What is a Systematic Investment Plan (SIP)?
SIP is a kind of financial plan for making periodic investments into a financial instrument. More specifically SIP or Systematic Investment Plan is an investment instrument for mutual funds. This instrument allows investors to invest with a fixed amount of installment on a monthly or quarterly basis.
SIP Calculator - How to use
SIP Calculator is a financial calculator that calculates the future value of an investment over SIPs. You can calculate the expected return by providing some inputs like SIP amount, duration of investment, and expected rate of return.
Once you adjust the sliders or input the values, the calculator automatically updates the expected profit, total return, and the year-by-year growth chart.
Measure Growth over Incremental SIPs (Step-Up SIP)
Our calculator is capable of calculating step-up investments. Want to increase your SIP investment amount annually? Just toggle "Advanced Options" and input the percentage you wish to increase yearly basis. For example, if you increase 5% yearly on a ₹5,000 SIP, next year your monthly SIP becomes ₹5,250.
Measure Inflation Impact
You can also measure the inflation impact on your investment. In "Advanced Options", input the current rate of inflation. The calculator will immediately show you the inflation-adjusted ("Real") returns compared to the nominal values.
Frequently Asked Questions
Do I need a Demat Account to invest in Mutual Fund through SIPs?
No, Demat Account is not strictly required for investing in Mutual Funds, though it can be used if you already have one with a broker.
How much do I need to pay as a SIP?
You can start with as low as ₹500 per month, and there is generally no upper limit.
Can I stop my existing SIP anytime?
Yes, you can stop anytime by yourself. Most Mutual fund applications or portals provide this option. It also can be done offline by visiting the fund house.
Can I temporarily pause SIP without stopping it?
Yes, the majority of Mutual Fund houses offer a "Pause SIP" facility for a few months.
Can I have more than one SIP of the same fund?
Yes, having more than one SIP in the same mutual fund scheme will not be an issue.