SIP calculator is very helpful in mutual funds schemes.It helps you to calculate the estimated returns that you can earn on the investment made. The minimum amount that you can invest depends upon fund to fund but you can start with SIP through a minimum amount of 500. There are certain free units available in SIP and you can redeem your SIP accordingly. Some funds have guidelines based upon exit policy.
So they might charge you whenever you will redeem the amount. It solely depends upon the fund’s exit policy. Adding a cherry on the top, SIP Calculator is so easy to use and there is nothing complex to understand. Over some time, your SIP calculator’s subscription may expire. To renew it, you just need to fill in a renewal form and submit it.
Axis Midcap Fund and. UTI-Flexi Cap Fund isa highly recommended mutual fund for SIP for investment purposes. Also, you don’t need to arrange any documents for SIP’s initiation. Your pan card, address proof, photograph and the statement of cheque book 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
All of us know that the market revolves around certain phases like depression, boom, recession etc. are experienced. Just like that, it 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 to know that more units have to be allotted in this situation. Whenever the market will experience transformation 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 as well. If someone has invested rupees one lakh via SIP in a mutual fund scheme and the annual returns are fifteen per cent. Now the amount of one lakh would be transformed into one lakh fifteen thousand by the end of the year of investment. The returns that you will earn in the following years will be based upon one lakh fifteen thousand and not one lakh solely. Therefore, it is referred to as earning gains on gains.
- Disciplined form of investment
People generally have this habit of spending the amount from their earnings, and then save whatever is left. But this habit should be reciprocated. People should fix up their budgets. They should firstly 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, SIP provides that push. When you know that you have to invest this much amount regularly, you will be able to 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 so that you can earn higher rates of returns. SIP calculator is a must if you want to play smart in the investment arena.