Estimate the growth of your systematic investments in mutual funds.
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals. Our SIP returns calculator helps you estimate the future value of your SIP investments based on your monthly contribution and expected returns.
The magic behind SIPs is the power of compounding. This means you earn returns not just on your principal amount, but also on the accumulated returns. Over time, this can lead to significant wealth creation. This investment calculator clearly shows how your small, regular investments can grow into a substantial corpus for your long-term goals.
A SIP is a disciplined way to invest in mutual funds. Instead of investing a large single amount (lumpsum), you invest a smaller, fixed amount periodically (usually monthly). This helps in building a habit of saving and investing for your financial goals.
The power of compounding is the process where your investment returns themselves start earning returns. With each SIP installment, your investment base grows, and the returns are calculated on this larger base. Over a long period, this snowball effect can dramatically increase the value of your investment.
The main difference in the lumpsum vs SIP debate is the method of investment. In a lumpsum investment, you invest a large sum of money at one time. In a SIP, you invest smaller amounts at regular intervals. SIPs are often preferred by salaried individuals as they average out the purchase cost over time (Rupee Cost Averaging) and reduce the risk of timing the market.
Key SIP benefits include: 1) Disciplined investing, 2) Rupee Cost Averaging, which lowers the average cost per unit, 3) The power of compounding, and 4) Flexibility to start with a small amount, making it accessible for everyone to start their investment journey.
Yes, most mutual fund houses offer the flexibility to pause your SIP for a few months or stop it altogether without any penalty. You can also increase or decrease your SIP amount based on your financial situation through a "SIP Top-up" or by starting a new SIP.