HDFC SIP Calculator

HDFC SIP Calculator

A Systematic Investment Plan (SIP) helps people invest a predetermined amount regularly in any mutual fund scheme. Instead of making a lump sum investment, SIPs enable people to make contributions regularly, promoting disciplined investing.

Once you have decided to go for a SIP, it’s essential to know the returns as well. You can do that using the HDFC SIP Calculator. The online tool assists you in projecting the future value of your investments using just a few inputs.

How does the calculator for HDFC mutual funds operate?

The HDFC SIP Calculator is a free, user-friendly tool to help you plan and manage your mutual fund investments. It instantly calculates the future value of your SIP investments by considering your monthly investment amount, investment tenure, and estimated return rate.

However, it’s important to note that the results are estimates and may not match the actual returns provided by the mutual fund scheme you invest in.

Formula to calculate HDFC SIP returns

The formula used by the HDFC SIP calculator to estimate returns is —

FV = [P x R x (1 + i)n-1/i] x (1 + i)

Where:

• FV is the future value of your investment
• i is the compounded rate of return
• R is the expected rate of return
• P is the SIP amount
• n is the number of instalments

Benefits of investing through SIP

• SIPs promote regular investments, ensuring financial discipline and helping in the accumulation of wealth over time.
• Investing through a SIP eliminates the need to time the market by using rupee cost averaging, buying more units when prices are low and fewer when prices are high.
• SIPs enhance wealth growth exponentially over time as the investment period increases, due to the compounding effect.
• SIPs offer the flexibility to start and stop investment as and when required.
• Investments can be started as low as ₹100 per month.

How to use HDFC SIP Calculator?

Launch the HDFC SIP Calculator.

• Fill in the SIP amount in the ‘Monthly Investment’ section.
• Then enter the ‘Investment Period.’
• Finally, fill in the rate of return in the ‘Expected Return’ section.

The calculator will display the total invested amount, wealth gained (profits), and expected amount.

How can the HDFC SIP Calculator help you?

Control over investments: The HDFC SIP calculator helps you determine the ideal monthly investment amount, ensuring your strategy aligns with your financial goals.

Managed by experts: Managed by skilled portfolio managers, HDFC Mutual Funds aim for high returns with minimized risk. The SIP calculator helps you optimize your investments accordingly.

Efficiency: Easily estimate future investment value and adjust contributions as needed to stay on track.

Accuracy: The calculator provides precise, real-time projections, eliminating errors associated with manual calculations.

Free of cost: The HDFC SIP calculator is free to use and can be used as many times as you want to compare different schemes and returns.

Detailed chart: The calculator also provides a detailed chart that illustrates the potential annual return after computing returns.

Examples of HDFC SIP growth

Example 1:

Monthly Investment: ₹6,000

Duration: 15 years

Expected Annual Rate of Return: 13%

Total Investment: ₹6,000 × 12 months × 15 years = ₹10,80,000

Future Value: Approximately ₹33,34,088

Example 2:

Monthly Investment: ₹12,000

Duration: 10 years

Expected Annual Rate of Return: 13%

Total Investment: ₹12,000 × 12 months × 10 years = ₹14,40,000

Future Value: Approximately ₹29,60,168