Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

What is SIP Calculator, And How Does it Work?

SIPs are a popular way of investing in mutual funds as they allow investors to make small, periodic investments over a period of time. Read ahead to know all about it.

  • Mar 10, 2023
  • 2,605 Views

    Key takeaway

  • A Systematic Investment Plan (SIP) calculator is a helpful tool for investors who want to calculate the potential returns on their mutual fund investments.
  • A SIP calculator online uses advanced algorithms to provide accurate results, considering different market scenarios and historical data.
  • When an investor opts for SIP, they agree to invest a fixed amount at regular intervals. The amount is automatically debited from the investor’s bank account and is invested in the mutual fund scheme of their choice.

Systematic Investment Plan is a popular investment tool in the world of finance. It is a simple and disciplined way of investing in mutual funds, where investors can invest a fixed amount at regular intervals. SIPs are a great way to build wealth in the long run and can be tailored to meet individual investment goals. In this article, we will discuss how SIP works and why it is a popular choice among investors.

What is a SIP calculator?

A Systematic Investment Plan (SIP) calculator is a helpful tool for investors who want to calculate the potential returns on their mutual fund investments. SIP is a method of investing in mutual funds where investors make regular, fixed investments in a fund over a period of time instead of investing a lump sum amount at once. The SIP calculator helps investors to estimate the future value of their investments and the returns they can expect to earn based on their investment amount, investment frequency, expected rate of return, and investment tenure.

What is the Importance of a SIP calculator?

With a SIP calculator, investors can calculate the expected returns and the amount they need to invest regularly to meet their investment goals. Here are three major importance of a SIP calculator.

Financial Planning

One of the significant advantages of using a SIP calculator is that it helps investors in financial planning. It allows investors to set a target corpus for a particular financial goal and calculate the monthly investment required to achieve it.

Accurate Results

A SIP calculator online uses advanced algorithms to provide accurate results, considering different market scenarios and historical data. This allows investors to have a realistic expectation of the expected returns and adjust their investment amounts or goals accordingly.

Saves Time and Effort

Manually calculating the returns and investment amount required for each investment can be a tedious and time-consuming process. A SIP calculator simplifies the process and saves investors the effort of complex calculations.

How Does SIP Work?

When an investor opts for SIP, they agree to invest a fixed amount at regular intervals. The amount is automatically debited from the investor’s bank account and is invested in the mutual fund scheme of their choice. The investment is made on a pre-decided date, and the investor can choose the date at their convenience.

SIP investments are made at the prevailing Net Asset Value (NAV) of the mutual fund scheme on the date of investment. The NAV is the market value of the mutual fund’s portfolio, and it varies daily. Therefore, the number of units allotted to the investor varies based on the prevailing NAV.

Over a period, the investor accumulates units of the mutual fund scheme. The value of the investment is determined by the number of units accumulated by the investor and the prevailing NAV of the scheme. If the NAV of the scheme increases, the value of the investment also increases, and vice versa.

What are the Uses of the SIP calculator?

SIP calculators are online tools that allow you to estimate the returns on your SIP investment over a period of time. Here are five uses of SIP calculators.

Estimating Returns

One of the most common uses of SIP calculators online is to estimate the returns on your investment. You can input the amount you want to invest, the tenure of the investment, and the expected rate of return, and the calculator will provide you with an estimate of the expected returns.

Comparing Investments

Another use of SIP calculators is to compare the returns on different investments. You can input the details of different mutual funds, such as the expected rate of return and the expense ratio, and the calculator will provide you with an estimate of the returns on each investment.

Planning Investments

Finally, SIP calculators online can be used to plan your investments. You can use the calculator to determine the amount you need to invest each month to achieve your financial goals.

Choose the right investment

With a SIP calculator, investors can compare different investment options and choose the one that suits them best. The calculator allows users to input the investment amount and the duration of the investment and provides them with the expected returns for different investment options. This helps investors make informed decisions about their investments.

Understand the impact of inflation

Inflation can significantly impact the returns on investment. A SIP calculator takes into account the impact of inflation and provides investors with the real rate of return. This helps investors understand the true value of their investments and make better investment decisions.

Wrapping Up

SIP calculators can be useful for investors to plan their investments and set realistic goals. By using the calculator, investors can get an idea of the amount they need to invest and the duration of the investment required to achieve their financial goals. Overall, SIP calculators are a handy tool for investors who want to invest in mutual funds through the SIP route and want to get an idea of the returns they can expect from their investments.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How to Choose the Best ULIP Plans to Invest in 2022?

What is Equity Mutual Funds: Meaning, Types & Benefits

What are the Best Investment Options for Beginners or Amateur Investors in India?

Top 10 Investment Plans Available in India

Why are ULIPs One of the Best Tax Saving Instruments?

यूलिप के फायदे (Benefits of ULIP in Hindi)

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

What is Money Management? Definition & Example

What is ULIP Plan, and How Does it Work?

Rate of Interest on Different Investment Plans in India

ULIP Plan as a Gift

ULIP vs FD - Which is Better and Why?

Why Should Parents Invest in Endowment Plan?

Early Investing and the Power of Compounding

Things to Know Before Buying an Endowment Plan

How to Manage Inheritance Money?

What are the Best Investment Options for Students in India?

