SIP Calculator

An SIP is a disciplined way to invest in mutual funds. It involves contributing a fixed amount regularly, leveraging compounding for long-term goals. A mutual fund SIP calculator helps estimate potential returns, empowering investors to make informed decisions about their mutual fund portfolio.

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Wealth

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Investment

Wealth Gained

Monthly Investment

Your Name

+91

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Written By: Sameep Singh

Sameep Singh Business Unit Head - Domestic Savings

Mr. Sameep Singh is a Business Unit Head for the domestic Investment Business at policybazaar.com, holding a master's from Symbiosis School of Banking & Finance. He has played a pivotal role in crafting investment and term business strategies during his tenure at Policybazaar. His exceptional leadership has been instrumental in driving both product and business growth throughout his impressive career.

Reviewed By: Vivek Jain

Vivek Jain Head of Savings business

Mr. Vivek Jain is the Business Unit Head for Investment Business at Policybazaar.com. A graduate of the prestigious IIM Calcutta he brings over a decade of invaluable experience to his current role. In his capacity as Business Unit Head, he has been a driving force behind the success of Policybazaar's Investment business. Mr. Jain is recognized for his instrumental role in product innovation within the Savings/Investment domain. His leadership and expertise have been pivotal in scaling up the Investment business, underscoring his significant contributions to Policybazaar.com's growth and success.

Insurance Companies
Mutual Funds

Fund Name	5 Years	7 Years	10 Years
	Returns
High Growth Fund Max Life Rating	25.22%	18.75%	16.57% View Plan
Top 200 Fund Tata AIA Rating	24.08%	20.04%	16.74% View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz Rating	18.03%	10.86%	13.19% View Plan
Opportunities Fund HDFC Standard Rating	17.8%	12.49%	13.37% View Plan
Equity II Fund Canara HSBC Oriental Bank Rating	11.66%	9.26%	8.56% View Plan
Grow Money Plus Fund Bharti AXA Rating	15.86%	13.25%	12.6% View Plan
Multiplier Birla Sun Life Rating	18.7%	11.75%	14.16% View Plan
Equity Top 250 Fund Edelwiess Tokio Rating	14.2%	10.9%	10.77% View Plan
Opportunities Fund ICICI Prudential Rating	15.97%	11.94%	10.84% View Plan
Flexi Growth Fund LIC Rating	-	-	- View Plan

Fund rating powered by

Last updated: 19 Nov 2024

Compare more funds

Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	24.92%	31.48%	21.87%
Flexi Cap Fund PARAG PARIKH	20.69%	26.41%	19.28%
Large and Mid-Cap Fund EDELWEISS	22.34%	24.29%	17.94%
Equity Opportunities Fund KOTAK	24.64%	25.01%	19.45%
Large and Midcap Fund MIRAE ASSET	19.74%	24.32%	22.50%
Flexi Cap Fund PGIM INDIA	14.75%	23.39%	-
Flexi Cap Fund DSP	18.41%	22.33%	16.91%
Emerging Equities Fund CANARA ROBECO	20.05%	21.80%	15.92%
Focused fund SUNDARAM	18.27%	18.22%	16.55%

Updated as of Dec 2024

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What is SIP and Why Should You Choose SIP?

A Systematic Investment Plan (SIP) is a disciplined method of investing money in mutual funds. It allows investors to contribute a fixed amount of money regularly, typically on a monthly basis, into a selected mutual fund scheme.

SIPs in Equity Linked Saving Schemes (ELSS) enjoy the EEE (Exempt, Exempt, Exempt) tax benefit. This means the ELSS SIPs offer significant tax benefits under Section 80C of the Income Tax Act, allowing you to save up to Rs. 1.5 lakh per year. Use a mutual fund SIP calculator to plan your investments and reap these tax advantages.

SIP is a smart way to save and grow your money. It helps you save regularly, reducing the impact of market ups and downs. Plus, it lets your money grow over time through compounding. Similarly, term insurance ensures financial security for your loved ones, working alongside SIP to create a comprehensive financial plan. So, SIP is a simple and effective method for building wealth.

Video
information

SIP Calculator: Calculate Your Wealth Growth Easily!

What is an SIP Calculator?

A Systematic Investment Plan (SIP) calculator is a digital tool designed to help investors estimate the potential returns on their mutual fund investments made through SIPs. It operates by taking into account factors such as the expected rate of return and the projected future value of the investment after a specified number of years.

The mutual fund SIP calculator simplifies this process by automating the computations. It takes into consideration the monthly investment amount, the expected rate of return, and the investment horizon to provide an estimate of the potential future value of the investment.

Example of Using a Mutual Fund SIP Calculator

If you're 25 years old and plan to invest ₹10,000 per month for 30 years, with an expected return of 12%*, a mutual fund SIP calculator shows that you could potentially accumulate at least ₹3.08 crore after 30 years.

This information can help you select a mutual fund or a market-linked fund scheme with historical performance that aligns with your desired return, which will help you plan your retirement accordingly.

In scenarios where you have a fixed monthly investment in mind, using a mutual fund SIP calculator is important for planning your investments effectively.

*The estimated rate of return is a guideline and actual results may vary. Adjust the rate based on your risk tolerance and financial goals. For personalized advice, consult with a qualified financial advisor.

