When we invest, we always ask ourselves what the return will be. Unfortunately, what we think is right may not be true. How can we calculate the exact return on our investment? SIP calculator is a great tool to help you determine the most efficient way to calculate your return.
Everybody is familiar with the Systematic Investment Plan (SIP). This plan allows us to invest our money in diversified projects at regular intervals. Many of us owe this investment and many more are considering doing the same. Before you make any decision, calculate the potential return. The SIP calculator calculates the future value of your SIP investment. It is therefore a useful tool for helping you make an informed investment decision.
SIP allows you to invest in mutual funds by receiving periodic payments. Each scheme has a Net Asset Value (NAV), which is the basis on which units are allocated to investors. There are many terms and values that must be taken into consideration when calculating the return on SIP. We all know that inflation is increasing rapidly and depreciating the value of money. The time value of money must also be considered when calculating the SIP returns. To get an exact value, you should also consider the net present value (NPV) as well as the internal rate of returns (IRR).
The SIP calculator has built-in features such as the time value, NPV, and IRR. It provides accurate results. Even a layman can now calculate the expected returns on investment in SIP. This tool is very popular with current and potential investors. It’s used by all major financial institutions as a tool of assistance.
Two ways the SIP calculator can benefit you:
- First, we can calculate the monthly SIP investment payment that would be made upon completion of the tenure.
- It is possible to calculate how much we will need to invest each month to achieve the target or financial goals.
This tool makes it easy for investors to make better investment decisions and plan a beautiful life.
An SIP can make a fortune for investors. The SIP calculator tool will help you calculate it. It is obvious that planning a successful investment will be easier and more convenient if we know the exact value of the investment in advance. This tool is essential if you want to make an investment in mutual fund SIP.