One of the easiest ways to get close to accurate results of your existing mutual fund SIP (Systematic Investment Plan) investments is by using the online SIP calculator. The free and easy-to-use tool not only saves time for users but also gives them a fair idea about the potential that their investments hold. These calculators are easily accessible from anywhere and all mutual fund investors must use them and try to take full advantage of their availability.
Let us take a look at the different SIP calculators and how investors can use these to make an informed investment decision.
Basic SIP Calculator
Investors are not aware of the fact that their small SIP investments can snowball into a commendable corpus over the long haul if they continue investing in a systematic and disciplined manner. And if you want to witness the power of SIP investments you can take the help of the SIP calculator. The SIP calculator can show you the total investment sum, total interest earned, and the total maturity amount. To get these results investors need to input a few details in the calculator like the SIP sum, investment horizon, and expected rate of return.
SIP Need Calculator
Sometimes investors aren’t sure about the amount that they need to invest in mutual funds regularly so that they are able to get near to their ultimate financial goal. Such investors can take the help of this SIP calculator. To use this calculator and determine how much your monthly SIP sum should be, enter a few details in the widget like the total corpus that you want to accumulate, the number of years you have in hand to achieve that corpus, and the expected rate of return. This SIP calculator shall display the exact SIP sum that you need to invest every month to get to your goal.
Cost of Delay SIP Calculator
In case you want to know the cost of delaying your SIP investments you can use the cost delay calculator. Just enter a few details like monthly SIP investment, investment time horizon, expected rate of return, and delay period. The calculator will display the total value that the investor will lose if they delay their SIP investments for a certain duration. For example, you are investing Rs 5000 every month for 5 years and the expected rate of return is 12% and, you delay your investments by 1 year. The calculator will tell you that you would have earned Rs. 1.03 Lac if you did not delay your SIP investments.
SIP Advanced Calculator
What happens is that a lot of times one does not take inflation into consideration while calculating their ultimate financial goal. You might feel that right now you need Rs 3 crores to retire but what this amount is worth today will not be the same 20 years from now. Hence, Rs 3 crores may seem enough right now, but you may need twice as much. The advanced SIP calculator takes inflation into consideration and displays inflation adjusting returns. Just enter all the details that you would in a SIP calculator along with the expected inflation rate. The calculator will display the total returns on investment amount, maturity before and after taking inflation into consideration, and your total earnings.
These calculators may not take certain factors like expense ratio or exit load of a mutual fund scheme into consideration and hence, sometimes the actual returns may way from what the calculators showcase.
