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SIP (Systematic Investment Plan) Calculator

Use our SIP Calculator to estimate your investment returns based on your monthly contribution, expected annual return rate, and investment period. This tool helps you understand the power of compounding and plan your financial goals effectively.

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly, typically monthly. This disciplined approach to investing helps you benefit from rupee cost averaging and build substantial wealth over time.

₹500₹100,000
1%30%
140
Total Investment ₹600,000
Estimated Wealth Gained ₹290,543
Final Amount ₹890,543

Key Benefits of SIP

  1. Disciplined Investing:
    1. Regular monthly contributions instill financial discipline and consistent saving habits.
  2. Rupee Cost Averaging:
    1. Invest fixed amounts regardless of market conditions, reducing the impact of market volatility.
  3. Power of Compounding:
    1. Earn returns on your returns over time, accelerating wealth accumulation.
  4. Low Entry Barrier:
    1. Start investing with amounts as low as ₹500 per month, making it accessible to everyone.
  5. Flexibility:
    1. Pause, increase, or decrease your SIP contributions based on your financial situation.
  6. Tax Benefits:
    1. ELSS funds offer tax deduction benefits under Section 80C with a 3-year lock-in period.
  7. Reduced Emotional Decisions:
    1. Fixed investment amount prevents over-investing during market peaks and under-investing during dips.
  8. Goal-Based Planning:
    1. Use SIP to systematically build corpus for specific financial goals like education or retirement.

Advantages

  • Lower Risk Through Diversification
  • Rupee Cost Averaging Protection
  • Consistent Wealth Building
  • Suitable for Long-term Goals
  • Automatic Investment Process
  • Easy to Start and Manage

Disadvantages

  • Market Volatility Impact
  • Returns Not Guaranteed
  • Requires Long-term Commitment
  • Opportunity Cost in Bull Markets
  • Fund Selection Complexity
  • Inflation Impact on Real Returns

SIP is a proven investment strategy that helps you build substantial wealth through consistent contributions and the power of compounding. Start your SIP journey today and take control of your financial future.

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