Invest the Right Amount Using SIP Calculator
Stock markets have always attracted investors with their attractive returns. However, the risk involved as kept many enthusiasts at bay from entering the market. Understanding the strong need to mitigate risk, asset management companies launched mutual funds.
Mutual funds are collective in nature, and they allow greater risk distribution as compared to individual instruments. Moreover, they offer substantial returns if opted for long term investment plans.
In order to gain the benefit of significant capital appreciation, experts recommend the use of Systematic Investment Plan or SIP. However, many investors are often confused about how much money to allocate, when to allocate, and what will be the returns. To overcome such queries, companies like DC have launched free service of SIP calculator.
What is a SIP Calculator?
An SIP calculator is a user friendly tool that determines the future value of mutual fund investment using the SIP scheme. This sophisticated tool takes into account several factors such as inflation, frequency of payment, growth rate, etc. to determine the real future value of SIP
How to Use an SIP Calculator?
This unique tools has 5 input fields as follows –
- SIP Amount – the amount which you aim to invest on regular basis.
- Investment Term – the total duration of time for which you aim to invest a certain amount.
- Investment Frequency – the time frequency at which you will invest in the SIP plan. i.e. monthly, 3-monthly, yearly.
- Expected return rate – the average annual return rate which you expect to receive from the investment.
- Annual inflation rate – the current inflation rate that is prevalent in the economy.
SIP Calculator output:
Once you have entered all the appropriate values in the given calculator, you will instantly receive the quotes for the total value of investment, the inflation adjusted returns value, and the resultant return rate (after inflation has been deducted).