SIP Calculator

SIP Calculator

 
 
 
 
 
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Inflation Ajdusted Return
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Mutual Fund SIP Calculator with Inflation Calculation

The Mutual fund SIP calculator will help you identify your investment amount to reach your financial goals. Further, this calculator will help you understand the impact of inflation on your investment.

Mutual Fund SIP Calculator with the benefits,advantages of SIP

1) What is a SIP?

When you get your first salary, your parents will ask you to start a recurring deposit in a post office or a bank. Similarly, your investment in mutual funds via a SIP works as a recurring deposit. Above all, SIP is a disciplined way of investing a specific amount in mutual funds monthly, quarterly or weekly. Apart from SIP, you can also invest in mutual funds one time (Lumpsum Investing).

2) What are the types of SIP?

1) Top-Up SIP or Step Up SIP: In a SIP, you invest every month a fixed amount. While, in a top-up SIP plan, you can increase your SIP amount every year. Moreover, you can choose to either increase the investment in terms of percentage or a fixed amount.

For Example, 1st year 5000*12 = 60000. Next year you increase your monthly flow by 10%, so in the 2nd year, your investment will be 5500*12= 66,000, 3rd year 6000*12=72000 and so on. 

Further, this type of SIP helps you achieve two things; firstly, you will reach your goal faster and secondly, you can start will a smaller amount & yet achieve your target amount.

2) Perpetual SIP: The SIP under this plan will continue till you decide to stop the SIP. When you start investing, the mutual fund company asks you to select the tenure of your investment from 1 year to perpetual. Though, you can cancel or pause your SIP anytime.

3) Flexible SIP: In contrast with the above types of SIP’s in this plan g you have the flexibility to change your investment amount depending upon your cash flows. You can either increase or decrease the same provided you inform 7-10 days before your instalment date. 

4) Trigger SIP: This plan allows an investor to shift his fund from one fund; to another upon pre-defined trigger points. The trigger can either be based on the market level, NAV based or time-based.

3) Advantages of Mutual fund SIP

1) Rupee Cost Average: In a stock market the stocks are volatile; the price movement is not a one-way street, as the price of a stock goes up n down due to various direct or indirect reasons. So, when you invest in mutual funds via a SIP, you accumulate units of mutual funds on a specific date every month.

Example: Mr Mehta is investing Rs.5000 every month starting from Sep’20 for 3 years.

Investment Month Investment NAVUnits
05 / 09 / 2020500020.42244.88
05 / 10/ 2020500021.67230.73
05 / 11 / 20205000 19.47256.81
05 / 12 /20205000 20.22247.28
05 / 01 / 2021500021.89228.41
Total25000Average NAV: 20.73Accumulated Units: 1208.11
Hypothetical Data of SIP Investing.

Total Investment: 25000, Average NAV cost: 20.73, Accumulated Units: 1208.11

Now suppose the NAV in October 2021 is 25.23 then the market value of his fund will be Rs.30480/- You can notice that each month the nav is different and Mr Mehta is accumulating units across the different market cycles.

2) Flexibility: When you plan to invest via SIPs, you get the flexibility to invest in terms of tenure as well as your investment amount. Further, you can begin to invest with as low as Rs 500. However, in some mutual fund companies, the SIP amount is as low as Rs 100. You can choose your desired period for investment and can stop the same when you wish to.

3) Discipline Investing: In addition, to the above advantage SIP investing in mutual funds creates a disciplined approach. You get into the habit of first investing than spending rather than spending first and saving later.

4)What is a Mutual fund SIP Calculator?

When you plan your investment, you will want to know how much return will you get in return. The returns on investment in a mutual fund are not guaranteed, but you get an approximate value using the SIP Calculator. Further, the mutual fund SIP calculator will help you determine your future investment value based on certain assumptions.

5)How to Use mutual fund SIP Calculator?

Step1: Firstly, you have to mention the amount of money you are willing to invest every month. 

Step2: Secondly, Your next step is to mention your investment time frame. 

Step3: Third, mention your expected return on your investment. Though returns are subject to market, you can take approx returns for the calculations.

Step4: Lastly, enter the inflation value to know your inflation-adjusted return.

Step5: Once you input your data in the above steps, you can check your calculation.

6)How to Calculate SIP returns in Mutual fund.

M = A [ (1+i)^n-1 ] * (1+i)/i

Where

M: is the amount you get at maturity

A: is the SIP investment amount

I: is the compounded rate of return

n: is the duration of investment (in months)

r: is the expected rate of return

For instance, assume you want to invest ₹1,000 per month for two years at an expected rate of return of 12%.

M = 1000*[(1+0.01) ^24 – 1] * (1+0.01)/0.01) = ₹1,08,973

7)Online SIP with Moneyphi

1) Create Account: Before you start investing, you have to create your one-time online account with our partner BSE. You can start investing if you are KYC compliant. However, if you are not a KYC complaint we have created an online KYC process to ease your investment in a mutual fund. Kindly keep the following documents ready.

1) Pan Card 

2) Cancel Chq or Bank account Statement of the bank you want to start your investment.

3) Sign online.

4) Address proof ( Will require for the KYC process) 

2) Investing options: Once you create your account on Moneyphi, you can start your online investment in a financial goal or simply select a mutual fund of your choice.

3) Set up Auto-pay: When you invest in a mutual fund with a SIP, you have to create an Auto-pay, also known as a one-time mandate (OTM), to automate your future instalments. Your OTM will be of the same bank which you would have mentioned during your onboarding process. You can check the process to set up auto-pay here.

4) Online investment: Once you have set up an autopay, you can make your first payment today. Further, you can invest through UPI or net banking mode. While the limit of UPI is Rs.1,00,000 on a given day for net banking, the limit is as per your bank.

8) Conclusion

Even after considering the benefits of SIPs, “Mutual funds are still subject to market risk”. You can further mitigate the risk by selecting a fund as per your risk profile & your time horizon.

Further, diversify your investments by spreading them over different funds and mutual fund companies. 

To sum up, investing in mutual funds through SIPs and staying over medium to long periods can lay a strong groundwork for your future.

SIP Faq’s

What is a SIP?

SIP is a convenient way to invest a fixed amount every month in a mutual fund. The other way of investing in a mutual fund is one time.


How much can I invest in a SIP?

You can start investing with Rs.500/- every month. Moreover, certain companies allow you to start investing as low as Rs.100/- every month. However, there is no limit on the investment, but a particular fund may have a maximum limit.


What time frame should I invest in a Mutual fund?

Mutual fund companies allow you to select your time frame from 1 year to perpetual. You shall consider staying invested for at least five years in an equity mutual fund. Further, if your tenure is less, you can select from other funds like Hybrid or Debt mutual funds.


Can I cancel or pause my SIP?

Yes, you can cancel your SIP anytime. Further, you can pause your future SIP instalments for some time in a mutual fund.


What documents do I need to start a SIP?

You have to be KYC compliant to start your investment in a mutual fund. Further, you need to set up Auto-pay (Bank Mandate) for your future SIP instalments with your bank. You can even invest in a minor name.