Calculate the future value of your SIP investment
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that the SIP calculator are for illustrations only and do not represent actual returns which may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.
Frequently asked questions
Can I estimate my SIP return online?
Yes, estimating SIP returns online is quite straightforward with the help of a SIP calculator. By entering details such as the monthly investment amount, investment period, and expected rate of return, these online tools provide a detailed forecast of potential investment growth.
How much is Rs. 5,000 for 5 years in SIP?
If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.
What if I invest Rs. 3,000 a month in SIP for 5 years?
If you invest Rs. 3,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 67,459 and the estimate future value of your investment will be Rs. 2,47,459.
How much is Rs. 1,000 for 5 years in SIP?
If you invest Rs. 1,000 per month through SIP for 5 years, assuming 10% return. The estimate total returns will be Rs. 18,082 and the estimate future value of your investment will be Rs. 78,082.
How much is Rs. 4,000 per month in SIP for 10 years?
If you invest Rs. 4,000 per month through SIP for 5 years, assuming 11% return. The estimate total returns will be Rs. 80,988 and the estimate future value of your investment will be Rs. 3,20,988.
What is the Interest Rate of SIP?
SIPs don't have a fixed interest rate as they invest in mutual funds, whose returns are subject to market fluctuations. The 'interest rate' in the context of SIPs refers to the expected rate of return based on the historical performance of the mutual fund.
How much can I invest in a SIP?
Investment in a SIP can start from as low as Rs. 500 per month, with no maximum limit. This makes SIPs accessible to investors with varying financial capacities, allowing them to invest according to their budget and financial goals.
What is the maximum tenure of a SIP?
There's no cap on how long you can maintain a Systematic Investment Plan (SIP); it's open-ended, with a minimum tenure of three years. However, starting October 1, 2023, the National Automated Clearing House (NACH) imposes a maximum tenure of 30 years from the date of issuance. Additionally, the mandate will require specifying the final collection date (end-date).
How can an SIP return calculator help investors?
An SIP return calculator helps investors by providing an estimate of the future value of their investments. It takes into account the monthly investment amount, tenure, and expected rate of return to calculate the maturity amount, enabling investors to plan their finances effectively.
What details are required to use a SIP calculator online?
To use a SIP calculator online, you will need to provide some essential information:
- Investment amount: The initial amount you plan to invest every time you make SIP contributions.
- SIP frequency: How often will you make your investments—monthly, quarterly, or annually?
- Expected return rate: The annual growth rate at which you expect your investments to grow.
- Investment tenure: The total period for which you plan to invest.
After entering these details into the calculator, it will estimate the future value of your investments. It will show you how much money you can expect to earn through your SIP.
Are there any upper limits to SIP investments?
Generally, there are no upper limits for SIP investments. Investors can choose to invest any amount that suits their financial capacity and goals. However, each mutual fund scheme may require a minimum investment amount. Hence, it is always advisable to check the specific terms and conditions of the mutual fund you are investing in.
What is the average rate of return on SIP?
The average rate of return on SIP investments varies depending on the type of mutual fund you choose. For large-cap equity funds, which invest in well-established companies, you can generally expect a return of 12-18% per year. Meanwhile, mid-cap equity funds, which invest in medium-sized companies, can offer a return of 14-17% annually. At the same time, if you prefer investing in a long-term debt-based fund, which is less risky, the expected return is lower and usually hovers around 6-9% per year.
What is the minimum rate of return in SIP?
The minimum rate of return on SIP investments depends on the type of fund. For large-cap equity funds, the lowest expected return is around 12% per year, while mid-cap equity funds can offer at least 14% annually. On the other hand, for long-term debt-based funds, the minimum expected return is about 6% per year.
