SIP Calculator
Plan Your Investments and Achieve Financial Goals
SIP Calculator
What is SIP?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly or quarterly) instead of a lump sum. SIPs help you build wealth over time by leveraging the power of compounding.
Benefits of SIP:
- Disciplined Investing: Encourages regular savings.
- Rupee Cost Averaging: Reduces the impact of market volatility.
- Flexibility: Start with as little as ₹500 per month.
- Long-Term Wealth Creation: Ideal for achieving financial goals like retirement, buying a house, or funding education.
Frequently Asked Questions
1. What is the formula used in the SIP Calculator?
The SIP Calculator uses the following formula:
FV = P × (((1 + r)^n - 1) / r) × (1 + r)
Where:
- FV = Future Value
- P = Monthly Investment
- r = Monthly Rate of Return
- n = Total Number of Months
2. Can I change my SIP amount during the investment period?
Yes, most mutual funds allow you to increase or decrease your SIP amount as per your financial situation.
3. Is SIP suitable for short-term goals?
SIPs are more effective for long-term goals due to the power of compounding. For short-term goals, consider other investment options like fixed deposits or liquid funds.