Benefits of ULIP as a Child Insurance Plan

What is a Child Money Back Plan, and How Does it Work?

Best Investment Options to Cover Your Child's Education

How to Use Recurring Investment Strategies to Build Wealth?

Why Should I Invest in ULIP?

Endowment Plan vs Fixed Deposit?

Why Are ULIPs Called Flexible Investments?

ULIPs: Suitable for all

A Step-by-Step Guide: How To Make An Investment Plan?

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

What is the Time Value of Money (TVM)?

How To Diversify Portfolio In 2023?

What is a Credit Score and How Can Insurance Help You Improve it?

How Much Wealth Can You Create from ULIP in 10 years?

Got a Salary Hike? Here’s How to Plan your investment further

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Everything You Must Know About ULIP Riders

Which are the Best ULIP Plans in India for Children?

How to Plan your Investment to Achieve Periodic Financial Goals?

How Can ELSS Funds Help You Save Tax & Create Wealth?

Long Term Savings Plan - Best Savings Investment Plans in India

What are Tax-Deferred Savings Plans?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Here's Why it's a Good Time to Explore ULIPs as an Investment

How to Plan Your Child's Education - A Step-by-Step Guide

Is the ULIP Policy Surrender Value Taxable?

Planning for Your Child's Higher Education? Explore These Investment Options

Savings Plan for Grandchildren

Best Investment Plans for Children - Secure Your Child's Future

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Building wealth through regular investing

Customising investments to manage your wealth

Best One-Time Investment Plans in India

What are the Best Investment Options For Females?

What is Direct Investment and its Types?

Difference Between ULIP and Endowment Plan?

What are the Best Investment Options for Young Adults?

What Is Financial Planning?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

The lesser-known facts about ULIP policy that customers should be aware of?

Short Term and Long Term ULIP Plans for Wealth Creation

Why ULIP is Better Investment for Long-Term Wealth Creation?

Planning Financial Goals and Objectives of Financial Planning

8 Charges in ULIP That You Must Know

Are Gains from ULIP Sale Taxable?

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

8 Important Tips to Maximize Gains with ULIP Investments

Learn About Safe Investments with High Returns in India

What are Some of the Safest Investment Options in India?

Difference Between Passive and Active Investing

Four Financial Lessons from The Vedas on Living Life to The Fullest

Why Do You Need A ULIP Plan - All You Need To Know

Investments Options to Buy a house in India

ULIPs Investment – A Boon or Bane?

Creating a second source of income with life insurance

How to Increase Net Worth Along with Family Protection

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

What is the Importance of Saving Money?

यूलिप के फायदे और नुकसान क्या हैं?

What are Financial Assets & their types?

Safe Investment Options with High Returns for FY 2018-19

What are Index Funds and How Do They Work

Are Investment Returns Guaranteed in a ULIP?

Best Investment Options in India in 2022

Difference Between Guaranteed Savings Plan and ULIP

How Do One-Time Investment Plans Work?

What are Mutual Funds?

Asset Allocations in ULIP - Know the Top Benefits

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Why Should You Invest in Term Insurance And ULIP?

How To Track ULIP Performance?

How to Cancel ULIP Policy?

How to Start Saving Money in 10 Simple Ways?

ULIP NAV Meaning & How is the Return Calculated in ULIP

How Does an Endowment Plan Work?

What are loyalty additions, and how do they work in a ULIP?

How To Invest Money In ULIP?

How to Manage Your Portfolio Like a Professional?

What is a Savings Plan and What are is Benefits?

6 Important Tips to Maximize Your Gains with ULIP Investments

What is Compound Interest, And How Do I Calculate it?

How to Make Your Financial Portfolio?

How to Plan Savings from Salary?

Top 5 Principles That Need to be Followed for Wealth Creation

ULIP as an Investment for Your Child

How to Fulfil Your Financial Goals in the Next 10 Years?

Investment Options for NRIs in India

What is ULIP and Its Benefits?

Do You Know the Difference Between Savings and Investment?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Can ULIP Policy be Transferred?

वित्तीय संपत्तियां और उनके प्रकार

What is NAV in ULIP, and How is it calculated?

Are Money Back Policies Helpful? A Complete Guide

How to Calculate Your ULIP Returns?

Is This The Right Time To Invest In ULIP? Why or Why Not?

What is ULIP Renewal?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

Top 10 Investment Strategies to Create Wealth

Importance of Portfolio Management

Which is Better – FD, Mutual Fund, SIP, or ULIP?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Top 5 Investment Options in 2022 for Healthy Returns

Successful Financial Planning for Urban Women

Can ULIP Help in Achieving Short-Term Financial Goals?

Receiving regular payouts at various stages of life

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Which is a Better Investment - Mutual Funds Or ULIP?

What are the Advantages and Disadvantages of ULIP?

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Corporate Bonds: Meaning, Types & Benefits

Different Types of Endowment Plans

4 Benefits of ULIP Fund-Switching Feature

What's Better for Your Child's Education? Child Plans or Mutual Funds?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

Factors Affecting Stock Markets

ULIP Benefits You Can Avail from Early Investing

What are the Best Short-Term Investment Plans with High Returns?

Learn About Safe Investments with High Returns in India

Why Should You Build an Emergency Fund?