Baroda BNP Paribas SIP Calculator

Baroda BNP Paribas SIP Calculator

Systematic Investment Plans (SIP) allow you to build your wealth over time by making small investments regularly. A key aspect of investing is understanding the prospective returns that you will get at the end of the investment period.

This process is simplified by the Baroda BNP Paribas SIP Calculator which determines the projected income using details like monthly investment, rate of return, and tenure.

How does a Baroda BNP Paribas SIP Calculator work?

The Baroda BNP Paribas SIP calculator is an online tool that allows users to assess the possible profits from a Systematic Investment Plan (SIP) in mutual funds.

The calculator determines the projected income to facilitate enhanced decision-making as per your goal.

You can compare different scenarios by changing the investment amount, return rate, and investment period.

Formula to calculate Baroda BNP Paribas SIP returns

The online SIP calculator uses a simple formula to give a projected value of your investments over the selected period:

FV = P x ({[ 1+ i] ^ n -1} / i) x (1+i)

Here,

• FV = Future value (final payout at maturity)
• P = Principal investment while starting the SIP
• i = Annual interest rate (compound interest) in percentage
• n = Number of months or investment duration

Benefits of investing through SIP

• Encourages frequent investing for disciplined savings.
• Rupee cost averaging minimises the impact of market swings on your investment.
• Compounding leads to long-term wealth growth.
• Anyone can start investment through SIPs with as low as ₹500.
• It offers flexibility to suspend and rebalance investments as needed.
• Diversification helps spread risk across many investments.

How to use the Baroda BNP Paribas SIP Calculator?

To use the SIP calculator, follow these steps:

• Open the Baroda BNP Paribas SIP Calculator.
• Choose your monthly investment amount.
• Choose the investment period.
• Enter the expected rate of return.

The calculator will determine the entire value of your investment at the end of the tenure.

How Can Baroda BNP Paribas SIP Calculator Help You?

• Estimate Growth: It shows how regular payments can boost your investments.
• Future Returns: Estimates future returns depending on investment amount and duration.
• Budget Planning: Helps organise funds and set attainable goals.
• Scenario Evaluation: Analyse different investment scenarios.
• Track Progress: Monitor your progress toward financial goals.

Examples of Baroda BNP Paribas SIP Growth

Example 1:

Monthly Investment: ₹5,000
Duration: 5 years
Expected Annual Rate of Return: 10%
Total Investment: ₹5,000 × 12 months × 5 years = ₹3,00,000
Expected gain: ₹90,412
Future Value: Approximately ₹3,90,412

Example 2:

Monthly Investment: ₹5,000
Duration: 10 years
Expected Annual Rate of Return: 10%
Expected Gain: ₹4,32,760
Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
Future Value: Approximately ₹10,32,760