs try to sell mutual funds to people who do not understand mutual funds that need to be considered while increasing their AUM.
Past Returns: But past returns are no guarantee of future performance of a mutual fund, but it is very important to check this analysis while choosing best mutual fund for SIP in 5 years.
Stock Portfolio: Another important thing to check is the list of stocks currently held in the mutual fund. Every mutual fund has a fund manager associated with it who selects a portfolio of stocks to maximize your investment return. If you are investing in stocks or have ideas on stock investing or analysis, you should see the current list of stocks in the mutual fund market.
Can you start using RS for SIP? 1000?
Yes, you can start SIP with Rs. Many mutual funds allow you to start an SIP from Rs 1,000. 500 depending on the time you choose.
When investing for the long term, it is always better to combine time trading and reciprocal trading rather than time trading. Even an annual return of 8% for the next 20 years can give you good returns on SIP. To understand how interest spell works in SIP, you can check out this article on SIP return for next 20 years.
Yes, compound interest has a role in SIP and we have proven this by comparing it with PPF (Public Provident Fund) with annual compound interest.
