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Saturday, February 8, 2020

SIP Calculator app India - Mutual Funds info

Lumpsum and SIP Calculator app for mutual funds*

Easy to use SIP calculator app that helps you calculate the expected returns on your mutual funds for both Lumpsum and SIP (applicable for India).

SIP Calculator is useful for calculating maturity amounts of your mutual fund investments when you are planning for financial goals. You can also find the returns required to achieve your financial goals and select mutual funds accordingly.

Note - Mutual fund returns over long term can be estimated as 10% (Conservative), 12%
(Moderate) and 13.5% (Aggressive) for your reference - Applicable only for India

What is meant by SIP?

An SIP is a smart and easy way to invest in Mutual Funds. SIP allows you to invest a fixed amount on a monthly basis. It is a planned approach towards investments that helps you develop a discipline of regular investing and create more wealth over the long term.

How does it work?

Let us check how an SIP works with an example. Say you are starting an SIP of Rs. 1000 in a Mutual Fund on 1st date. Then on 1st of every month Rs. 1000 will be auto-debited from your bank account and invested in the fund.

For every instalment, you will receive units of the fund that is added to your account. These units are purchased at different NAVs depending upon the NAV on the 1st of every month.

Hence, investors starting an SIP benefit from both compounding and lesser risk.

What is compounding?

Compounding refers to a simple rule - the sooner you begin investing, the more your money grows with time. Let us understand this with an example.

Kishore started investing Rs. 5000 in SIP at the age of 30. He planned to invest till his retirement at 60. Assuming returns of 15% per year, by the age of 60 Kishore will have total amount of 3.5 crores.

Ramesh started investing Rs. 10000 in SIP at the age of 40. Assuming the same returns and retirement age, he will have an amount of 1.5 crores.

Even though Kishore is investing a smaller amount every month he has created more than twice of Ramesh’s wealth by starting early.
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What are the advantages of SIPs?

1. Disciplined investing

SIPs ensure that you invest regularly and helps you develop the habit of investing. Disciplined investing is one of the first steps towards attaining your financial goals.

2. Convenience

SIP is an easy way to invest in Mutual Funds. You just need to complete a one time online registration with your bank to start an SIP.

3. Wealth Creation

When you invest in an SIP over long term, you can accumulate significant wealth. An SIP of Rs. 1000 for 20 years can provide more than Rs. 25 lakhs.

4. Flexibility

SIPs do not have any lock-in period, which means you can cancel or redeem the investments anytime. You can also increase or decrease the SIP amount and duration.

Investing in an SIP has proven to be one of the best ways to create wealth for an investor. Start an SIP today!

The app can be used as

1) SIP Returns Calculator app
2) Lumpsum Returns Calculator app
3) Mutual Funds Returns Calculator

Please note that this SIP calculator app has been made in the context of SIP/Lumpsum mutual fund investments in India. The return rates specified above will not be applicable for countries other than India.

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