SIP Calculator – Visualize Your Wealth Creation
Wealth creation is a marathon, not a sprint. A Systematic Investment Plan (SIP) is your steady pace in this marathon. It allows you to invest small, manageable amounts regularly in mutual funds, harnessing the power of the stock market without the need to time it.
Our SIP Calculator is a simple yet powerful tool. It helps you estimate the future value of your monthly investments. Whether you are saving for a child's education, a dream vacation, or a comfortable retirement, this calculator shows you exactly how much you need to invest today to reach your goals tomorrow.
The Magic of SIP: Why It Works
SIPs turn market volatility from an enemy into a friend.
Rupee Cost Averaging
When markets are down, your SIP buys more units. When markets are up, the value of your units rises. This automatic averaging lowers your overall cost.
Discipline
It forces you to save first and spend later. The money leaves your bank account automatically, ensuring your investment plan stays on track regardless of your mood.
Start Small
You don't need a lump sum. You can start building a multi-crore portfolio with just ₹500 or ₹1000 a month.
Frequently Asked Questions (FAQs)
What is the difference between SIP and Mutual Fund?
Mutual Fund is the investment vehicle (like a car). SIP is the method of investing in it (like driving). You can invest in a mutual fund via SIP (monthly) or Lumpsum (one-time).
Can I increase my SIP amount later?
Yes! This is called a "Step-up SIP" or "Top-up SIP." You can instruct the fund house to increase your SIP amount by a fixed percentage or amount every year as your income grows.
What happens if I miss a SIP payment?
Nothing drastic. The fund house will not penalize you. However, your bank might charge a penalty for insufficient funds (ECS bounce charge). If you miss 3 consecutive installments, the SIP might be cancelled automatically.
Is SIP safe?
SIP is a method, not a product. The safety depends on the mutual fund you choose. Equity funds carry market risk but offer high returns. Debt funds are safer but offer lower returns. SIP in a diversified index fund is generally considered a safe long-term bet.
Can I withdraw money from SIP anytime?
Yes, for most open-ended mutual funds, you can redeem your units anytime. The money usually hits your bank account in 1-3 working days. However, ELSS funds have a 3-year lock-in period.