SIP Return Calculator

About Fintra’s SIP Calculator

What is SIP is the question on everyone’s mind even by the investors who have been investing for a long time. So here’s the guide on basics of SIP & SIP Calculator to help you achieve your financial goals.

What is SIP?

SIP or Systematic Investment Plan is a financial tool that helps to create wealth by enabling an investor to invest fixed amount regularly (weekly, monthly, quarterly) in a mutual fund scheme. Since here the investing is done in regular intervals the amount of risk associated to market instability is reduced effectively.  

You can think of SIP as a type of Recurring Deposit for mutual funds with fund houses and brokers promoting this to help people grow their money. Recurring Deposit gives fixed returns to investors whereas SIP returns depend upon on a range of market factors. Benefits of SIP investment over lump-sum investments are numerous.

What is SIP Calculator?

Fintra’s SIP calculator is a simple tool to compute returns made on your SIP primarily on your mutual fund investments. This is an approximate return and the actual return may vary due to tax, exit loads, expense ratio, etc. Fintra encourages you to invest in mutual fund via SIP as it brings in financial discipline and inculcates the habit of saving. Most importantly you will benefit from the power of compounding when you invest in Mutual Funds via SIP.

Steps to use SIP Calculator

1. Enter the amount you are comfortable with investing monthly. Most of the SIP plans will start with a minimum of Rs 500 with some varying to Rs1000 a month.
2. Estimate the rate of return on your investment. You can use historical return for reference but keep in mind that future returns may vary depending upon market conditions
3. Enter the period you are willing to invest for. The amount of time you want to continue investing and it ranges from 6 months minimum to 12 with different SIP plans.
   
   

Benefits of SIP over lump-sum investments

1. No need to speculate and see for the time of investment in the market.
2. Power of compounding – small amount invested regularly will result to a larger return.
3. You can start with as low as Rs 500 sum of money to invest.
4. Automated payments – need not to worry about paying money each month
5. Market risk reduced – monthly investment ensures money is not affected by market volatility

You can also customize your SIP. Many fund houses allow investors to invest monthly, bi-monthly and fortnightly. They are step-up SIP’s too which allow an investor to increase the sip amount periodically. 

FAQs about SIP and SIP Calculator

Is SIP a mutual fund?
SIP is not a mutual but is an investment style. It allows you to invest in a mutual fund of your choice in a periodic style. Most people opt for monthly SIP

What happens on missing SIP payment?
Since SIP is auto-debited from your bank account, you do not need to worry about missing the SIP payments. Even if you were to miss any SIP payment due to insufficient balance or any other reason, there is no penalty or fees.

However, your SIP might get cancelled if you miss a few SIPs

How do I reduce/increase my SIP amount?
To modify any existing SIP, simply login to your AMC website and stop the existing one and restart a new SIP with a higher/lower amount depending upon your needs 

Can I cancel my SIP?
You can definitely cancel the SIP by
a) Login to the Mutual Fund house’s website and cancel SIP option is available under upcoming transactions
b) Alternately, you can login to your bank website and remove the Mutual fund Biller under Payee/biller section. This will stop Mutual Fund house in auto-debit feature from the bank account
c) For offline process, you can visit the nearest branch or connect with your relationship manager to have the SIP cancelled.

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