How SIP Calculator Can Help You?

 www.investonline.in  website provides a tool known as an easy-to-use SIP calculator for comparing different plan options. You can use SIP calculator to gauge the potential returns your capital will get in future.

Example: If you invest ₹1,000 in a ₹50 per unit SIP, what kind of returns will you see?

You can select a 5-year rolling return for your calculation. The result shows an expected growth rate of around 12% per annum for the ₹1,000 investment. The longer the period, the higher the returns.

The tool calculates returns as a percentage. If your contribution is made for a 15-year period, the estimated return on your investment will be in the range of 15.5% to 17.7%. This shows that SIPs have the potential to deliver higher returns compared to other investment options. However, you will also get higher risk.

Minimum Invested Amount

Most SIPs come with a minimum amount for investment. This is what the fund house requires as part of the SIP contract. The minimum amount needs to be within your reach and you must not feel burdened to fork out the amount. An SIP investment can be started  in a few clicks.

The importance of SIP

Let us understand this better. Many investors believe in the principles of mutual fund investing. However, mutual funds offer an opportunity for investment in stocks, bonds, etc. However, SIPs are much simpler and require very little knowledge about stock markets.

This is because SIPs involve investing a fixed sum for a period. This amount is invested by the funds in various securities. This is why the sooner you invest, the better it is. SIPs aren't as complicated as stocks or bonds.

How To Start?

If you have some savings, you can start the SIP early in your investment horizon. The earlier you start, the higher your chances of achieving good returns.

You will e surprised to know that almost 50% of investors who want to make investments, chose an SIP over other options. Even though the savings rate in India is increasing, not many people are aware of SIPs.

An SIP calculator is a simple tool that helps investors makes educated decisions. You just need to enter your basic details – age, monthly income, etc. You can start investing using your regular bank account or any other electronic/online account.

You can view the different SIP options available from the InvestOnline website and choose the one that suits your financial goals.

It is important to remember that for an investor, an SIP is a long-term investment plan. Therefore, you need to be prepared for higher risk levels as you will be investing for a longer period of time.