Systematic Investment Plans or SIP are one of the best investment options in the current times. Easy initial corpus, no burdens of paying an amount in one single installment, high to average returns, mutual funds schemes have been gaining traction rapidly.
Deciding on the mutual fund’s scheme to invest in the form of SIP is a smart investment move. Many mutual funds give an option of a diversified portfolio that ranges across multiple industries and funds. Ranging from pharmaceuticals, banking solutions, Information technology, energy and so much more, you can be sure that the fund is going into a balanced profile. Moreover, spreading the funds across equities, debts, securities et al. gives the much-needed hedging solution to the funds invested.
Every mutual fund scheme has a minimum investment amount which is deducted based on the mandates or standing instructions of the investor to the bank. It is more or less like a recurring deposit feature where the corpus is deducted quarterly or monthly depending on the instructions. This fund is then invested in SIP chosen by the investor on behalf of the bank in a single or across multiple mutual funds schemes.
The return of the SIP depends completely on the market performance. But how does one calculate the returns? How do you anticipate the final amount that you can redeem after investing it over a period? How long do you invest for? And how much do you invest for achieving your financial goals be it long term or short term? Putting an end to all these queries, here are a couple of rules that you can follow to have a generic idea of your investment and the final redeemable amount.
3 Ways to Systematic Investment Plans (SIP) Returns Online
1. Online SIP Calculators to Estimate the Returns On the Invested Funds
Multiple websites across the internet are flooded with the SIP calculators. Hassle free and simple to use; it can be used virtually by anyone. After you have invested in a particular mutual fund scheme, it becomes essential to keep track of its performance. That is when SIP calculators come handy.
But that doesn’t mean that you check the returns every day. Experts recommend that post-investment, it is suggested that you track the returns annually. In case you want to keep a frequent track of the returns, the duration can range from over a month to a particular quarter.
Additionally, you can narrow down the search to the particular fund and see how it has fared over a period of time. Just enter the name of the fund, category of fund, frequency of deposit; amount deposited in each instalment, start and end date of the SIP, and the tool calculates the entire return value for you on the current date.
2. SIP Compounding Calculations Made Simpler
Websites and mobile applications, nowadays have various planning tools which let interested investors decide the investment amount, financial goals and a final return value by entering the values. These tools in return suggest the name of the funds and amount that needs to be split across schemes for investment.
Even seasoned investors can have a tough time calculating the return amount accurately. This exposes them to fraud by mutual funds agents who charge a lump sum to estimate the details. However, online solutions have made it simple and convenient to avoid the former.
The online planner also allows the user to be guided through an interactive solution user interface to proceed and invest in the schemes through net-banking or other online banking portals eliminating the need for any physical interaction with potential financial managers or banks.
The entire return value is calculated via compounding the invested amount and gives a vis-à-vis estimated return.
3. Choosing A Scheme Has Never Been Easier
In case you still haven’t opted for a particular plan but are considering investing in one, choose from a range of investment planner tools that can give an estimated return value based on your monthly deposit amount.
The process is fairly simple. The calculator allows you to enter the returns that the investor desires and the tenure of investment. Based on these values, the online calculator searches the best schemes for the investment returns estimated along with the rate of interest desired annually and recommends it to the user.
It gives the novice investor an option to check the various schemes online or consult with their portfolio manager before investing the sum. Not only does it provide flexibility to the investor but also takes into account the historical data of the performing funds such that the losses incurred in the long term are balanced across the plate.
Online SIP calculators are the best possible tool that can be used by investors of all statures. With no prior financial knowledge, it is convenient, easily accessible and accurate. Nevertheless, the investors are bestowed with their own discretion to go ahead with the results obtained.
Author: Ajeet Sharma