SBI SIP Calculator

It is a financial tool used to calculate the future value of your SIP based on the investment amount, frequency, duration, and expected return.

Assuming an annual return of 12%, your ₹1,000 monthly SIP would grow to ₹81,104 in 5 years.

Using the SIP calculator is very easy and convenient to calculate the returns on mutual funds investments. You are required to enter several metrics to find the exact return, such as the investment amount, duration of the investment, frequency of the investment, and the expected returns.

The goal of the SIP calculator is to determine the monthly SIP investments in the mutual funds.

Returns depend on factors like market performance, fund manager strategy, and expense ratios. You can review the past performance of a fund to get an approximate idea of returns.

1. Small money can be invested:  Investors can start a SIP even Rs 500 in mutual funds, which is not possible in case you want to invest in shares. Shares of some of the listed companies trade at higher prices, which can't be owned by small investing directly with small amounts.
2. Disciplined investing:  SIP instil discipline into investors by committing to invest a predefined amount at regular intervals which is essential for building wealth in the long-term.
3. No need to worry about market volatility:  Investors receive more units when the NAV of a mutual funds fall and less units when NAV of mutual funds rise. Therefore, over a long period of time the cost of units to investors will be significantly lower despite ups and downs. This phenomenon is called Rupee cost averaging.
4. Flexibility:  Investors have the flexibility to decide the SIP amount, period and interval of SIP as per their convenience.
5. Offers diversification at small investment:  Investors can't diversify their portfolio with small investment surplus. But with mutual funds, they can get a diversified portfolio, even with investment of Rs 500.
6. Professional management of investments:  Mutual funds are managed by knowledgeable and disciplined fund managers. Investors generally don't have in-depth knowledge of investing.
7. Power of compounding:  Investors can stay invested in mutual funds for a longer period of time. Compounding is a phenomenon wherein over a period of time returns get added to corpus and this in return generates more return. This phenomenon leads to an exponential growth of corpus.

It depends on your financial goals. For instance, if you’re saving to buy a house, you can calculate the required SIP based on the future value of the property. There is no upper limit on SIP investments.

SIP allows you to invest a fixed amount regularly in a mutual fund. For example, investing ₹500 monthly can grow into a large corpus over time due to the power of compounding.

Below are the ways you can start SIPs on the INDmoney website.

1. Login
2. Go to Mutual Funds Page
3. Select a fund.
4. Click on ‘Start SIP’ button

Starting a new SIP in the same fund is the easiest way to increase the SIP amount in the fund. Below are the step to start a new SIP in the existing funds:

1. Login
2. Go to investments
3. Go to my mutual funds
4. Select a fund
5. Click on ‘Invest More’

Redeeming a SIP in the same fund is the very easy on INDmoney. Below are the step to redeem SIP amount in the existing funds:

1. Login
2. Go to investments
3. Go to my mutual funds
4. Select a fund
5. Click on ‘Redeem’

With auto-debit feature, firstly you don’t need to remember the debit dates as the bank account will get debited automatically on the date which you have selected for SIP. However, just in case for whatever reason the funds are not available in the bank account, you will miss one SIP. There is no penalty or any fee. Your SIP account remains active even if you miss one SIP date but after multiple misses, it gets cancelled.

The daily SIP calculator provides immense benefits. It helps users to estimate the future value of Daily SIP investments in mutual funds given a rate of return and time horizon.

Weekly SIPs will help the user to average out her cost in a better way, and navigate volatile markets in a smoother manner. It is suitable for users who wish to create long-term wealth in the market by staying invested for longer periods of time and with a higher frequency of investments. The user faces lower volatility, and generates potentially higher return in the market as compared to users with monthly SIPs. Hence, weekly SIPs could be an excellent alternative to monthly SIPs. 

Let us look at an example to understand this better. Mr X invests in mutual funds through weekly SIPs of Rs 5,000. Mr Y invests Rs 20,000 through monthly SIPs. Assume that the time horizon is one year. Here’s the difference between the two investments. 

FV in case of Mr X: Rs 2.75 lakh

FV in case of Mr Y: Rs 2.53 lakh

Notice that difference in amount for Mr X. This is because the total amount invested through weekly SIPs is Rs 2.60 lakh (52 weeks * 5,000), while that invested through monthly SIP is Rs 2.4 lakh (20,000*12). An additional investment of Rs 20,000 in the case of Mr X has yielded a higher return.