SIP Calculator

A Systematic Investment Plan (SIP) is an investment strategy where you invest a fixed amount regularly in mutual funds or other investment instruments. It helps in building wealth over time through the power of compounding.

Key Benefits of SIP:

• Rupee Cost Averaging: Reduces the impact of market volatility
• Discipline: Encourages regular investing habits
• Compounding: Your returns generate more returns over time
• Flexibility: Start with small amounts and increase gradually

SIP Formula:

The future value of SIP is calculated using: FV = P × (((1 + r)^n - 1) / r) × (1 + r)

• P = Monthly investment amount
• r = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
• n = Total number of months

Tips for Successful SIP:

• Start early to benefit from compounding
• Increase your SIP amount annually
• Stay invested for the long term
• Choose the right mutual funds based on your risk profile
• Review and rebalance your portfolio periodically