SIP Calculator

A SIP (Systematic Investment Plan) calculator is a tool that helps investors estimate the potential future value of their investments made through systematic and regular contributions over time, considering factors such as the investment amount, frequency, and expected returns.

This tool is designed to help investors understand how their investments are likely to grow over time and how much money they can expect to receive at the end of the investment period. However, it is important to note that the accuracy of SIP Calculator depends on a number of factors.

Take an example where you invest Rs 2,000 per month for a tenure of 24 months. You expect a 12% annual rate of return (r). You have i = r/100/12 or 0.01. You get Rs 54,486 at maturity.

While SIPs can be a beneficial investment option for many people, it is important to note that no investment is entirely risk-free. The safety of SIPs depends on various factors, including the underlying investment instrument, market conditions, and the investor's risk tolerance.

But as the market keeps falling and you continue to invest your average cost fall. You will be buying more units at a lesser cost. The primary advantage of SIP is to lower the average cost of buying mutual funds. SIPs work well in a falling market condition or volatile markets.