Calculate the right SIP using systematic investment plan calculator

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             Systematic Iinvestment Plan Calculator | Image Resource: freepik.com

If you are investing in mutual funds through Systematic Investment Plan (SIP) then calculating the right SIP amount is important. If you invest the right SIP amount regularly then you can reach your financial goals.

 

There are many tools and calculators available to help to find the right amount. One such tool takes the scheme chosen, the SIP amount invested, the frequency of installments, for date and to date as inputs. The output is the amount on the required date and a graph. This way you can calculate the amount that you will get by investing the given SIP amount. Systematic investment plan calculator is a very useful tool.

 

Another calculator takes your monthly investment, the time period and the expected rate of return as inputs and gives the amount you collect at the end of the time period. This tool can be used to calculate the right SIP amount which has to be invested monthly.

 

Kotak Mutual Funds offers different tools and calculators to help you. They are available online.

 

Other tools
There are other tools which give you the amount you collect at the end of investment period. In one of the tool the input is the amount invested and the expected rate of return. The output is the amount you collect. This can be used to calculate the money you need to invest to reach your goal.

One of the calculators helps you to calculate the amount after you have increased your SIP amount. The input to the calculator is the monthly SIP, the duration, the increased SIP amount, the frequency of the increased SIP amount and the assumed annual rate of return. The output is the total money collected at the end of investment period.

 

Kotak Mutual Funds offers these calculators and tools to help you to do the calculations easily.

 

Benefits of SIP
There are many benefits of investing through SIP in mutual funds.They are:

  • As you invest regularly you do not have to time the market. The long term investments are not affected by market volatilities.
  • When you invest a fixed amount you can buy more units when the market is low and less when the market is high. This brings down the average cost of acquisition of units. This is called Rupee Cost Averaging.
  • Investing in mutual funds for long term can make your investments wealth creating investments. It is a smarter way to invest for long term rather than the traditional ones.