SIP Calculator (2024)

FAQs

Are SIP calculators accurate? ›

The accuracy of SIP calculator results depends on factors such as the assumed rate of return, investment tenure, and consistency in investment amounts.

While the majority of your SIP investments are spread across multiple funds, the 7-5-3-1 rule suggests setting aside a portion for a one-time lump sum investment. This allows you to capitalize on specific opportunities or market conditions.

Here is a fund which has delivered superior returns over a five year period outperforming the index it is benchmarked against. An investment of Rs 10,000 per month via systematic investment plan (SIP) route over a period of five years in Quant Small Cap Fund's growth is worth nearly Rs 19 lakh today.

A monthly SIP of Rs. 5000 for 3 years would have become Rs. 2.38 Lakhs from the total of Rs. 1.8 Lakhs invested over the time period.

Is SIP safe or not? SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. To avoid this, you should invest in mutual funds when the markets are not overvalued.

SIPs are generally considered safe as they allow for disciplined investing in mutual funds, but they are subject to market risks. Is SIP better than FD? SIPs offer the potential for higher returns over the long term compared to FDs, which typically offer fixed returns but lower potential growth.

Now, as per the 8-4-3 Rule: Year 1-8: With a compounded return of 12% on average, your investment might reach approximately Rs 8.36 lakh by the end of year 8. It considers both your monthly contributions and the returns generated. Years 9-12: The power of compounding kicks in.

What is 15-15-15 Rule? The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund. Consistent adherence to this strategy can lead to significant wealth accumulation.

Divide the rate of return by 72. For example, an investor invested Rs 2 lakh and around 9% rate of return is offered. This indicates that it will take 8 years to double the investment. Alternatively Rule 72 can also be used to determine the rate of return.

Investing ₹2000 per month in SIPs for 20 years is a powerful way to build long-term wealth. You can pave the way for a financially secure future with a disciplined approach and the right choice of mutual funds. So why wait? Invest in these options today and make 2024 a year of SIPs!

What happens if I invest $15,000 a month in SIP for 15 years? ›

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.

Based on this data you will have approx 08–09 lakhs. Here your money will be safe or have zero risk. Mid Cap Mutual Fund:- If you invest Rs 1000/per month for 20 yrs in Mid cap mutual fund, Assuming that 15–16 % interest rate. You will have approx 15–16 lakhs.In long term all mutual funds are safe.

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.

Is SIP halal in Islam? Yes, SIP (Systematic Investment Plan) is halal in Islam. SIP is a way to invest in mutual funds on a regular basis, such as monthly or quarterly. This can be a good way to invest in Shariah compliant mutual funds, as it allows you to invest gradually over time.

For example, if an individual plan to accumulate ₹50 lakhs over the tenure of 5 years, assuming the individual invests in a Flexicap fund or a Multicap fund which is giving an annualized return of 15%, then the individual needs to invest ₹55,750 per month for 5 years in order to generate the required corpus.

As mentioned, SIPs rely on extreme precision. The panels are manufactured off-site according to the design and architectural drawings, and once cut and on the construction site, the panels cannot be amended, so there is little room for error in these designs.

If you invest ₹30,000 per month in a Systematic Investment Plan (SIP) for a period of 5 years, assuming an average annual return of 12% on your SIP investment, using the SIP calculator, your returns will be: Your invested amount will be: ₹18,00,000. Estimated Returns will be will be: ₹6,74,591.

Part 1—— Do SIPs work? Yes, they do work. There is a term called real-returns or inflation-adjusted return (formula is your return achieved - inflation during the investment tenure). If you are positive in these terms, you are making money or creating wealth.