It is an investment scheme offered by mutual fund companies. Using SIP one can invest small amount peridically (monthly, quaterly) into a selected mutual fund and interns the amount will be invested at share market by the fund manger of a mutual fund company. 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.
This calculator helps you calculate the wealth gain and expected returns for your monthly SIP investment. You get a rough estimate on the maturity amount for any monthly SIP, based on a projected annual return rate.
Benefits of SIP
SIPs can be started with as little as ₹500 each month. you can choose the frequency as monthly or quarterly for investing. Some Mutual Funds also give the facility of Daily SIP.
Achieve your long-term financial goals as your investments are broken down into smaller, regular investments
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. 500 per month