SIP Calculator – Systematic Investment Plan Calculator
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds, fostering disciplined wealth creation. Our HSBC SIP Calculator helps you estimate the future value of your investments based on monthly contributions, tenure, and expected returns.
What is a SIP Calculator?
A SIP Calculator is an online tool designed to estimate the future value of your Systematic Investment Plan investments. By inputting your monthly investment amount, expected annual return rate, and investment tenure, the calculator projects the potential returns, helping you plan your financial goals effectively.
How Do SIP Calculators Work?
SIP Calculators use the compound interest formula tailored for systematic investments:
FV = P × [((1 + r)n - 1) / r] × (1 + r)
Where:
- FV = Future Value
- P = Monthly Investment Amount
- r = Monthly Rate of Return (Annual Rate ÷ 12 ÷ 100)
- n = Total Number of Months (Tenure in Years × 12)
The calculator takes your inputs, applies this formula, and displays the invested amount, wealth gained, and total future value, often with visual aids like charts.
FAQs
How much can I invest in a SIP?
You can start a SIP with as little as ₹100 per month, depending on the mutual fund scheme. There is typically no upper limit, but it’s wise to align your investment with your financial capacity and goals.
What is the maximum tenure of a SIP?
SIPs can run for as long as you wish, with no fixed maximum tenure. Many investors continue SIPs for 20–30 years or more to build substantial wealth, but you can stop or modify them as needed.
Are SIPs similar to mutual funds?
SIPs are not mutual funds but a method to invest in mutual funds. A SIP allows you to invest a fixed amount regularly (e.g., monthly) in a mutual fund, while mutual funds are investment vehicles pooling money to invest in various assets.
Can I modify my SIP amount?
Yes, most mutual fund providers allow you to increase, decrease, or pause your SIP amount, subject to their terms. You may also start a new SIP if significant changes are needed.
Do SIP allows only equity mutual funds investments?
No, SIPs can be used to invest in various mutual funds, including equity, debt, hybrid, and other types, depending on the schemes offered by the fund house.
What are the types of SIPs available?
Common types of SIPs include:
- Regular SIP: Fixed amount invested at regular intervals.
- Top-up SIP: Allows periodic increases in the investment amount.
- Flexi SIP: Vary the investment amount based on your cash flow.
- Perpetual SIP: Continues indefinitely until you choose to stop.
- Trigger SIP: Investments based on market conditions or events.
Can I renew a SIP?
Yes, if a SIP has a fixed tenure, you can renew it by contacting your fund house or distributor before it expires. Perpetual SIPs don’t require renewal as they continue until stopped.
Can I pause my investments in a SIP?
Yes, many fund houses allow you to pause your SIP for a specific period (e.g., 1–3 months) without cancelling it. Check with your provider for their specific policies.