Let’s see the projected returns using Groww SIP Calculator, to see how much your money grows in 20 years if you contribute 1000 Rs a month, assuming average returns of 10%. The total amount grows to Rs 7,18,259 due to the compounding effect. This also helps in making the most out of the investments by investing in the best and high-performing funds at regular intervals.

What are the Benefits of the Scripbox’s SIP Calculator?

1. You can refer to our complete guide on how to choose between SIP and lumpsum mode on investment.
2. One can start a SIP with very small investment say Rs 500 per month.
3. In a SIP, a fixed amount of money is debited from your savings or current bank on a monthly or quarterly basis & invested in your chosen mutual fund scheme.
4. It is suitable for anyone, is completely free of cost and can be used any number of times.

The investment amount approach is the most used one where the investor inputs the investment amount, return expected, tenure and step-up amount. The target amount approach uses the target amount the investor wants to achieve in the said duration to estimate the current investment required. Assume you are a working professional planning for your long-term financial goals like retirement or your child’s higher education. Now, to accomplish this, you decide to invest in a Mutual Fund using SIPs, which are simply monthly investments for the required duration of time. With SIP, your money is spread over time, and only some parts of your total investments face the risk of market volatility.

Returns from SIP Investment

However, if you withdraw after 36 months of investments, then the LTCG will taxable at the rate of 20% + cess + surcharge. From April 1st 2023, capital gains from debt mutual funds will be taxed as per the investor’s IT slab rate, irrespective of the investment holding period. Thus, the LTCG benefit is no longer available for debt mutual funds.

The SIP investment done through ELSS (Equity Linked Savings Scheme) offers maximum tax benefits up to 1.5 lakh rupees per year under section 80C. Set a target amount that you would require to fulfill that goal and continue the SIP till you reach that target. To understand what is SIP more easily, you can compare it to EMI or Equal Monthly Installments that you pay on a loan. You take an EMI route because you cannot make a payment for a purchase in one go. So, you split that amount into monthly payments and pay off the amount.

SIP Calculator

According to how much you want top 5 reasons why not filing an income tax return is a bad idea your final amount to be, you can select the appropriate amount to start an SIP with. You do not have to spend your time analysing the market movements or the right time to invest in. A perpetual SIP Plan allows you to carry on the investments without an end to the mandate date. You have to provide the renewal instructions at least 30 working days before the last SIP date. However, even if the SIP expires, you can renew it by providing the folio number of the SIP.

These funds also invest in companies of all sizes and across sectors. So you get a diversified portfolio which helps to keep risk in check. At the end of the day, you will be allocated the units of mutual funds depending illinois paycheck calculator 2023 on the NAV of the mutual fund. In the case of a perpetual SIP, there is no SIP end date so, you can continue making SIP investments as long as you like without any need to extend your SIP duration. In the case of other types of SIP, you can get in touch with the fund house or the customer care team of your investment advisor to extend the tenure of your current Mutual Fund SIP.

SIP can be the best investment option for you if you do not possess superior financial knowledge about the way the market moves. Understanding the different types of SIP will help you choose the right scheme as per your goals. Take for example you want to invest Rs. 1,000 per month for 12 months at a periodic rate of interest of 12%. Using a SIP calculator can help you predict the future value of your Mutual Fund investment. Let us look at an example to see how profit and loss statement vs balance sheet an SIP calculator might make this process easier.