SIP Calculator - How SIP Calculator Works? | Learn how to use properly to calculate SIP Returns
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- čas přidán 7. 09. 2024
- Are you searching for what is SIP calculator, how sip calculator works and how to use SIP calculator properly.
Well many people use SIP calculator for very common purposes such as wanting to know:
How much to invest in SIP to get 1 crore in 15 years?
What if I invest 5000 a month in SIP for 5 years?
In this video, we will explore the concept of SIP (Systematic Investment Plan) Calculator and learn how to use it effectively.
We'll delve into topics like understanding the workings of a SIP Calculator, selecting the right growth rate, and estimating SIP returns online.
Additionally, we'll also cover how to calculate the future value of SIP in Excel. So, if you're looking to make informed investment decisions and maximize your returns,
this video is perfect for you.
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What is SIP or Systematic Investment Plan
It is an investment method that allows individuals to regularly invest a fixed amount in mutual funds at regular intervals (monthly, quarterly, etc.).
SIPs offer the advantage of rupee cost averaging and long-term wealth accumulation through disciplined investing.
What are the benefits of SIP investing
Disciplined Investing: SIP promotes regular and disciplined investing, helping individuals to cultivate a habit of saving and investing consistently.
Rupee Cost Averaging: Through SIP, investors buy more units when prices are low and fewer units when prices are high. This averaging effect reduces the impact of market volatility and potentially enhances returns over the long term.
Flexibility: SIPs offer flexibility in terms of investment amount, frequency, and duration. Investors can start with small amounts and increase their investments gradually as per their convenience.
Long-Term Wealth Creation: SIPs are designed for long-term wealth accumulation. By staying invested over a longer duration, investors can potentially benefit from the power of compounding and generate significant wealth over time.
Convenience: SIPs can be easily initiated and managed online, providing convenience and accessibility to investors. Regular investments can be automated, reducing the need for constant monitoring.
Diversification: SIPs enable investors to diversify their investment portfolio by investing in a basket of securities through mutual funds. This diversification helps in spreading the risk and potentially increasing returns
What is SIP Calculator
A SIP calculator is a tool used to calculate the potential returns on investments made through a Systematic Investment Plan (SIP). It works by considering factors like the investment amount, duration, expected growth rate, and compounding interest.
How SIP Calculator Works?
It applies compounding interest to your regular investments over time, considering the frequency of investments and the expected growth rate. This allows you to visualize the potential growth of your investment portfolio and helps you make informed decisions about your SIP investments
What is the SIP calculator formula
The formula for calculating the future value of investments made through a SIP (Systematic Investment Plan) can be represented as:
FV = P * [(1 + r) ^ n - 1] / r
Where:
FV = Future Value of the SIP
P = Monthly investment amount
r = Expected rate of return per period (divided by 100)
n = Number of periods (number of months or years)
How do you calculate future value of SIP in Excel?
To calculate the future value of SIP in Excel, you can use the FV function, which takes inputs such as the interest rate, number of periods, and periodic payment.
What if I invest 3000 a month in SIP for 5 years?
Using the formula for future value of SIP:
FV = P * [(1 + r) ^ n - 1] / r
FV = 3000 * [(1 + 0.08/12) ^ 60 - 1] / (0.08/12)
After calculating this, the future value of investing 3000 a month in SIP for 5 years with an 8% annual rate of return compounded monthly is approximately 2,03,915.55.
Please note that this calculation assumes a constant rate of return throughout the investment period and does not consider any expenses or fees associated with the investment.
How much to invest in SIP to get 1 crore in 15 years?
Using the formula for future value of SIP:
FV = P * [(1 + r) ^ n - 1] / r
We need to solve for the investment amount (P). Rearranging the formula, we get:
P = FV * (r / [(1 + r) ^ n - 1])
P = 1,00,00,000 * (0.10 / [(1 + 0.10) ^ 15 - 1])
After calculating this, the amount you need to invest in SIP per period to accumulate 1 crore in 15 years with a 10% annual rate of return compounded annually is approximately 24,417.38
Super informative
Glad it was helpful!
Nice video 👍👌👍👌
Thank you so much 😀
How to review existing sip? When to exit from particular fund?
And another question is sip having compound interest?
At present NAV of all the fund is very high, is it prudent to run the existing SIP. Please advice.
Quant Flexi Cap
Tata Small Cap
Kotak Emerging
Nippon Small Cap
Canera Rebecco Focused
Each 3k
I am beginner, plz tell is this good portfolio or make some changes plz suggest
Please review my portfolio sir parag Parikh flexicap, SBI mid cap, axis small cap and Canara robeco small cap fund each with 4000 rs per month sip for 30 years
Hi Anjali
The funds are good and portfolio is very well diversified. Kindly continue your investments in these funds.
Jai hind sir mai Indian army se hu mujhe apse ek help chahiye.
Mujhe 20k ki sip karna h atleast 20 years ke liye.
So please flexi cap,mid cap and small cap me diversify karke ek accha sa portfolio bata dijiye.
It's my humble request jai Hind 🇮🇳
Please review axis mid cap fund
Alright
We will review this fund very soon
Hi
Nice brother, what is your name brother?
Please review my portfolio
Motilal Oswal Midcap - 2500
Kotak Emerging Midcap - 2500
HDFC Flexicap Fund - 2000
Tata Smallcap Fund - 1500
Nippon Smallcap Fund - 1500
Canara Robeco ELSS Fund - 2500
Investment Horizon - 10 to 15 yrs. Looking for longterm stable returns