Calculate SIP returns, maturity value, and wealth gained from Systematic Investment Plans
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest small amounts periodically instead of heavy lump sums. The frequency of investment is usually weekly, monthly, or quarterly.
SIPs are a popular way to invest in the stock market through mutual funds, as they instill financial discipline and allow you to benefit from rupee cost averaging.
A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. It calculates the future value of your monthly investments based on an expected annual return rate.
The Formula used for calculation is:
M = P × [((1 + i)^n - 1) / i] × (1 + i)
Where:
Our calculator automates this math and provides a visual breakdown of your invested amount and wealth gained!
SIP is generally better for volatile markets as it reduces risk through rupee cost averaging. Lump sum investments can yield higher returns if made at the bottom of a market cycle, but timing the market is extremely difficult.
Yes, SIPs are flexible. You can stop, pause, or modify your SIP amount at any time without any penalty in most open-ended mutual funds.
No, SIP returns are linked to the performance of the mutual fund and the stock market. They are not guaranteed like fixed deposits.