Why is it important to have a SIP Calculator?

The SIP calculator is very helpful in mutual funds schemes. It helps you calculate the estimated returns you can earn on the investment made. The minimum amount you can invest depends upon fund to fund, but you can start with SIP with a minimum amount of 500. Specific free units are available in SIP, and you can redeem your SIP accordingly. Some funds have guidelines based on exit policy.

So they might charge you whenever you redeem the amount. It solely depends upon the fund’s exit policy. Adding a cherry on top, the SIP Calculator is so easy to use, and there is nothing complex to understand. Over some time, your SIP calculator’s subscription may expire. You just need to fill in a renewal form and submit it to renew it.

Axis Midcap Fund and UTI-Flexi Cap Fund are highly recommended mutual funds for SIPs for investment purposes. You don’t need to arrange any documents for SIP initiation. Your PAN card, address proof, photograph, and checkbook statement would do enough. It is pretty easy to use and also simple to open. 

Let us know about the benefits of SIP in detail:- 

The total cost is averaged out

We all know that the market revolves around certain phases, such as depression, boom, recession, etc., and moves in a circle where bearish and bullish phases are experienced back to back. If the market is in a bearish stage right now, then SIP will help us know that more units have to be allotted in this situation. Whenever the market transforms from bearish to bullish, you can earn healthy returns.

Power of Compounding

The wealth or returns generated are not only through the investments but also on the returns generated from the gains. The annual returns are fifteen percent if someone has invested one lakh rupees via SIP in a mutual fund scheme. Now, one lakh would be transformed into one lakh fifteen thousand by the end of the year of investment. The returns you will earn in the following years will be based upon one lakh fifteen thousand and not only one lakh. Therefore, it is referred to as earning gains on gains.

Disciplined form of investment

People generally have the habit of spending a specific amount from their earnings and then saving whatever is left. But this habit should be reciprocated. People should fix up their budgets. They should first save a specific amount from their earnings and then spend whatever is left behind. People generally need a push to be able to do this, and SIP provides that push. When you know that you have to invest this much regularly, you can save it up. 

So these are the top three benefits of having a SIP calculator. Choosing the right mutual fund scheme to invest in is a big task. But you have all of it under a check with 5paisa. It helps you invest in the most beneficial investments to earn higher rates of returns. SIP calculator is a must if you want to play smart in the investment arena.