Planning can be one of your greatest traits. However, investment planning can be tricky for people, even experts. It should be rock-solid for improving your standard of living in the near future. While you keep track of your income closely, you might tend to overlook your investments. What many of us usually forget is that investment is also a part of financial planning!
Making a smart investment can actually work in your favour- It can make yours and your family’s financial future secure and stable. In fact, it ensures you and your loved ones have ample funds to live a fulfilling life without any financial worries and hassle. Although there are multiple investment options, such as Provident Fund, Equity Linked Savings Scheme (ELSS), and so on in the market, a SIP mutual fund investment stands out in particular!
A Systematic Investment Plan (SIP) is a wealth creation strategy that lets you (the investors) invest a predetermined amount in it at regular intervals- quarterly, monthly or annually. For instance, you can start investing in SIP mutual funds with a nominal amount of Rs. 1,800 every month. That means you merely have to save Rs. 60 every day.
Furthermore, you can dedicatedly continue investing Rs. 1,800 towards mutual fund SIP for the next 30 years. So, even if you gain a minimum return rate of 15 per cent on your investment, it will give you an estimated maturity amount of Rs. 1, 26, 17,677 at the end of 30 years. During this period of 30 years, your net investment will be Rs. 6, 48,000 while the earned interest will be Rs. 1, 19, 69,677.
Before you invest your hard-earned money in SIP mutual funds, it is crucial to understand how much returns it will generate. To help you with that, a SIP calculator comes into the picture! Using mutual fund SIP calculator is beneficial for many reasons. Out of which, we have listed down the top three reasons for your better understanding:
- Immediate Results
You don’t have to worry about calculating the returns manually anymore! Use a SIP calculator and get immediate results, in less than five minutes. All you have to do is search for the SIP calculator online and get started.
- Accurate Data
The accuracy of the results usually depends on the data you input. So, submit the correct details regarding your monthly investment amount, investment period, and expected return rate. Based on the details you provide, the tool will automatically calculate the returns.
- Smarter Investment Decisions
Since the online SIP calculator gives you a quick walkthrough of the returns that you can receive from your mutual fund SIP investment, you can plan your finances accordingly. Furthermore, it will encourage you to make smart investment decisions that help secure yours and your family’s financial future.
To sum it all up, SIP is an excellent way to start investing in mutual funds. It helps in inculcating a disciplined financial habit as well as accumulating a sizeable corpus for future security. So, keep investing regularly and build your wealth over time. Having said that, do not forget to keep an eye on your invested amount and returns with the help of a SIP calculator. Happy investing!