Fintech

Benefits of Using a SIP Calculator

A startling new development is the increased participation of small-time investors in Indian equity markets. One significant factor is the popularity of SIP plans. According to data from the Association of Mutual Funds in India, approximately 26.6 million SIPs were registered in FY22, an increase of 88% over the previous fiscal year, FY21.

People are drawn to SIPs because of their ease and flexibility in contributing to mutual funds and the possibility of a substantial maturity amount. However, investors may want to use a SIP calculator before deciding on a target fund. The calculator helps estimate the potential corpus that may be obtained through regular investing. Please continue reading to learn more about the mutual fund sip calculator and its benefits.

What is a SIP Calculator?

SIP calculator is an online application that allows users to generate basic estimates on mutual fund investments. However, it should be noted that actual returns might vary depending on factors such as market conditions, exit load, etc.

Benefits of SIP Calculator

Here are a few benefits of applying an online SIP calculator:

  • Provides Accurate Results

The SIP calculator produces exact estimations. The device’s interface is user-friendly. Even an amateur may use it to perform computations with ease. Because it is accessible online, all the investor needs to do is provide the necessary personal details. This includes the following:

  • Monthly SIP contribution amount
  • Investment tenure
  • Expected rate of returns

The device will indicate the overall amount invested during the policy term, the estimated interest rate, and the total maturity amount at the conclusion of the tenure.

  • Free to Use and Provides Results Instantly

The digital tool is accessible to investors for free. By providing basic information, individuals may receive an accurate estimate with a minor error possibility in seconds. This eliminates the need to perform the computations manually, saving work and time. Furthermore, as the human intervention is minimal, the chances of making an error by the device are nil.

  • Helps in Making Correct Financial Decisions

A SIP calculator assists in forecasting multiple investment scenarios based on the submitted data. Individuals can experiment with different monthly investment amounts and other parameters to determine other possible outcomes. This will allow for making the necessary changes to obtain the targeted maturity fund. As a result, the calculator assists in making appropriate SIP investments to achieve life goals.

  • Allows Investors to Pick the Best SIP Scheme

Each mutual fund plan features a variable rate of return. Here, the interest rate is determined by the historical performance of the mutual fund scheme. Investors must recognize that the scheme’s prior performance is no assurance for future returns. However, investors may put in the projected rate of return of various mutual fund plans to see the estimated returns throughout their investment. It will help decide the best mutual fund scheme for your requirement.

SIP is a reliable investing product that allows small investors to deploy their modest resources and participate in markets with the potential for significant returns. A SIP mutual fund calculator, on the other hand, is a reliable friend to assist you in picking the proper strategy for your financial journey

Related Articles

Back to top button