SIP CALCULATOR SIP refers to Systematic Investment Plan. They are provided by a mutual fund to the investors. It can be seen an investment vehicle that allows investors to invest in mutual funds periodically rather than lump sum. Under such a plan money is automatically debited from the investor's bank account and invested in mutual fund scheme. Investment period can either be monthly or weekly or quarterly. It is both smart and efficient and thus encourages people to save and build wealth for their future and the nation. SIP calculators can be used to calculate the periodic investment to be done.
UNDERSTANDING THE PLAN Under this plan, a fixed sum of money is required to be invested after every interval. The best thing about this plan is that you can select the duration of the investment. It is flexible and can be fixed by the investor ( which is usually monthly, weekly or quarterly. Investment period can be chosen on the basis of the convenience of the person. However, monthly investment is suggested under this plan because it ensures that one has invested money even in between market fluctuations. After selecting the time duration, money will be automatically debited from your account and invested in a specific mutual fund scheme. The investor will be provided with units depending on the market called Net Asset Value (NAV) for the day. ADVANTAGES OF SIP Some of the advantages of Systematic Investment Plan are:
WHAT ARE SIP CALCULATORS SIP is next level of online tool that has helped in boosting up the process of online investment. SIP calculator has been introduced to ease up the process of investing. It calculates what amount to be invested and when next to be invested. It also calculates the compound interest and the expected returns on large-cap funds, small cap funds, tax-saving funds etc. This tool is easily available online. Some of the benefits of an AIP calculator are: It is user-friendly and can be used by anyone, anytime. This tool is very useful For newcomers in the field of investments. Earlier people who were not from the finance background had to first understand the formula and then calculate the amount to be invested and the returns to be expected. With the introduction of the SIP calculator, this entire process has become a two-minute process. Another important benefit of the SIP calculator is that it provides accurate results. This feature is important not only because it gives away with the possibility of any mistakes that arise when calculations are done manually but it also eradicates any possibility of corruption and forgery. HOW TO USE THE SIP CALCULATORS The SIP calculator involves a three-step process whereby an investor is required to input their details in three steps to results on their returns, amount to be invested etc. These three steps are mentioned below in details: Step 1: In the first step the client is required to fill in the amount that he or she is comfortable investing every month. The income slab of every individual is different. Thus a person should put in only that amount in which he or she is absolutely comfortable. Step 2: In this step, the SIP calculator will ask for the duration of the investment. Usually, such investment involves weekly, monthly or quarterly investments on the part of the investors. This question asked so to make the client decide how long they would like to invest. Step 3: In this final step the investor can adjust their returns form their investment. They can select any rate of returns which they want to earn from their investment. Thus with the help of above three steps you can derive the accurate calculations which in turn will help in judging the returns. SIP calculators have not only allows investers to be independent but also helps them to take decisions wisely without any interventions.
0 Comments
Leave a Reply. |
Details
Rahul BhistFirst blog by the Bhist Archives
February 2018
Categories |