The major benefit of SIP over lumpsum investment is that one need not time the market as you invest systematically through both the ups and downs of the market so the returns that you generate is weighted average return. Ideally you should invest (whether in SIP or Lumpsum) based on your investment profile which includes current income, expenditure, age, risk profile and financial goals. Yes, one can miss the payment of SIP if the fund that you have chosen provides the facility to pause the payment. Tenure: In this column one should enter the time period (in years) for which he/she is willing to make the investment. Rate can be selected on the basis of the fund’s past track record. In this SIP calculator you need to put rate of return on per annum basis. Investment amount: In this column put the SIP amount you wish to invest regularly.Įxpected Rate of Return: Here, you need to put the rate that he/she is expecting for the investments made during the entire period. Investment Type: Select whether you choose to make SIP on monthly basis or yearly basis. It then processes these inputs to give you the total future value of investments and total earnings generated by your investment. SIP Calculator or the SIP Investment Calculator uses some variables as inputs. ![]() This means that you need not commit huge amount of money that is difficult to pay in future. One can start a SIP with very small investment say Rs 500 per month. So, your investment gets sufficient time to enjoy the power of compounding. With SIP one can stay invested for a longer period of time thus, your money stays invested and generates return over a long term. So, in SIP the investments are done over different market cycles and therefore you benefit from rupee-cost averaging factor. ![]() ![]() In SIP you invest money without speculating the market condition i.e. For SIP you will have to decide the investment amount, the SIP date and the scheme in which you want to invest. Systematic Investment Plan or SIP is the most disciplined style of investment in which a fixed amount of money is invested at regular intervals (yearly, quarterly, monthly).
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