What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan or SIP is an investment strategy where you invest a fixed amount at regular intervals (typically monthly) into a mutual fund or other investment option.
Benefits of SIP
- Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility.
- Power of Compounding: The earlier you start, the more time your money has to grow.
- Financial Discipline: Regular investments help build a habit of saving.
- Flexibility: You can start with small amounts and increase over time.
How to Use This Calculator
- Enter your Monthly Investment Amount in rupees.
- Set the Expected Annual Return Rate (average returns in equity mutual funds range from 10-12%).
- Select your Investment Period in years.
- Click "Calculate SIP Returns" to see projected growth and returns.