SBI SIP Calculator – Calculate SBI Mutual Fund SIP Returns

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.

How can SBI mutual fund SIP calculator help you?

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.

  • It gives you a reasonably accurate estimate of your SIP returns. Since mutual funds are subject to market risks, the actual result may vary slightly.
  • SIP calculations are quite complicated to solve manually. Even if one is familiar with the formula, it can be quite time-consuming. The calculator can help you get accurate results in a matter of seconds.
  • Equipped with the results, you can do prudent financial planning for the future.
  • These calculators are exceptionally easy to use. You don’t require any subject matter expertise at all to use them.

The formula to determine SIP returns

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.

FV Future value
P SIP amount
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

How to use the SIP calculator online?

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.

Advantages of using SIP calculator

The SBI SIP calculator India is a practical tool for the financial planning of MF investors. There are several advantages of using this calculator-

  • It saves a lot of time and mental hassle.
  • The accuracy of these calculators is typically spot-on, enabling an investor to plan their future finances accordingly.
  • Being an online tool, this calculator can be accessed by anyone from anywhere. Financial planning on the go has never been easier.

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”

SBI SIP Calculator – FAQs

  • How much can I invest in a SIP?

There is no cap on the amount you can invest in SIPs. However, it is advised to keep the amount low. 

  • Is SIP better than lumpsum investment?

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.

  • Are high returns assured on SIP investments?

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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