Mutual Fund SIP Calculator

Author : Kanika Shelatkar | Published On : 15 Sep 2021

Financial calculators have simplified investment in mutual funds. These tools help one calculate the estimated return on investment over a period of time and how much to save from today onward for potentially reaching desired financial goals like child education plan etc.

These online calculators can be accessed in a few clicks by investors and help them plan for SIP or lump sum, retirement and child education, etc. One such useful calculator is the Mutual Fund SIP Calculator. It asks for the amount you wish to invest at certain frequency like monthly, weekly or quarterly etc along with the time period for which you wish to continue the SIP investment. Then, with your expected return rate it shows the estimated corpus you can accumulate with regular and disciplined investing.

For example, if Sanjay invests in monthly SIP of RS. 10,000 over 10 years, he can accumulate a corpus valued more than Rs 23 Lakhs, assuming the return rate to be 12%. In this case, the invested amount by Sanjay over 10 years is only Rs 12 Lakhs. If he invests in the chosen fund in a disciplined way, the mutual fund SIP Calculator helps him understand the corpus he can potentially accumulate. This helps Sanjay in planning monthly finances and how much he can keep aside after expenses to fund his financial goals.

SIP Calculator gives one the advantage of planning without the hassle of manual calculation. It is fast, easy and can be accessed online on popular financial websites.

Another useful calculator for investors today is the child education plan calculator. Education today has become expensive, especially if one plans to send their child abroad for higher studies. Parents need to plan their finances and investments in advance for funding the dreams of their child. Disciplined investing, planning and help from a financial advisor can help them to reach their desired goals with time.

A quick and convenient way of planning this is through the child education plan calculator. This tool asks for the current cost of education of the child, his/her age, expected rate of return, and rate of inflation. You can choose to view the cost with or without the inflation, although it is better to factor in inflation, as it helps to understand the correct future cost.

Once you have entered all the required data, the child education plan calculator shows you the accurate future amount for which you need to start saving for your child’s education. The tool helps you understand the required corpus, and you can then start investing. Once you get an estimated cost with the tool, you can plan if you want to make lump sum or SIP Investment. While doing child education plan, the cost of education should be calculated basis the profession your child is planning to pursue, if he/she wants to go abroad or not, tuition fees, living cost etc.

Child education plan calculator works like the mutual fund SIP calculator. Only difference is that in the child education plan calculator you are asked for the current cost of education basis which the future cost is predicted accounting the inflation. In a SIP calculator also, if you want to plan your SIP based on goal, then by entering the current value of the goal, the future value can be predicted accounting inflation. SIP can be started based on the future value.

Timely planning helps investors invest early and thus patiently reach their desired financial goals over time in a disciplined manner. SIP calculator and child education plan calculator helps to stimulate this process with ease and convenience