HSBC SIP Calculator

HSBC SIP Calculator

Systematic investment plans (SIPs) allow you to build wealth over time by making small, consistent investments. You can use the HSBC SIP calculator to plan out your investments. The calculator assists you in selecting the best mutual fund scheme per your financial objectives and planning your approach accordingly.

How does the HSBC SIP Calculator work?

An HSBC SIP Calculator is a useful online tool for determining how much money you could earn from a Systematic Investment Plan in mutual funds.

The calculator demonstrates how your money may grow over time by evaluating information such as how much you intend to invest each month, the estimated rate of return and the investment duration.

This can help you organise your money and select the most appropriate investing strategy according to your objective.

Formula to calculate HSBC SIP returns

The online SIP calculator employs a simple formula to provide a predicted 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/12

n = Number of months or investment duration

Benefits of investing through SIP

• Promotes regular investing for disciplined savings.
• SIP investments reduce the risk of market fluctuations through rupee cost averaging.
• Compounding promotes long-term wealth growth.
• You don’t need a large amount to start investing. Investment can be started at as low as ₹100 per month.
• SIP offers flexibility to pause and rebalance investments as necessary.
• Diversification spreads risk across multiple investments.

How to use the HSBC SIP calculator?

To use the HSBC SIP Calculator, follow these steps:

• Open the online calculator.
• Choose your monthly investment amount.
• Choose the investment period.
• Enter the expected rate of return.

With these details, the SIP calculator will show you the total investment, any gains you might make and the total value of your investment after the investment period.

How can HSBC SIP Return Calculator help you?

• Shows potential growth from regular investments.
• Estimates return based on investment amount and time.
• Assists in managing finances and setting goals.
• Allows comparison of different investment options.
• Tracks progress toward financial targets.

Examples of HSBC 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: ₹4,32,761
• Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
• Future Value: Approximately ₹10,32,761