A Systematic Investment Plan or SIP calculator is a financial tool used to calculate the wealth you can create by investing in SIP mutual funds. A SIP calculator is basically going to measure compound interest.
A Systematic Investment Plan or SIP calculator is a financial tool used to calculate the wealth you can create by investing in SIP mutual funds. A SIP calculator is basically going to measure compound interest.
It is in the simplest words a compound interest calculator. Investments like mutual funds go through periods of ups and downs based on the state of the market and the stocks or bonds in their portfolio.
A SIP allows you to invest across these periods of ups and downs in the market. This leads to a phenomenon called rupee cost averaging where a SIP allows you to:
• Buy more units when the market is down
• Buy fewer units when the markets are high
In the process, you may end up getting better returns than someone who just invested a lump sum in either the up or down market. This is reflected in the SIP returns.
An online SIP calculator ensures that you don’t have to pick up a pen and paper (or Excel sheet) to use the SIP returns formula. Instead, it uses the preloaded formula to help you visualise your returns.
M = P × ({[1 + i]^n – 1} ) × (1 + i)/i
The Cube SIP calculator is simple and easy to use because it uses a preloaded SIP formula so that you can focus on visualizing your returns than doing complex mathematics.
You have the option to input any investment amount that you desire in the field that says “How much will you invest monthly?” and then, you can use cool sliders to select the investment duration and returns.
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A SIP calculator can help you visualize the returns that you can potentially earn across time. Apart from that, a SIP calculator can help you in these ways:
1. Understand The Effort Required
A Systematic Investment Plan (SIP) requires you to invest diligently, generally, every month. The calculator will give you a direct snapshot of the monthly investments you’ll have to make in a SIP.
2. You + Investments = Goals
The Cube SIP calculator can help you determine how much you would need to invest to get to your goals.
3. Become A Disciplined Investor
Visualising your returns with the SIP calculator will motivate you to become a disciplined investor. You’ll have to ensure that there’s enough money in your bank account for the SIP to go through every month.
4. Wealth Coach Support
There’s another benefit to using Cube’s SIP calculator. You can contact a Cube Wealth Coach after using the SIP calculator to know how you can start a SIP in handpicked mutual funds.
Love what you see and want to get started? Download the Cube Wealth App.
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Love what you see and want to get started? Download the Cube Wealth App.
Love what you see and want to get started? Download the Cube Wealth App.
There are 4 broad types of SIPs that you can choose from in India. There’s a top-up SIP that allows you to add more money to your existing SIP investments. A flexi SIP allows you to increase or decrease your SIP payments.
Then there’s a perpetual SIP in which, as the name suggests, you can invest till perpetuity or 2099. Last but not least, there’s a trigger SIP that lets you start a SIP or add additional SIP payments based on triggers like a particular NAV or index level.
Cube gives you access to one more SIP. It’s known as a SuperSIP and it lets you adjust or skip your SIP payments. SuperSIP is only available on the Cube Wealth app. Here’s a snapshot of all 5 SIP types in India:
Love what you see and want to get started? Download the Cube Wealth App.
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