Before you invest your money in various SIPs, you must estimate the returns on these investments so that you can make the most of them. Here it's good to use a systematic investment plan calculator. With it, you need not depend on any tedious manual calculations but can check the returns on mutual funds online. That being said, here are the top 3 reasons to use such a SIP calculator.
Generates Accurate Results
You only need to fill in the following details to calculate returns with the help of the SIP calculator:
- The amount of SIP instalment you want to set aside
- The number of instalments
- The expected rate of return annually
- Whether you wish to invest in debt funds or equity shares, liquid funds, mutual funds, etc
After entering these details, the calculator will show you accurate results right away. Just with a single calculation, you can check the total amount of investment, total returns on your investment, and the full maturity amount. The results are accurate since they are supported by the right formula set in the system. So, there are no chances of mistakes as with a manual calculation.
Easy and Fast to Use
You can find SIP calculators online on various websites. Certain websites allow you to use the calculators free of charge. The interface is designed such that you don't need any additional details besides the duration of your investment, the amount of monthly investment, and the rate of return. That is why you will find the systematic investment plan calculator user-friendly. Even a beginner investor can use it without any problem and learn everything associated with his/her SIP investments. Besides, since the calculator functions digitally, it is both easy and fast to use.
Helps Make an Informed Decision about SIP Investments
The best benefit of using a SIP calculator is that it gives estimated returns on various investments. This can then help you predict different choices for investment. If you change the tenure or amount of your investment, you can see online how your returns on the invested mutual funds may be affected. In a way, this guides you to opt for the ideal amount and duration of your investment such that you can earn the maximum profits through your returns. Thus, you can invest in a way suitable to achieve your long-term financial goals.
The calculator also lets you adjust the rate of interest. This further helps you predict the potential returns on various SIPs which have a specific duration and amount of investment. After checking the returns on different choices of SIP, you can compare them and go for the investment option most suitable for you. Then you can go ahead and choose the best SIP with which you can expect high performance of your investment and great returns.
Thus, the systematic investment plan calculator can assist you in rationally choosing a SIP investment.
Now that you see the multiple advantages of using a SIP calculator, make sure to use it online before investing in a mutual fund or other funds.