Overview of Financial Goal Planning SIP Calculator

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SIP (Systematic Investment Planning) is the right option for an investor to invest in long-term wealth gain. If you are among the salaried people or running a business, keeping some amount aside every month and investing in mutual funds is a one-way savings and building your wealth. Many mutual fund options available, and to see how much return you will get after years of investment, the SIP calculator is the best.

Investing in mutual funds is part of financial goal planning that will help you during post-retirement, a child’s education, or any emergency. The return from this investment depends on the interest rate, the total amount you invested, and the total years.

Financial Goal Planning SIP Calculator

What is SIP?

SIP or Systematic Investment Plan is investors’ most preferred mutual fund option. Through SIP, investors can allocate a predetermined sum of money to a specific mutual fund or group of mutual funds regularly, usually monthly. You can start with a minimum pay of Rs 500 pm and go higher as per your monthly or long-term income requirements. To know how much in return you earn after a predetermined year, you can use the SIP calculator. SIP is undoubtedly the best financial goal-planning option.

What is Financial Goal Planning – SIP Calculator?

A financial goal planning SIP calculator is an online tool that you can use to estimate returns on SIP investments in mutual funds. Mutual fund SIP investments have recently emerged as one of millennials’ most well-liked investment choices.

Several calculators for mutual fund SIP are available to help prospective investors estimate their mutual fund investments. However, a mutual fund scheme’s real returns vary based on several factors. This includes your total monthly investment, market conditions, and total years of investment.

How will the Financial Goal Planning SIP Calculator help?

According to mutual fund experts, SIPs are a more profitable way to invest money than lump sum payments. It assists you in developing sound financial habits and discipline that will serve you well in the long run.

An online SIP calculator is a valuable tool that helps you know the projected return on your total investment.

How does the SIP Calculator work?

Using an online SIP calculator is easy. It works on the formula-

  • M = P × ({[1 + i]^n – 1} / i) × (1 + i).
  • M is the total amount you may receive upon maturity.
  • P is the amount you invest at regular intervals.
  • n is the number of payments you have made.
  • i is the rate of interest.

You do not have to apply this formula; the calculator does it on its own. You need to enter specific details. This includes your investment amount, total expected years, and rate of interest. The calculator will display the total amount. However, you must remember that the interest rate varies according to the market.

Some Advantages of Financial Goal Planning SIP Calculator-

There are benefits of using an online financial goal planning SIP calculator:

  • It helps you plan your monthly investment.
  • It helps you know the maturity returns after specified years.
  • Saves time from the manual calculation.
  • User-friendly tool and is entirely free.

Conclusion

The financial goal planning SIP calculator is undoubtedly the best tool you can use as a part of your long-term investment goal. You can decide which mutual fund is best for your financial goal planning.

FAQs – Financial Goal Planning SIP Calculator

1. How much is the SIP calculator reliable?

Ans. Online SIP calculators are reliable because they give accurate results. However, there can be changes as per the interest rate or the market condition at a later stage.

2. How much can I invest in SIP?

Ans. You can start the SIP investment with Rs 500 and pay more. It entirely depends on your long-term financial goal and ability to invest.

3. What is the maximum tenure to invest in SIP?

Ans. There is no limit to the tenure of SIP investment. You can have it as far as you want to continue.

4. Can the SIP Amount be modified?

Ans. Yes, you can change the amount of your SIP, especially in flexible SIPs. However, with other kinds of SIPs, you cannot change the SIP amount once initiated within the chosen investment period.

5. Is it possible to estimate the total SIP return?

Ans. You can use the SIP calculator to estimate the possible return after years of investments. However, you need to know that the return depends on the interest rate and the market condition.

6. Are SIPs and Mutual funds the same?

Ans. People often get confused between SIPs and mutual funds. SIP is one type of investment, not a stock market investment. SIP allows you to invest periodically as per your choice.

7. What are the different types of SIPs?

Ans. There are different types of SIPs, including –

a) Step-up SIP: This type allows you to set up automatic investments at certain intervals at a specific amount or percentage.

b) Perpetual SIP: With a perpetual SIP, there is no expiration date, and you can continue investing for as long as you choose.

c) Trigger SIP: Using a trigger SIP, you can begin investing at a particular NAV, date, index level, or occasion.