DSP SIP Calculator

DSP SIP Calculator

Systematic Investment Plans, or SIPs, have gained popularity for their simplicity and convenience. By making small and regular contributions, you can gradually grow your investment portfolio. The DSP SIP offers a straightforward approach to building wealth gradually. Instead of making a one-time, large investment, or lump sum payment, SIPs allow you to contribute a set amount regularly.

If you choose to invest in DSP Mutual Funds, the DSP SIP Calculator can help you estimate your potential returns with ease.

By estimating the investment earnings, the DSP SIP Calculator enables you to manage the available funds to achieve your financial objectives.

How does the DSP SIP Calculator work?

The DSP SIP Calculator is an online tool that can help you estimate the returns from your SIP investments over time. The calculator quickly determines the estimated earnings using details like investment tenure, estimated yearly return rate, and the total amount of your investment into this online calculator.

In the case of the DSP SIP Return Calculator, this estimation is made based on the specific scheme’s historical performance.

The online tool facilitates enhanced financial planning by giving you an estimate of the possible earnings.

Formula to calculate DSP SIP returns

The online DSP SIP calculator can estimate the maturity value of your investments over the selected period using a straightforward formula:

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

In this formula:

• FV represents the future value or the amount you will receive at maturity.
• P stands for the principal amount you invest when you start the SIP.
• i is the monthly rate of return, calculated as the annual rate of return divided by 12.
• n indicates the total number of months or years you plan to invest.

Benefits of Investing through SIP

• By encouraging regular contributions, SIPs help build a strong savings habit.
• You can start investing with as little as ₹100 per month.
• They aim for long-term wealth accumulation through the power of compounding.
• SIPs also provide the flexibility to adjust or pause investments as necessary and ensure risk is spread across various assets through diversification.
• Finally, the strategy of rupee cost averaging helps ease the effects of market volatility.

How to use the DSP SIP Calculator?

• Launch the DSP SIP Calculator.
• Enter your monthly investment amount, the duration of your investment, and your expected rate of return.
• The calculator will then display details such as the total investment made, wealth accumulated, and its projected future value.
• Adjusting the monthly investment figure can help you tailor the outcome to meet your financial goals.

How can the DSP SIP Calculator help you?

• Estimate monthly contributions: Knowing the expected payment at maturity helps you estimate the monthly SIP amount required to reach that figure.
• Accurate investment calculations: It provides precise calculations for your total principal investment, accumulated profits, and projected final value based on the parameters you set.
• Evaluate scenarios and track progress: It allows you to evaluate different investment scenarios and track your progress towards your financial objectives.

Examples of DSP SIP growth

Example 1:

• Monthly Investment: ₹4,000
• Duration: 14 years
• Expected Annual Rate of Return: 11%
• Total Investment: ₹4,000 × 12 months × 14 years = ₹6,72,000
• Future Value: Approximately ₹15,84,864

Example 2:

• Monthly Investment: ₹7,200
• Duration: 5 years
• Expected Annual Rate of Return: 12%
• Total Investment: ₹7,200 × 12 months × 5 years = ₹4,32,000
• Future Value: Approximately ₹5,88,022