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SIP Calculator

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Expected return rate (p.a)

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Investment Period

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Total Investment

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Estimated Returns

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Total Value

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Invested amount
Est. returns
Understanding about SIP

Systematic Investment Plan, commonly known as SIP, is a disciplined and hassle-free approach to investing in mutual funds. It offers individuals a systematic way to contribute fixed amounts at regular intervals, eliminating the need for a large, upfront investment.
This investment strategy has gained popularity due to its simplicity, accessibility, and potential for long-term wealth creation



Know the Benefits of SIP

Systematic Investment Plan (SIP) has several benefits:

  1. Disciplined Investing : Encourages regular and disciplined investment, promoting a habit of saving.

  2. Affordability : Allows investors to start with small amounts, making it accessible to many individuals.

  3. Rupee Cost Averaging : Reduces the impact of market volatility by averaging the purchase cost over time,minimising the risk of investing at market highs.

  4. Power of Compounding : The longer the investment horizon, the greater the potential for compounding returns, enhancing wealth accumulation.

  5. Flexibility : Investors can increase, decrease, or stop SIPs as per financial goals and market conditions.

  6. Diversification : SIPs provide exposure to a diversified portfolio of stocks or mutual funds, spreading risk across various assets.

  7. Automatic Investment : Eliminates the need to time the market; investments are automatically made at regular intervals.

  8. Professional Management : Managed by financial experts, ensuring professional oversight for better investment decisions.

  9. Tax Benefits : Certain SIPs, like Equity-Linked Savings Schemes (ELSS), offer tax benefits under Section 80C of the Income Tax Act.

  10. Goal-oriented Investing : Suitable for financial goals like retirement planning, education, or house buying.


What is an SIP Calculator?

A SIP (Systematic Investment Plan) calculator is a financial tool designed to help investors estimate the potential returns on their investments made through a SIP. SIP is a method of investing in mutual funds where investors contribute a fixed amount at regular intervals (usually monthly) instead of making a lump sum investment.

The SIP calculator uses various financial parameters to provide an indication of the future value of investments based on the investor's specified inputs.


Key components typically considered by a SIP calculator include:
  1. Investment Amount : The fixed amount that the investor contributes regularly at predefined intervals (e.g., monthly).

  2. Investment Duration : The period for which the investor plans to continue making contributions through the SIP.

  3. Expected Rate of Return : The anticipated average annual growth rate or return on the investment. This is an estimate, and actual returns may vary.

The SIP calculator then uses these inputs to calculate and display:
  • Future Value : The estimated value of the investment at the end of the chosen duration, considering the regular contributions and expected rate of return.

  • Total Investment : The total amount invested by the investor over the specified duration.

  • Profit or Loss : The potential gain or loss on the investment, calculated by subtracting the total investment from the future value.


Benefits of using SIP calculator

Using a SIP calculator can be beneficial for investors in several ways:

  1. Goal Planning : Investors can use the calculator to set realistic financial goals and understand how much they need to invest regularly to achieve those goals.

  2. Total Investment : The total amount invested by the investor over the specified duration.

  3. Profit or Loss : The potential gain or loss on the investment, calculated by subtracting the total investment from the future value.

  4. Decision-Making : It helps investors make informed decisions about their investment strategy, whether to increase their SIP amount, extend the investment duration, or modify their expected rate of return.

SIP calculators are commonly available on the websites of mutual fund companies, financial institutions, and various financial planning platforms.
Keep in mind that the calculator provides estimates based on assumptions, and actual market conditions may lead to different outcomes. It's a valuable tool for preliminary planning and understanding the potential outcomes of a systematic investment plan.



How does a SIP Calculator function?

FV = P x {[(1 + r)n - 1] ÷ r} x (1 + r)

Where

FV : Future value of investment

P : Principal contributions each month

r : Periodic rate of return

n : Number of contributions towards the principal


For example, if you invest INR 500 per month for 12 months with an expected rate of return of 12%, the formula yields an approximate value of INR 6412.5.



How do you use Zactor Tech's SIP Calculator?

The usage of Zactor Tech's SIP calculator is easy, it provides you with the return on your SIP investments based on your principal amount, expected rate of return and the investment period.
All you need to do is provide inputs to estimate the value of your investments in the future:

  • Monthly investments : This is the amount which you are planning to invest in SIP on a timely basis.

  • Expected rate of return per annum : This is the annual rate of return which you expect from your SIP investments.

  • Investment duration : Investment duration: This is the total tenure or duration of your SIP investment in years


Benefits of using Zactor Tech's SIP calculator:
  • It is easier to calculate the future value of the investments from time to time. Replaces the manual work of using a normal calculator.

  • Provides a clearer understanding as the calculator also uses a diagram which compares the investments made and the expected value of the future investments. The visual aid makes it simpler for comprehension of your SIP investment.

  • Immediate results and improved accuracy.


FAQs

  • Accessibility with an investment as low as Rs.100.

  • Hassle-free process and simple automation for timely deposits.

  • Encourages financial discipline with fixed deposits over time.

  • Diverse investment options based on risk appetite.

  • Understand needs and choose mutual funds based on risk profile and financial goals.

  • Complete the online process with KYC compliance.

Investments made through SIPs are not exempted from tax and therefore, do not have the tax benefit. Only exceptions are ELSS investments (equity linked savings schemes)made through SIPs which are exempted from tax.

Yes, mutual fund companies provide the facility of pausing your SIP investments.

Incase of insufficient balance and you're unable to pay for your SIP investment, you will be charged a penalty ranging from Rs.150-750. However, your investment will not be cancelled for the first missed payment. If several SIP payments have not been paid, then it will be cancelled.

Don’t let your goals slip away

Start planning your roadmap today and take control of your finances.

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