Investing in mutual funds is a great way to grow your wealth over the long term. And, with the convenience of SIPs (Systematic Investment Plans), investing in mutual funds has become easier than ever before. But, with so many mutual funds and SIP options available, it can be challenging to calculate the expected returns accurately. That’s where a mutual fund SIP calculator comes in handy. In this guide, we will provide you with everything you need to know about mutual fund SIP calculators in India.
What is a Mutual Fund SIP Calculator?
A mutual fund SIP calculator is a tool that helps you calculate the expected returns of your mutual fund investments through SIP. You can use it to determine how much you need to invest every month to reach your financial goals. It works on a simple principle – the earlier you start investing, the higher your returns will be. A mutual fund SIP calculator takes into account your investment amount, the expected rate of return, and the investment horizon to calculate the expected returns.
How to Use a Mutual Fund SIP Calculator?
Using a mutual fund SIP calculator is easy. Here’s how you can use it to calculate your mutual fund returns:
Step 1: Open the Mutual Fund SIP Calculator
You can find a mutual fund SIP calculator on the website of most mutual fund companies or financial websites. Open the calculator and enter the investment amount you want to make every month.
Step 2: Enter the Investment Horizon
Enter the investment horizon or the duration of your investment. The longer the investment horizon, the higher the returns you can expect.
Step 3: Enter the Expected Rate of Return
Enter the expected rate of return or the average return you expect from your mutual fund investment. This could vary depending on the type of mutual fund you have chosen.
Step 4: Get the Results
Once you enter all the required details, the mutual fund SIP calculator will provide you with the expected returns you can expect from your investment. You can also adjust the investment amount, duration, and expected rate of return to find the most suitable investment option for you.
Benefits of Using a Mutual Fund SIP Calculator
Using a mutual fund SIP calculator can provide you with several benefits, such as:
Accurate Calculation: A mutual fund SIP calculator uses a formula to calculate the expected returns based on your investment amount, investment horizon, and expected rate of return. This can provide you with a more accurate estimate of your returns.
Easy Comparison: With a mutual fund SIP calculator, you can compare different mutual fund schemes and see which one offers better returns based on your investment horizon and expected rate of return.
Helps in Goal Setting: A mutual fund SIP calculator can help you set realistic financial goals by providing you with an estimate of the investment required to achieve your goals.
Saves Time: Calculating the expected returns manually can be a time-consuming process. A mutual fund SIP calculator can save you time and provide you with quick results.
Helps in Decision Making: A mutual fund SIP calculator can help you make informed investment decisions by providing you with a better understanding of the expected returns of different mutual fund schemes.
Q1. Can I use a mutual fund SIP calculator for all types of mutual funds? A: Yes, you can use a mutual fund SIP calculator for all types of mutual funds.
A: Yes, you can use a mutual fund SIP calculator for all types of mutual funds.
Q2. Is the rate of return guaranteed in mutual fund investments?
A: No, the rate of return is not guaranteed in mutual fund investments as they are subject to market risks.
Q3. How often should I review my mutual fund investment?
A: It is advisable to review your mutual fund investment at least once every six months.
Q4. Can I change my mutual fund investment amount using a SIP calculator?A: Yes