How Do Mutual Fund SIP Calculators Work?

The SIP mutual fund calculator works on the basis of the following formula:

Let’s understand the working of the SIP mutual fund calculator with an example:

Rohit, a young professional, wants to invest ₹10,000 monthly for 30 years at a 12% interest rate. The monthly interest rate is calculated as 12% / 12 = 1% or 0.01 in decimal.

Where:

P is the monthly investment amount (₹10,000)
r is the periodic interest rate (12% per year, compounded monthly, so 12%/12 = 1% per month or 0.01)
n is the total number of payments (30 years * 12 months/year = 360 months)

Calculation:

Future Value = 10000 * (((1 + 0.01)^360 - 1) / 0.01) * (1 + 0.01)

You'll find:

Future Value ≈ ₹3.08 Cr.

Therefore, Rohit's investment of ₹10,000 per month for 30 years at a 12% annual interest rate will grow to approximately ₹3.08 Cr.

**The interest rate on an SIP will vary as per the market situation. It may decrease or increase and can change the returns estimated.

How to Use Policybazaar’s Mutual Fund SIP Calculator?

Here are the steps you can follow to use the SIP mutual fund calculator:

If You Know Your Investment Amount:

Calculate your returns based on a given investment amount.
1. Monthly Return Calculation
  - Visit Policybazaar's website and locate the mutual fund SIP calculator.
  - Enter the following information:
    - Specify the amount you plan to invest each month.
    - Enter your anticipated annual return rate.
    - Indicate the duration of your investment in years.
  - The mutual fund SIP calculator will display the total accumulated amount at the end of your investment period.
2. Yearly Return Calculation
  - Visit Policybazaar's website and locate the mutual fund SIP calculator.
  - Enter the following information:
    - Yearly Investment Amount.
    - Expected Annual Return.
    - Investment Horizon
  - The mutual fund calculator will display your estimated yearly returns and the total accumulated amount
3. Lump Sum Return Calculation
  - Visit Policybazaar's website and locate the SIP investment plan calculator.
  - Enter the following information:
    - Specify the one-time amount you plan to invest.
    - Enter your anticipated annual return rate.
    - Indicate the duration of your investment in years.
  - The calculator will display your estimated lump sum returns and the total accumulated amount at the end of your investment period.
If You Know Your Goal Amount:
- Enter the amount you aim to save or you want to generate through your investments.
- Specify the time period you plan to invest for.
- Input the expected rate of return on your investment.
- The SIP calculator will display real-time results of the monthly investment, the total investment you have to make, and the wealth you will gain from that.

Why Use SIP Mutual Fund Calculator?

With a mutual fund SIP calculator, you can make your investment decisions more insights-driven. These tools make you a better investor by offering multiple benefits, including -

Strategic Financial Planning:

The mutual fund SIP calculator acts as a strategic financial planning tool. It offers a clear and realistic projection of your investment's growth over time.
Investment Goal Setting:

Aligning your investments with specific financial goals is crucial for success. Whether you're saving for education, a new home, or building a retirement corpus, the mutual fund return SIP calculator becomes an important tool. It assists in calculating the required investment amount and the time it will take to achieve your defined objectives.
Scenario Analysis:

The monthly SIP investment plan calculator enables you to conduct scenario analyses. You have the flexibility to adjust variables such as investment amount, duration, and expected returns.
Risk Assessment:

Assessing the risk associated with investments is a critical aspect of financial planning. The SIP mutual fund calculator facilitates this by considering factors such as expected returns and investment duration. This aids in gaining a comprehensive understanding of the potential risks and rewards associated with different investment plans and options.

Key Takeaways

SIP mutual fund calculators have become an essential tool for today's digitally savvy investors like you. If you want to invest in different funds through SIPs, using the SIP calculator mutual fund is a must for making realistic decisions. With our best mutual fund SIP calculator, you can estimate potential returns and choose the best SIP plans that best suit your needs.

FAQs

What are the benefits of SIP?
The following are the benefits of investing in a SIP:
- You can invest in small amounts continuously
- You can choose monthly auto-payment
- Better long-term advantages than a one-time investment
- No stress in regards to the market ups and downs
- Helps to plan the budget and manage expenses efficiently.
Are SIPs equivalent to mutual funds?

No, SIP is not equivalent to mutual funds. However, SIP is a medium of investing in mutual funds. In an SIP, you invest more periodically than in a lump sum.
Is SIP safer than lump sum investments?

Yes, SIP is a safer option than a lump-sum investment. Investment in a SIP has a low risk and the points of investment are spread out over a long period. The idea is simple: when the market is high, you can purchase some units of the fund, and when the market is slow, you can purchase the same unit for an equivalent amount.
How can I cancel a SIP?

If you have started your SIP in an online mode, you can cancel your SIP by choosing the ‘Cancel SIP’ option for your upcoming transactions. However, if you have started SIP offline, you need to visit the nearest branch or get in contact with a relationship manager to have your SIP canceled.
What is a Lump-sum Calculator?

A lump-sum calculator calculates the maturity amount of a one-time or lump-sum investment made by the investor. You need to enter the amount of investment, tenure of investment, and expected rate of return to estimate the maturity amount and the returns on investment.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.