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10 Tips for using SIP return calculator in the best way

Systematic investment plans or SIP is a means to invest large sums of money without actually putting a strain on the monthly financial expenses and earnings of an individual. A SIP scheme has a predetermined period in which an investor invests a fixed amount of money at regular intervals.

SIPS help investors to grow money and is similar to other recurring deposits. The fixed amount that can be invested can start from as low as 500 rupees and the tenure from as low as 6 months. The SIP calculator can help you to track the project earnings of each and every SIP that you have invested in. The calculator essentially illustrates the worth of investment over time.

SIP calculator

The SIP return calculator is an efficient tool that helps you to generate the investment maturity amount within split seconds. All you have to do is to enter some of the details required. The calculator essentially eliminates middlemen who used to con their investors for their lack of knowledge and skill required to calculate the investment maturity amount. With this tool, the chances of falling prey to unrealistic promises made by agents are also bypassed.

Information needed for a SIP calculator:-

The SIP amount:-

The basic question that needs to be answered to set the premise of all future calculations is how much amount you are willing to invest or have already invested in SIP. You will need to pay this amount monthly and will depend on your risk appetite, your monthly salary, expenses, etc.

The tenure:-

For the SIP calculator to work, you will have to specifically provide the tenure during which you wish to make your SIP investments. This will help to set up an investment horizon.

In cases of ongoing SIP:-

There might be a chance that before stumbling on this article, you might have had opened up a SIP. In such a case, you need to mention how many months you have been investing in SIP. You need to specify the number of instalments already paid by you. If you have not paid any instalments, then you need to enter 0 (zero) as your input.

Expected rate of return:-

Please note that this should be the annual rate of return and not monthly rate of return. This is the prime motive of each and every move made by an investor, and every one of them seeks a high rate of return. Enter the rate of return that you wish to receive upon an investment.

The SIP return calculator allows you to input different rates of interest, thus aiding you to adjust your investment decisions and get a fair idea about how the scenario will be at various rates of returns. This will allow judging your returns on based on various factors of which rate of return will be one. Thus, the SIP calculator gives you more power and freedom by aiding you in making more informed decisions about SIPs.


About This Author


Shaheen ShaikhShaheen Shaikh
http://www.adrclinic.co.uk
Joined: April 29th, 2018
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