Many prospective investors may assume that SIPs and mutual funds are the same thing. However, SIPs are just a method of investing in mutual funds, with the other option being a lump sum investment. A SIP calculator is a tool that helps you estimate the returns you can expect when investing your funds in these tools. A Systematic Investment Plan (SIP) involves investing a fixed amount of money in mutual funds at regular intervals. SIPs typically allow investments on a weekly, monthly, or quarterly basis.

A SIP calculator is a simple tool that gives individuals an idea of the potential returns on their mutual fund investments through SIPs. In recent times, SIPs have become one of the most popular investment options, especially among millennials.

These SIP calculators provide potential investors with an estimate of their mutual fund returns. However, the actual returns from a mutual fund scheme can vary due to factors like market fluctuations. The SIP calculator does not factor in the exit load or expense ratio (if applicable).

This tool calculates the wealth gain and expected returns from your monthly SIP investments, giving you a rough estimate of your maturity amount based on a projected annual return rate.

SIPs are often seen as a more profitable way of investing compared to lump sum investments, according to many mutual fund experts. They help investors stay financially disciplined and develop a habit of regular saving, which can benefit them in the long run.

Using a SIP calculator online is a valuable way to understand the estimated returns you'll earn after the investment period.

Some of the benefits of using SIP calculators include:

• Helping you decide how much to invest.
• Calculating the total amount you’ve invested over time.
• Providing an estimated value of your returns.

A SIP calculator uses the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i).

In this formula:

• M = Amount received upon maturity.
• P = Amount invested at regular intervals.
• n = Number of payments made.
• i = Periodic rate of interest.

For example, if you plan to invest Rs. 1,000 each month for 12 months at a periodic interest rate of 12%, the monthly rate of return would be 12%/12 = 1/100 = 0.01.

Thus, M = 1,000 × ({[1 + 0.01]^{12} – 1} / 0.01) × (1 + 0.01), which gives approximately Rs. 12,809 at the end of the year.

Note that the rate of interest for SIPs will fluctuate according to market conditions, which will affect your returns.

Using the SIP amount calculator from Sensex India is easy and quick.

Simply enter the monthly investment amount (the amount you plan to invest), the number of years you wish to stay invested, and the expected rate of return.

Once you input these values, the calculator will show you the estimated amount you will receive once your investment period is complete.

Sensex India offers a top-notch SIP calculator that provides the following advantages:

• Helps you plan your investment based on the amount and tenure.
• Calculates an estimate of the total value of your investments at the end of the SIP tenure.
• Delivers accurate results, saving you time compared to manual calculations.

The Sensex India SIP calculator ensures your savings portfolio aligns with your financial needs and objectives.