Systematic Investment Plan (SIP) Calculator
Investment Period
Monthly Investment Amount
Expected Annual Return
%
Years
yrs
Step Up
%
Expected SIP Return
Total Amount Expected
195,205.953
Total Amount Invested
150,000.000
Total Gain
45,205.953
Investment
Expected Return
| Periods | Investment Amount | Return on Investment | Balance Amount |
|---|---|---|---|
| 1 | 2500 | 20.83 | 2520.83 |
| 2 | 2500 | 41.84 | 5062.67 |
| 3 | 2500 | 63.02 | 7625.7 |
| 4 | 2500 | 84.38 | 10210.08 |
| 5 | 2500 | 105.92 | 12815.99 |
| 6 | 2500 | 127.63 | 15443.63 |
| 7 | 2500 | 149.53 | 18093.16 |
| 8 | 2500 | 171.61 | 20764.77 |
| 9 | 2500 | 193.87 | 23458.64 |
| 10 | 2500 | 216.32 | 26174.96 |
What is SIP?
SIP stands for "Systematic Investment Plan." It is a method of investing a fixed sum of money at regular intervals (such as monthly) into a financial product, typically mutual funds.
SIP is a convenient way to invest in mutual funds because it allows investors to make small investments at regular intervals instead of making a lump-sum investment. It enables investors to invest small amounts of money at regular intervals, regardless of market conditions. This helps to average out the cost of investment over a period of time, and also it allows investors to make use of the power of compounding.
SIPs are beneficial for those who want to invest in mutual funds but do not have a large amount of money to invest at once, or for those who want to invest regularly. It also encourages discipline in investing and helps to create a long-term investment strategy.
What is Step-Up SIP?
A Step-Up SIP is a variation of a regular Systematic Investment Plan (SIP) where the investment amount increases over time. It's a way to gradually increase the amount invested in a mutual fund over a period of time. The investor starts with a smaller investment amount and gradually increases it over a period of time, usually on a yearly basis.
The reason for using a Step-Up SIP is that it allows the investor to invest more money as their financial position improves. For example, an investor who is just starting out with a small income may not be able to afford to invest a large sum of money each month. However, as their income increases, they can gradually increase their investment amount through a Step-Up SIP. This way, they can continue to invest regularly and benefit from the power of compounding, without putting a strain on their finances.
Step-up SIP also allows the investor to take advantage of rupee cost averaging, which is a strategy that helps to reduce the impact of volatility in the market. It helps to reduce the average cost of investment over a period of time.
In summary, a Step-Up SIP is a convenient way to increase your investment amount over a period of time as your financial position improves and it also helps to reduce the impact of volatility in the market.