SIP Calculator

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SIP Calculator

Systematic Investment Plan (SIP) is a kind of investment scheme offered by mutual fund
companies. Using SIP one can invest small amount peridically (weekly, monthly, quaterly) into a selected
mutual fund. For retail investors, SIP offers a well disciplined and passive approach to investing,
to create wealth in long term (using the power of compounding). Since, the amount is invested on regular
intervals (usually on monthly basis), it also reduces the impact of market volatility.

Benefits of SIP as compare to Lump sumps investment

  • You don’t need to speculate or focus on timing the market (which isn’t the right way for
    generating returns over long term)
  • Amount is invested on monthly basis, so there is little to no impact of market volatility
    (unit cost averaging)
  • Passive and automated (monthly installments can be deducted automatically) approach makes you more
    committed to guranteed saving/investment
  • It’s very flexible – you can create/update/cancel SIP anytime. Most of the funds starts
    as low as Rs. 1000 per month

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