SIP Calculator - Calculate returns and learn how to invest in SIP

Some investors have a misconception about SIPs. When we talk about mutual funds, SIP always comes into the picture, and hence a lot of new as well as existing mutual fund investors have few misunderstandings surrounding it. Some investors feel that SIP and mutual funds are the same, but the truth is that SIP is simply a mode to investing in mutual funds and not mutual funds themselves. The other way to invest in mutual funds is by making a lumpsum investment, but if investing in mutual funds via SIP is on your mind then you can use the SIP calculator to calculate the total returns. While SIP is a simple and hassle-free way of investing small fixed sums regularly, an online SIP calculator can be used to calculate the total returns which one’s monthly SIP investments may generate over the long run.

SIP Calculator: A Free Online Tool

Any mutual fund investor who is investing in mutual funds via SIP can effectively use the SIP calculator to have a fair understanding of the total returns which their SIP investments may fetch at the end of their investment journey. A lot of young investors are commencing their mutual fund journey with SIP and an online SIP calculator becomes a tool for them to understand how much their SIP investments can help them earn. This can help investors plan their investment accordingly and help them understand the exact sum they must invest periodically to achieve their financial goals.

Having said that, the total returns from one’s mutual fund investments may vary from what the SIP calculator estimates as it doesn’t take certain things like exit load or expense ratio into consideration while calculating future returns.

How can the SIP calculator help investors?

Investing in mutual funds via SIP may prove to be feasible as it allows investors to invest small fixed sums periodically. Through SIP investing, one might be able to achieve future financial stability and financial independence. If you have a long term financial goal in mind, the SIP calculator might help you understand if your current investments suffice your investment objective or whether you need to redesign your investment portfolio to suit your financial goal. In case you aren’t investing enough the calculator will show how much money you need to invest regularly to get closer to your ultimate financial goal.

How to use the SIP calculator?

There are two ways to use the online mutual fund SIP calculator, here is the first way –

• Enter the sum that you wish to earn over the long term e.g. Rs. 50 lakhs, Rs. 1 crore
• Then enter the number of years/months you have in hand before you need the final sum e.g. 10 years/120 months
• Finally, enter the expected rate of return e.g. 8%,12%

The calculator will display how much one’s monthly SIP investments should be in order to achieve that goal. For example, if you wish to build a corpus of Rs. 10 lakhs in the next 5 years with an 8% expected rate of return, then you need to invest Rs. 13,610 regularly via SIP.

Here’s the second way to use the SIP calculator –

• Enter the SIP sum that you want to invest via every month e.g. Rs 6000
• Next, enter the duration you want to invest this amount e.g. 5 years
• Finally, enter the expected rate of return

 
The SIP calculator will show –

• The total invested amount
• The wealth created through investing

 
For example, a monthly SIP investment of Rs. 12,000 with an investment horizon of 10 years in a mutual fund with 12% expected rate of return will have –

• Rs. 14.40 lakhs as the total amount invested 
• Rs. 24.58 lakhs as total wealth created

How to invest in SIP?

If you are planning on investing in mutual funds via Axis Mutual Fund, follow these simple steps to start a SIP.
Let us assume you wish to invest in Axis Long Term Equity Fund.

1. Log on to https://www.axismf.com 
2. Hover on the ‘All Schemes’ tab and when you get a drop-down click on ‘Equity’
3. You will see all the equity mutual funds offered by Axis Mutual Fund
4. ‘Select Axis Long Term Equity Fund’
5. Click on ‘Start SIP’
6. Then Select the SIP amount, Tenure, SIP date, and Growth / Regular plan and click ‘Continue’
7. If you want to start investing right away, you can even click select the ‘Add Lumpsum’ feature
8. You can now start investing in Axis Long Term Equity Fund

SIP calculator can not only help investors with estimating future returns, but it can also help them instilling the discipline of regular investing.

                                                                                       Axis Long Term Equity Fund

                    An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.