You can start a SIP with an amount as low as Rs. 500 per month (Rs 100 per month in case of few schemes). SIP can help you achieve your goals and instil financial discipline. An investment tool that provides a systematic way of investing by keeping aside a predefined amount at periodic time intervals. These small portions of one’s money is then collected by mutual fund houses which form a pool of such accumulated funds.
The SIP calculator does not provide clarification for the exit load and expense ratio (if any). SIP or Systematic Investment Plan is an investment scheme offered by mutual fund companies in India to retail investor. It allows them to invest a small fixed amount step-by-step over a period of time instead of one time lump sums investment.
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Why to Invest in a Systematic Investment Plan?
Then set up your long-term and short-term financial goals. Once the goal is set then identify and evaluate the financial instruments you want to invest in and is suitable as per your risk profiling. Now implement your plan into action by starting the investment.
However, there is no assurance that the investment objective of the Scheme will be realized. The investment objective of the Scheme is to generate capital appreciation from a diversified portfolio of equity and equity related securities. SIPs offer major benefits like rupee cost averaging and Power of Compounding. Rupee cost averaging helps an individual to average out the cost of an asset purchase. In a SIP, the purchase of units is done over a long period and these are spread out equally over monthly intervals (usually).
Why Invest through SIP?
The total amount grows to Rs 7,18,259 due to the compounding effect. Suppose you want to invest in a mutual fund and you have set aside a sum of 1 Lakh Rupees to invest in the same. Now there are two ways in which you can make this investment.
- Once the goal is set then identify and evaluate the financial instruments you want to invest in and is suitable as per your risk profiling.
- Investors can opt for it and keep their investments intact.
- You get more units for the same investment amount when the markets go down.
Return for 2023 was 38.2% , 2022 was 12.8% and 2021 was 49.9% . DSP BlackRock Small Cap Fund is a Equity – Small Cap fund was launched on 14 Jun 07. It is a fund with Moderately High risk and has given 33 proven ways to monetize a website a CAGR/Annualized return of 18.3% since its launch. Return for 2023 was 41.2% , 2022 was 0.5% and 2021 was 58.9% . Kotak Small Cap Fund is a Equity – Small Cap fund was launched on 24 Feb 05.
How do SIP calculators work?
The SIP Calculator helps you save time from doing complex calculations. 1) The SIP investment calculator provides you with an overview of how your investments might grow after a certain period of time based on the value of your investments. You can find out approximately how much money you need to invest in Mutual Funds via SIP to earn the desired returns. This allows you to set various short-term, medium-term or long-term goals.
- By investing in a SIP, an investor gets more units when the Net Asset Value (NAV) is less and less units when the NAV is high.
- It is a fund with Moderately High risk and has given a CAGR/Annualized return of 17.2% since its launch.
- The particular intervals are either on a monthly or quarterly basis.A SIP averages your total investment cost throughout the investment.
- You can avail of the SIP top-up option at the time of subscription in SIP.
- You must enter the investment duration of SIP so that the calculator can show you the value of your investment over some time.
For example, if you enter a higher expected annual return, you could achieve your financial goals with a lower investment duration. You could enter a higher expected annual return if you intend to attain financial goals sooner than expected. However, it would be better to enter a reasonable expected annual return in the ClearTax SIP Calculator.
Stay Invested in Mutual Fund through SIP
The SIP strategy claims to lower down the overall investment risk by averaging out the cost of investment and adding the power of compounding to it. You may consider entering the expected annual return from SIP instalments in the ClearTax SIP Calculator. The calculator will show you the value of your investment at the end of the SIP tenure, based on the expected annual return from the investment.