IDFC SIP Calculator

IDFC SIP Calculator

Systematic Investment Plans (SIPs) help you build wealth gradually through regular, small investments. By using the IDFC SIP calculator, you can strategise your investments and choose the most suitable mutual fund scheme to achieve your financial goals. This tool aids in planning and optimizing your investment strategy.

How does the IDFC SIP Calculator work?

The IDFC SIP calculator is a useful online tool that estimates potential returns from a Systematic Investment Plan (SIP) in mutual funds. By entering details such as your monthly investment amount, expected return rate, and investment duration, the calculator shows how your money might grow over time. This helps in planning your finances and selecting the best investment strategy to achieve your goals.

Formula to Calculate IDFC SIP Returns

The online SIP calculator uses a simple formula to generate a forecast value for your assets over the specified 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.
• Rupee cost averaging reduces market volatility.
• Compounding promotes long-term wealth growth.
• Begin SIP investments with little ₹100 per month.
• The ability to pause and rebalance investments as necessary.
• Diversification spreads risk across multiple investments.

Advantages of IDFC SIP Calculator

• Project future returns based on investment amount and duration.
• Helps plan finances and adjust monthly budgets.
• Allows comparison of different investment scenarios.
• Estimates performance over a set period.

How to use the IDFC SIP calculator?

To use the IDFC SIP Calculator, follow these steps:

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

When you enter these numbers, the SIP calculator will show you how much money you will invest in total, any gains you might make and the total value of your investment after the investment period.

How Can IDFC SIP Return Calculator Help You?

• Estimate Growth: Displays the possible increase from monthly deposits.
• Future Returns: Calculates expected returns depending on investment and time.
• Budget planning assists with money management and goal setting.
• Scenario Evaluation: Compares several investment options.
• Track Progress: Monitors progress toward targets.

Examples of IDFC 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