Question 1

What is a SIP Calculator?

Accepted Answer

A SIP (Systematic Investment Plan) Calculator is a tool that helps you estimate the returns on your mutual fund investments made through regular monthly contributions. It takes into account factors like investment amount, expected returns, and investment duration to show you the potential wealth you can create.

Question 2

How does SIP Calculator work?

Accepted Answer

The SIP Calculator uses the compound interest formula to calculate returns. It considers your monthly investment amount, expected annual returns, and investment duration. The calculator shows you the total investment amount, total returns, and the final corpus you can expect to build.

Question 3

What is the minimum SIP amount?

Accepted Answer

The minimum SIP amount varies from fund to fund, but generally starts from ₹500 per month. However, it's recommended to invest a higher amount to benefit from the power of compounding and achieve your financial goals effectively.

Question 4

Is SIP better than lump sum investment?

Accepted Answer

SIP offers several advantages over lump sum investment: 1) Rupee cost averaging reduces the impact of market volatility 2) Regular investing builds discipline 3) Smaller amounts are easier to manage 4) Power of compounding works more effectively over time. However, the choice depends on your financial goals and market conditions.

Question 5

What is the expected return on SIP?

Accepted Answer

Expected returns on SIP investments vary based on the type of mutual fund. Equity funds may offer 12-15% returns over the long term, while debt funds typically offer 6-8%. However, past performance doesn't guarantee future results, and returns are subject to market risks.

SIP Calculator India 2025

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SIP Calculator Results

How to Use This Calculator

Step-by-Step Instructions

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