Are you scared to invest in mutual funds, due to high risk factors? SIP is your answer. SIP stands for Systematic Investment Plan. It's a planned approach of investing small amounts in market funds on a periodic basis usually monthly or quaterly. SIP yields you better results over a long period of time as a result of compounding and by reducing the market risks arising out of one time investments.
SIPs have the potential to fight inflation, it also secures you from the market fluctuations. Your money is managed by the professional fund experts.
SIP Calculator is a tool that helps you determine the expected returns you will gain at the end of specific period at the expected rate of interest. An SIP calculator consists of 3 fields, your Monthly Installment, Expected Rate of Returns & Period Of Investment. On the basis of these, the calculator outputs the total returns you will earn at the end of your investment period.
SIPs work on the theory of compounding and rupee cost averaging. SIP calculator is your go to tool to plan your investments. Rupee cost averaging reduces the effect of fluctuations and usually gives a lower cost per unit than the average. Compounding lets you earn more over a long tenure. SIPs allow you to invest in small amounts periodically rather than huge one time investment.