Published On: Sat, Feb 11th, 2017

Find the Best SIP Calculator for Investment

SIP or Systematic Investment Plan is the process of saving small amounts of money and investing it in the market in a systematic way. Just as you pay regular installments towards your recurring deposits, similarly you are paying installments towards your investment. Depending upon your income, saving amount and particular financial requirement, you can set aside a date when the money will be transferred towards your SIP payment.

What is the SIP calculator?

The SIP calculator is an online calculator that helps in assessing the future value of a particular SIP over a period of time. To get the future value of your SIP you will have to enter the amount of money that you will be saving in a year, expected rate of returns and the time period for which you will be continuing the SIP. Once these values are input, the SIP calculator will provide you the value of your SIP after the given period of time with the expected rate of return.

Essentials before Starting a SIP Investment

There is no denying the fact that investment through the Systematic Investment Plan is definitely a good idea. However, there are certain things that need to be kept in mind before investing in SIP. These essentials are as follows:

Financial goals: It is very essential to set your financial goals. You need to have attainable and specific goals that can be met through the SIP route.

Time Period: You must have a set tenure in mind and this will be the tenure of investment of your SIP. The time period will be the time after which you need the money.

Amount to invest: You will need the SIP calculator to assess the amount that you need to invest for the given period of time to meet your expected returns.

Choose a plan: As there are several types of mutual funds from various companies available in the market, choosing the best fund can be difficult. You can take the advice of your financial consultant to choose a suitable plan.

Benefits of the Systematic Investment Plan

Investing by way of the SIP is a very good decision if you cannot save money in a lump sum. Most companies offer investment by way of SIP for a value as low as INR 500 a month. This way even if you start small, you can build a good corpus to meet your financial goals. Here are some other benefits of going the SIP way:

  1. Affordable and flexible option for investment
  2. There are no entry or exit charges on a SIP
  3. There is no need to personally put in money every month in your SIP fund as you can opt for the Electronic Clearing Service (ECS) where you can instruct your bank to provide the facility of auto debit to the particular fund account.
  4. You are stress free as you need not study the market and its ups and downs each day. The fund manager will take care of your funds.
  5. When you stay invested for a long time, you are likely to reap benefits due to the compounding effects.

Therefore, you can choose a reliable SIP calculator and start investing money to meet your financial goals.

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