A SIP is otherwise called as the Systematic Investment Plan. It is an investment vehicle that is
offered by the Mutual Funds to the investors. The investments are done in small amounts
periodically instead of lump sums. The money is auto-debited from your bank account and is
invested in a mutual fund scheme. It is a smart and hassles free way of investing money. The
frequency of the investment is usually weekly, monthly or quarterly. A SIP is a planned approached
towards investments and the main objective of the SIP plan is to shape up the habit of saving and
building wealth for future. To make the calculation thing easier, the SIP Calculators have come to
the rescue about which we are going to talk about. But before heading to know what are SIP
Calculators let us first understand what is a SIP, how does it work and what are its Benefits.
How Does It Work?
The Simple Investment Plan is a flexible and an easy investment plan. A fixed sum of money is
invested regularly in a mutual fund scheme. SIP allows one to buy units on a given particular date
of each month so that one can implement the saving plans for themselves. The SIP totally depends
on the market value. The market fluctuates in a tidal motion. Sometimes it's high and sometimes it's
low. In short, the market values vary from day to day and this variation affects the SIP investment.
Rather than the timing
of the market, investing every month will ensure that one has invested the
money at the high and at the low, and will make best out of the opportunity. An investor invests a certain amount in the scheme every month or quarterly depending on their
convenience through an auto-debit facility from the bank account and is invested in a specific
mutual fund scheme. The investor is allocated with a certain number of units based on the ongoing
market rate called as NAV or the Net Asset Value for the day.
ANet Asset Value is the calculation that determines the value of a share in a fund of a multiple
number of securities such as Mutual Fund, Exchange Trade Funds etc.
Every time you invest money, additional units of the scheme are purchased at the market rate and
then added to your account. Hence, these units are brought in different rates and investors benefit
from Rupee-Cost Averaging and Power Of Compounding.
Rupee Cost Averaging:
With unstable markets, the investors become doubtful about the best time to invest and try to guess
or analyze the situation of the market when it can perfect to make an entry. Well, the Rupee-Cost
Averaging helps you to opt out this guessing game. If you are a regular customer, then your money
will fetch more units when the price is low and less when the price is high. During a volatile period,
it will allow you to achieve a lower average cost per unit.
Power Of Compounding:
The famous Scientist, Albert Einstien quoted that, “The Compound Interest is the eighth wonder
of the world. He who understands it...earns it...he who doesn't pay it”.
Benjamin Franklin once wrote somewhere that, “Compounding is the stone that will turn all
your lead into Gold”.
Money is reproductive by nature. Compounding is a simple but yet a very powerful concept.
Because Compounding is similar to that of the multiplier effect. Basically, a compounding is a
long-term strategy. When you are investing in a scheme then, the compounding allows you to earn
interest on your principal and helps you to receive additional units. By doing such thing you will
earn returns on your return along with the Principal. When the principal is combined with the
income, then your investment will grow at an increased rate.
Benefits Of SIP:
The Benefits of Simple Investment Planning are as follows:
●When you invest through a SIP, you commit yourself to save regularly.
●Due to the Rupee Cost Averaging and the Power of Compounding the SIPs have the
potential to provide attractive returns on long-term investments.
●It is more convenient and hassles free mode of investment. You can request the bank to
facilitate the auto-debits from your account.
To calculate the Simple Investment Plan and make it less complex, SIP Calculators are introduced.
Simple Investment Plan Calculators:
The SIP Calculators are the next level of an advanced version of boosting the online process of
Investment planning. The SIP Calculators are the tools that are designed to ease out the calculations
of SIP and facilitate the user in knowing the amount to be invested regularly.
In this growing generation of technology, the people are so much addicted to getting all the results
instantly. The clients feel stuck when it comes to computing. The calculation of the Compound
Interest and determining the returns is not so easy for the investors who are new to the financial
field. SIP Planner is an online tool which provides a hassle-free investing experience to the customers.
This facilitates the customers to have an edge of smart planning as the calculations done through
the SIP is easy and convenient. The SIP Calculator is a freely available online tool for calculating returns for your Monthly SIPs in
monthly categories of mutual funds like large-cap funds, small cap funds, tax-saving funds and
much more. It is a user-friendly tool and can be used by anyone. The aim of inventing this
calculator is to attract the clients towards investment planning.
The SIP Planner: Three Step Process
The SIP Calculator provides the most accurate and simple features that make the SIP Planning easy
to implement. A mutual fund investment planner follows a three-step data input technique for
computing the amount required to gain some corpus and vice-versa.
●Enter the amount data: This is the very first step while computing the SIP. The first
column of the SIP Calculator inputs the amount which the client is willing to sacrifice on a
monthly basis. Every client has a different income structure so its the client's wish how
much money he wants to invest on that.
●Select the Tenure: The SIP is a long-term process, therefore, the SIP planner asks the
customer to input the duration of the investment. The reason for including this step for a
client is to make a decision for how long they want to continue investing.
●The rate of Return: This is the final step where the initialization of any investment takes
place. Through the SIP Planner, a client can adjust the returns of their investment. They are
free o select any rate of return which they want to earn for their investment. Therefore, by entering this these three precise values in the calculator you will be able to get
accurate and trustworthy returns. With which they will be able to judge the returns for their
Uniqueness Of A SIP Return Calculator:
The SIP Calculator is entirely a different tool. It is used to calculate and compute the investment
strategy for the clients in an easy and quick way. The SIP Planner requires three basic inputs that
are entered using a Graphical User Interface. Thus, the customers don't have to worry about other
factors as they only have to select the numbers. The values will automatically appear in their
respective boxes and also the result. Thus, these features of the SIP Calculator makes it very
unique than the other calculators. The SIP Calculators are not only helpful for the online clients but also beneficial for the Offline
Users also. The users can use the SIP Investment Planner and can make the best possible use of
their money and plan the investment wisely. Thus, it doesn't really matter whether you are offline or online, you can make the most of your money if you use the SIP Calculator wisely. Therefore, be a
smart investor and utilize the power of your money wisely by performing the investment
Benefits of A SIP Calculator:
●Swift In Planning: The objective of introducing such type of tool is to make the online
investors independent and to ease their tautness making online investment easy for the
●Saves Time Efficiently: The SIP Calculators can perform complex calculations within a
few seconds. The application is user-friendly. All you have to do is to enter some data that
is related to the investment and press the start SIP button and your amount will be calculated
in nano-seconds and the result is produced by the client in no time. Thus, using an
investment planning tool will cut your time and makes the calculation smooth.
●Perfect For People With No- Financial Background: This tool can be used by any person
of any background. Normal working class people who have no link with the financial
background or activity will have to first understand the basic formula and then they will be
able to do the calculation. The whole process will consume a lot of time, therefore, to
prevent these sorts of issues, SIP Tool is introduced. All you have to do is to put some basic
data values and the SIP tool will do all the work in the background.
●Accurate Results: The Financial experts came up with the idea of online SIP Calculators so
as to make the investors independent in making an investment decision. The increasing
practices of forgery and growing distress among the investors paved a way for developing a
system in which the client can make the investment decision from his/her comfort zone.
With the use of Online SIP Calculation, the investor can have an unhampered approach
Other benefits of the Simple Investment Planner are:
Introduction to the Use of Graphic User
Interface (GUI), No Technical Experts requires, Compact and Powerful.
Thus, a SIP Calculator is a very handy tool which allows the customers to make an optimum use of
their wealth and multiply their riches easily without any intervention. Thus, the SIP Planners
enables the users to be independent while investing and helps them to take decision wisely. Hence,
it is an essential tool for the online SIP investors and also for making the calculations for the offline
users as well.