For many years, SIP ( Systematic investment plan) arrived between us. SIP has witnessed significant growth and makes it an attractive option for looking to invest in long-term financial requirements. In this today’s guide, you will get the information on the SIP Calculator, along with the best way to use it. If you want to get detailed information on the same topic, then you should read all facts of the article. Only by reading the complete article do you get detailed information.
What do you mean by SIP Calculator?
A SIP calculator ( Systematic investment plan) is a free online investment tool that is used to calculate the returns that you can earn on mutual funds investments via the SIP route. It provides you with the break up of the invested amount and overall made returns. By using the SIP calculator, you can determine how much you are required to support every month in reaching the target corpus.
It can be a beneficial tool for planning long and the shorts term financial goals.
A way to make great use of the SIP calculator
- A SIP calculator needs three different sets of information. These sets are the SIP duration, SIP amount, and the expected return rate on the systematic investment per year. Investors have to be sure about these three sets before making the proper use of the SIP calculator. The SIP amounts are not just capital measurements in which you are willing to invest. It also helps you to calculate the risk exposure by considering the income structure risk amount on which you are ready to bear more amount.
- The amount of the SIP investment is one of the two components that determine the investor category to fall in.
- The goal and tenure of the specific SIP is also an essential factor. It analyses the nature of the expected gap and financial needs between the requirement and investment.
- This calculator is used in two ways, one for the corpus calculation method and the other for is contribution calculator.
- The SIP Corpus method permits you to calculate the corpus funds they can generate depending upon the tenure and SIP amount that you are willing to invest.
- The SIP contribution method calculates the investment amount that is required to get the particular corpus size. In this, the SIP calculator receives the input data related to the steps up, target amount, annual expected rate, tenure amount in investment, and other additional data.
In this article, we give you information related to the SIP calculator. Along with the basic understanding of the SIP Calculator, you also get information on the best way to use the SIP Calculator.
I hope you get a clear understanding of the SIP calculator from the above points? In case you have any doubts, then reach out to us by dropping comments below.
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