SIP Calculator

MF SIP Calculator

This Sip Calculator allows you to calculate the amount you will accumulate on your monthly investment.

Less than 2 Years, Generally associated with Lower Returns and Lower Risk

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Frequently Asked Questions

A systematic investment plan, or SIP, is a method to invest in mutual funds. The SIP allows you to invest a fixed amount in your choice of funds at a regular interval. You can select the frequency to invest daily, weekly, monthly, quarterly, and so on with an SIP. The minimum period to stay invested in an SIP is usually defined by the funds, and the maximum period can be perpetual. After the minimum investment time period, you always have the option to stop investing and encash the invested amount with returns.

You have the option of auto-renewal when you are investing through an SIP. If you choose that option, the SIP will automatically renew after the expiration of the time period. If you have selected the option of a perpetual SIP or a time period until cancellation, your SIP will not discontinue until you cancel it. 

There are seven different types of SIP: 
  • 1. Regular SIP: The most popular ones are those where you decide on the amount you want to invest in mutual funds for a fixed period of time. 
  • 2. Top-up SIPs: they are also known as step-up SIPs. They give you the advantage of topping up an amount on your existing SIP at a fixed interval. This is a smart option to increase your investment amount with your increased earnings. 
  • 3. Flexible SIP: As the name suggests, these SIPs allow you to change the amount and frequency of the SIP, hence giving you the freedom to change your investment plans. However, you must notify your fund house at least 10 days before your next SIP due date.
  • 4. Perpetual SIP: If your regular SIP has no set time period, it will become a perpetual SIP. To stop the investment, you have to cancel the SIP.
  • 5. Trigger SIP: The investor only makes investments in mutual funds through these SIPs during a specific event. It can be a price- or time-specific event. In a price-specific event, the investor can define the price limit, or NAV, of the funds. When it reaches that certain amount, the investment will start. For example, in the case of a time-specific event, the investor can choose to start the investment when there is a market correction in the selected fund. These options cater to investors who regularly monitor the market and possess a comprehensive understanding of how tactical investments can impact their objectives.
  • 6. Multi-SIP: This SIP allows you to invest in multiple mutual funds of the same fund house through one SIP. For example, if you wish to invest Rs 5,000 in mutual funds, you can divide this amount into 2–3 mutual funds. This will allow you to diversify in one go, as well as save you the hassle of managing multiple individual SIPs.
  • 7. SIP with Insurance: This SIP provides you with additional insurance coverage. In the event of the untimely death of the investor, the nomiee will receive an additional lump sum payment. The coverage amount varies depending on the amount of capital invested through the SIP.

As per the regulatory guidelines, you can start an SIP investment for as little as Rs 500. There is no upper limit on the amount you can invest. 

An SIP operates similarly to a recurring investment, automatically deducting an amount from your bank account and investing it in the mutual fund of your choice. The fund house periodically allocates a certain number of mutual fund units to you once you deposit the amount. The allocation of number of units depends on the Net Asset Value (NAV) of the fund. The SIP works on two broad principles: 
  • 1.Rupee Cost Averaging: This allows you to manage the market's volatility by averaging out your investments. When markets are rising, you will receive fewer units; when markets are falling, you will receive more mutual fund units. As a result, it reduces investment risk and ensures you stay invested at the lowest average cost per unit, which benefits you in the long term.
  • 2. Compounding: If you invest for the long term, you can reap exponential benefits. The capital invested and the returns generated from the investment get reinvested, hence yielding more returns every time as your investment amount increases. Hence, the earlier you start investing, even with a smaller amount, you will reap more benefits. 

Yes, you can opt for a top-up SIP or a flexible SIP to change the investment amount. Some mutual fund houses and distributors also allow you to change the SIP amount by skipping your next payment. Please speak to the concerned representative. 

The maximum tenure to stay invested in an SIP can be perpetual, i.e., you can remain invested as long as you want or the fund exists. However, the fund house advises reading the mutual fund information and trying to stay invested for the minimum period to reap the optimal benefits.

A systematic transfer plan, or STP, allows you to transfer your funds periodically from one fund to another. For example, you can start investing in debt funds to build a corpus, and once your risk-taking ability increases, you can move the investment amount to an equity mutual fund. 

Yes, after your investment's minimum tenure, you can withdraw your SIP. The fund house specifies the minimum investment tenure, which varies from fund to fund.

Mutual Funds for SIP to invest in 2024

Trending Funds

FOF | Dir-G

19.90 %

3 year

Returns in CAGR as of NOV 23,2023


FOF | Dir-G

19.90 %

3 year

Returns in CAGR as of NOV 23,2023


FOF | Dir-G

19.90 %

3 year

Returns in CAGR as of NOV 23,2023


FOF | Dir-G

19.90 %

3 year

Returns in CAGR as of NOV 23,2023


FOF | Dir-G

19.90 %

3 year

Returns in CAGR as of NOV 23,2023