Systematic Investment Plans or SIPs are now among the most regular means of accumulating wealth over the long term. Investors can accumulate a humongous corpus with the help of systematic saving and benefit of compounding by investing a fixed amount of money on a monthly basis on mutual funds. No matter whether you are an experienced investor or a new investor, SIP calculators such as SBI SIP calculator and Bajaj SIP calculator can assist you in investing your fund judiciously.
SIP calculators are easy online calculators which calculate immediately to figure out the probable returns on your SIP investment. By showing assumptions on the basis of such inputs as the amount to be invested every month, investment tenure in years, and expected annual return, SIP calculators assist investors in planning long-term financial requirements in the right direction. Let us know more about these calculators and how they are going to simplify your investment.
What is a SIP Calculator?
A SIP calculator is an internet-based application that assists the investor in calculating the return on SIP investment after x years. It applies mathematical concepts in finding the future value of investment with respect to input. Inputs are rate of investment each month, time period, and return on investment each year.
For instance, widely used SIP calculators like SBI SIP calculator and Bajaj SIP calculator are meant to inform investors about how much financial growth can be obtained through SIPs of company schemes’ mutual fund schemes. While the fundamental idea of every SIP calculator is the same, each of them has some exclusive features which are appropriate for company schemes.
How Does SIP Work?
Systematic Investment Plans enable investment in mutual funds at regular intervals. Rather than investing lumpsum, money is invested in instalments month after month. The Systematic investment feature uses Rupee Cost Averaging as well as the advantage of compounding for building the wealth over a period of time.
Suppose that you are investing ₹10,000 as a periodic deposit every month for 20 years with an assumed rate of interest of 12% per annum. You can simply calculate the future amount using an SIP calculator so that you can be in contact with returns after so many years.
Using the SBI SIP Calculator
SBI SIP calculator offers instant and easy access to the investors looking for SIP planning with State Bank of India Mutual Funds. We shall keep the use of the tool simple by following example:
– Monthly Investment: ₹10,000
– Investment Tenure: 20 years
– Assumed Return Annually: 12%
Calculating the same, corpus after 20 years will be approximately ₹68,90,000. It is calculated on the formula of future returns:
Future Value = P × [(1 + r/n)^(n × t) – 1] × (1 + r/n) / (r/n)
Where:
– P = Monthly amount invested (₹10,000)
– r = Annual rate of return (0.12 or 12%)
– n = Times invested in a year (12 for monthly SIPs)
– t = Time in years (20 years)
The SBI SIP calculator considers all these and gives us instant results.
By the Bajaj SIP Calculator
Likewise, the Bajaj SIP calculator serves the investment needs of similar investors who would be keen to invest in the Bajaj Finserv mutual fund scheme. The easy-to-use calculator interface assists investors to input their investment needs and receive instant quotes.
– Monthly Investment: ₹15,000
– Investment Horizon: 15 years
– Assumed Rate of Return: 10%
Using the same formula to calculate the future value, the sum would be approximately ₹49,80,000. It shows how much one can accumulate with even regular small investment over an extremely crucial period of time.
SBI SIP Calculator vs Bajaj SIP Calculator comparison
Bajaj SIP Calculator and SBI SIP Calculator work on the same principle of providing accurate and timely estimates of SIP investment. The apps differ slightly according to the investors’ selected plan:
– SBI SIP Calculator: Is exclusively for SBI mutual fund schemes and is used best in presenting scheme information most available in SBI. It’s perfect for the individual who prefers to enjoy banking facilities but has SBI as his or her finance ally.
– Bajaj SIP Calculator: Designed with a particular perspective towards Bajaj Finserv mutual fund schemes, most widely utilized by the investors who are attracted towards the brand name of Bajaj in finance.
Being an investor, using the method of their preference financier holds calculations of their respective plans, and hence better estimates can be generated.
Key Benefits of SIP Calculators
- Easy Calculation: SIP calculators are not done manually, and therefore investors’ time and energy are conserved.
- Adjustable Inputs: Investors may input like investment amount, tenure, and expected return.
- Long-term Planning: Individuals can plan long-term objectives such as retirement, child’s education, or home buying with real-time estimation.
- Risk Analysis: Investors can see how market fluctuations affect their corpus by adjusting expected levels of returns.
Disclaimer on SIP Investments
Note that SIP calculators provide reasonable approximations of returns to be gained but do not consider actual factors such as volatility in the market, tax, or other regulatory elements. Investors are required to take a well-informed decision after sufficient research and personal consultation with expert financial advisors. Mutual fund investment involves the risk of the market, and all the pros and cons of trades in the Indian financial market need to be balanced.
Summary
SIPs or Systematic Investment Plans are among the best ways to build wealth, particularly for long-term investors.
Either with the SBI SIP calculator or the Bajaj SIP calculator, you make life easy for yourself with calculations and you obtain valuable facts regarding your possibilities of your investments growing. For example, ₹10,000 per month for 20 years with an interest rate of 12% can invest ₹68,90,000 through the SBI SIP calculator. Again, ₹15,000 for 15 years of investment with an interest rate of 10% can become around ₹49,80,000 through the Bajaj SIP calculator. Such calculators are decent guide charts for the investors who wish to plot their investments into the financial goal. But forget that returns on mutual funds to a great extent rely on market forces and other extraneous factors. Always exercise precaution and make diligent research before investing your capital in the Indian financial sector.