Online SIP calculator
Understanding SIPs and How They Are Calculated
Systematic Investment Plan (SIP) is a disciplined investment strategy where an investor regularly invests a fixed amount of money in mutual funds at regular intervals, typically monthly or quarterly. SIPs offer several advantages such as rupee cost averaging, disciplined investing, and the power of compounding.
SIP allows investors to invest a fixed amount regularly, which helps in building wealth over time. This regular investing approach instills financial discipline among investors. It also mitigates the effects of market volatility through rupee cost averaging. When the market is low, the fixed investment amount buys more units of the mutual fund, and when the market is high, it buys fewer units. Over time, this averaging out of costs can lead to potentially better returns.
Moreover, SIP harnesses the power of compounding by reinvesting the returns earned on investments back into the scheme. This reinvestment leads to the exponential growth of wealth over the long term. The calculation of SIP involves determining the number of units purchased and the total investment made over a period of time.
Our SIP calculator offers users a streamlined way to plan their investments, providing accurate projections of future wealth accumulation based on input parameters like investment amount, time period, and expected rate of return. With visual representations.