Mutual Fund SIP Calculator
SIP or Systematic Investment Plan:
A SIP is a practice of investing a consistent rupee amount in the same mutual fund scheme at regular intervals (say each month) over a set period of time. What this leads to is good, old-fashioned common-sense: you end up buying more of a mutual fund scheme when the price is low and buying less of the same mutual fund scheme when the price is high. At its core, a SIP is just a regular, automatic method of investing.
It is a hassle free and flexible mode of smart investing, where the investors themselves decide the amount to be invested regularly as well as the scheme to invest in./
The fixed frequency of investment relaxes the omnipresent need for the investors to time the market and is similar to saving schemes with regular recurring deposits.
The SIP returns are calculated in a slightly different way to lumpsum investments.
Since SIP purchases are staggered over several months or years, the no. of units you acquire are different for the same investment amount.
The total units you acquire are then multiplied with the latest NAV value of that scheme to calculate your latest returns.