by on March 12, 2019

Systematic Investment Plan, abbreviated as SIP, has become a hot topic among the investors and for all the good reasons. With the facility of providing periodic investments on mutual funds, it has caught the eyes of many investors. Using the SIP mode of investment, you can invest a fixed amount as per your desired interval in your chosen mutual fund. The amount will be deducted from your bank account on the selected date automatically. Knowing these many features, amateur investors still find it risky to invest in the SIP investment plans. Also, there is another category of people who don’t have appropriate knowledge about the amount of money that they should invest in order to reach their future goal. But, little do they know that they can calculate their appropriate returns beforehand using SIP mutual fund calculator. Yes, you read that right.

SIP calculator is a simple online tool developed to calculate the SIP amount required to reach your future target. Read further to know more about SIP calculator.

What Is SIP Calculator?

SIP calculator, also known as mutual fund calculator or mutual fund return calculator, is used to calculate the return that you will get after at the end of your investment tenure. SIP returns are calculated using a compound interest formula. There is another category of SIP calculator known as SIP Reverse Calculator. This is opposite to the normal SIP return calculator as it calculates the periodic installment required to achieve your desired future goal.      

You must be thinking that a calculator which is so helpful must be difficult to use. Well, you are wrong! The calculator is very user-friendly and accurate. Here is your complete guide on how to use SIP investment calculator.  

How to Use SIP Calculator?

1. Enter the Asked Details- When you will open the online SIP calculator, you will be asked to fill certain details which are mentioned below-    

  • Monthly Investment- Mention the monthly investment that you are willing to invest in the SIP investment plan. However, some investors face difficulty in deciding the monthly investment. If you are also facing a similar situation, then the financial experts of MySIPonline are ready to ease this problem for you. Here is a suggestion by our experts that will surely help you in deciding your monthly investment -
    Investment That Suits Your Pocket - This is one of the important  criteria to keep in mind while choosing the monthly installment. Make sure that your installment doesn’t disturb your monthly budget. Also, the minimum amount that can be invested in the mutual fund is Rs. 500 which is quite affordable. If you are an amateur investor, begin investing with a smaller investment amount.
  • Time Horizon- The time (in years) for which you are willing to invest your money in the mutual fund. Remember the golden rule, more the time invested in a mutual fund, more will be the return. Thus, make sure that your specified time is sufficient for achieving your financial goals.
  • Expected Return- Now, enter your expected return in percentages. According to your requirement, mention the returns that you want to achieve as per your monthly investment and time horizon. Let's see what our finance expert suggest while choosing the return percentage -
    If you have a high-risk appetite then choose your return percentage accordingly. According to our experts at MySIPonline, it is suggested that if more risk factor is associated with your mutual fund then the yields will be high and vice versa, but that’s not true for every mutual fund. As, we all know that it depends on the market capabilities of the fund manager. Therefore, know your risk appetite beforehand and invest wisely.

2. Click on Calculate - Now, when you have specified all the requirements, its the time for the mutual fund calculator to calculate the results. After clicking ‘Calculate’, the calculator will display your future wealth gain which helps you in selecting the best mutual fund for your portfolio.
Happy Investment!   
Reading so far, you must have got some idea about the benefits of SIP calculator. But, that's not all. There are many other benefits that come handy when using SIP calculator.

Benefits of SIP Calculator 

  • Time Saver - Calculating the return through compound interest formula is a tedious and time-consuming job. But, by using a mutual fund investment calculator you can carry out your calculations within a few minutes.
  • Free of Cost - You can use SIP calculator free of cost. You don’t have to spend a single penny for using SIP calculator.
  • No Extra Details Required - Other than monthly investment, time horizon, and return percentage, there is no extra information required.  
  • User-Friendly -  No matter if you are a first-time investor or a professional investor, the user-friendly interface of the SIP planner makes it easy for everyone to use the services. 

Wrapping up all, if you want to invest wisely in mutual funds then you should consider using SIP calculator before investing your hard-earned money. If in case you are facing any problem using SIP calculator, reach out to and use our highly-informative SIP calculator. Also, you can take suggestions from our financial experts on different kind of mutual funds schemes and systematic investment planning. 

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