Mutual Fund Calculator: SIP or a systematic investment plan is an investment instrument that allows investors to invest the fixed amount at regular intervals in the mutual fund scheme. The interval can be a monthly, quarterly or half-year. So, those who do not have the number of lump sum for investment can invest in SIP mode for the long term and accumulate the amount that can meet its main investment objectives such as higher studies of children, child marriages, pension funds, etc.
For example, Ravi Ujjwal has a 6-year-old son and he is looking for an investment plan that can help him grow ₹ 50 lakh for his son’s study. He did not want to invest in the stock market directly because it was very difficult to assess the market situation at the time of withdrawal. Ravi wants to accumulate this wealth in the next 10 years because it will give him some breathing space ahead of his higher soul study.
Whether the investment destination is feasible or not; PANKAJ Mathpal, MD & CEO at Optima Money Manager said, “The investment objective is feasible but investors must be a disciplinary investor. When investors do not want to go for the stock market, which is right because it is difficult to speculate market conditions at the time of withdrawal, someone only has one option Another, which is a mutual fund that can provide a return on the average market performance during the investment period. And it can be started at any time. So, someone must go sip mutual funds for the next 10 years. “
However, PANKAJ Mathpal said that simple mutual funds in monthly mode may not help investors to fulfill their investment objectives because the number of monthly investment will be very high. However, annual step-up will help investors to store monthly gulp at the lowest level in the initial phase of investment.
On what must be an ideal annual step in someone’s sip; Kartik Jhaveri, Director – Wealth Management at Transcend Capital said, “Annual step-up which is ideally 10 percent is recommended for long-term investment but to meet ambitious targets with a monthly-monthly very possible, one can maintain 15 percent annual steps. Also.”
On how much return can be expected from a 10-year monthly sip, Cartik Jhaveri Transcend Capital said, “It’s hard to give the right number but someone can expect about a 12 percent annual refund to someone’s money after 10 years of SIP.”
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So, assuming a 12 percent annual refund and 15 percent annual SIP step-up, if an investor wants to accumulate ₹ 50 lakh in 10 years, he must start with a monthly mouthful of around ₹ 12,500. According to SIP Calculator, this monthly investment is ₹ 12,500 this will help investors to accumulate around ₹ 50.15,435. However, the two experts say that someone must start with ₹ 500 in someone’s monthly sip, because it will carry a risk-gift ratio for investors. Therefore, starting with the monthly sip mutual ₹ 13,000 with a 15 percent annual step-up will allow investors to accumulate ₹ 50 lakh in 10 years.