The mutual fund industry in India is booming. It has witnessed a fourfold increase in the past decade alone, catapulting from Rs. 5.83 trillion to Rs. 24.25 trillion according to the data released by Association of Mutual Funds in India. Although it’s still low compared to several other comparable economies, Indians are slowly waking up to the benefits of mutual funds. At this nascent stage, there is still widespread confusion and general unawareness surrounding these investment instruments.
One of the first things that a prospective investor must be able to figure out the amount of return their investment will yield. An SBI SIP calculator can be immensely helpful in that regard.
SIP or Systematic Investment Plan is a mode of investing in mutual funds in a planned manner. It’s similar to an RD, in that you deposit a small amount every month towards a mutual fund scheme. As opposed to lumpsum investments where the investor puts in a significant amount on a plan at one go, SIPs are much more strategic and carry a lesser risk.
There are several advantages of using an SBI MF SIP calculator, some of which are mentioned below.
The SBI bank SIP calculator utilises 4 variables to arrive at the anticipated returns after the investment period. These variables are inserted in the following formula for the purpose of calculation.
FV = [P x R x (1 + i) n-1/i] x (1 + i)
The variables in this equation represent the following.
|i||Compounded rate of return|
|R||Expected rate of return|
|n||Number of instalments made|
This complex calculation can take several minutes to perform. If you want to check the expected returns for different variable values, it could take hours. The SIP investment calculator SBI enables you to manage the task efficiently and in a quick time.
For example, suppose you make a SIP investment of Rs. 2000 for the duration of 2 years with expected returns of 12%. The calculator will instantly provide you with the value of estimated returns.
Amount invested – Rs. 24,000
Expected return amount – Rs. 25, 619
Wealth gain – Rs. 1619
Given below is a list of projected SIP returns for various investment durations based on these variables.
|Duration||SIP Amount||Future Value|
|1 year||2000||0.3 Lakhs|
|5 years||2000||1.6 Lakhs|
|8 years||2000||3.2 Lakhs|
|10 years||2000||4.6 Lakhs|
|12 years||2000||6.4 Lakhs|
|15 years||2000||10.1 Lakhs|
|18 years||2000||15.3 Lakhs|
|20 years||2000||20 Lakhs|
|22 years||2000||25.9 Lakhs|
|25 years||2000||38 Lakhs|
The SBI SIP plan calculator available at the Groww website is quite straightforward to use and easily accessible by anyone. Just put in the variables in their respective slots. The calculator will provide you with the result instantly at the bottom.
The SBI SIP calculator India is a practical tool for the financial planning of MF investors. There are several advantages of using this calculator-
Mutual funds in general and SIPs, in particular, are growing in India with each passing day. There are over 1,000 schemes in the market right now that an investor can choose from. Invest today after consulting with the SBI SIP calculator.
“Looking to invest? Open an account with Groww and start investing in direct Mutual Funds for free”
There is no cap on the amount you can invest in SIPs. However, it is advised to keep the amount low.
There are pros and cons of both these investment approaches. SIPs are financially less taxing on the investor but require a higher degree of involvement. Lumpsum investments are a one-time thing, but the risk is slightly higher than SIPs.
All mutual funds are subject to market risks. There is always a chance that their performance would be below-par. It is, therefore, advised to avail professional assistance for investments.
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