IIFL SIP Calculator

IIFL SIP Calculator

Systematic Investment Plan (SIP) is a practical method for growing your wealth steadily. Instead of committing a large amount at once, SIP allows you to invest a specific amount periodically. This approach promotes disciplined saving habits and minimises the stress of market fluctuations by spreading your investments over time.

How does the IIFL SIP Calculator work?

The IIFL SIP Calculator works by helping you estimate the future value of your SIP investments. To use the IIFL SIP Calculator, you need to just enter the expected rate of return, the tenure of your investment and the amount you intend to invest on a regular basis. The calculator then makes use of these numbers to estimate your investments’ potential maturity value, giving you an idea of how much your SIP might increase over time.

Formula to calculate IIFL SIP returns

To estimate the maturity value of your SIPs, the IIFL online calculator employs this formula: P x ({[ 1+ i] ^ n -1} / i) x (1+i)

Where:

• FV represents the future value, or the value upon maturity
• P is the principal amount
• i refers to the monthly interest rate
• n stands for the total investment period

Benefits of investing through IIFL SIP

IIFL SIPs offer a range of benefits for investors looking to build wealth:

• They promote regular investing habits, which help establish a disciplined savings culture.
• You can start with ₹1,000 monthly.
• By compounding your investments over time, IIFL SIPs aim to grow your wealth significantly.
• The rupee cost averaging method helps minimise the impact of market fluctuations.
• IIFL SIPs also provide the flexibility to pause or alter your investment strategy and ensure diversification across different assets to spread risk.

How to use the IIFL SIP Calculator?

Here’s how you can use the IIFL SIP Calculator:

• Start by opening the IIFL SIP Calculator.
• Then enter your monthly investment amount, the number of months you intend to invest, and the expected rate of return.
• The IIFL SIP Calculator will then display your total invested amount, the wealth accumulated and the estimated future value.

How can the IIFL SIP Calculator help you?

By using the IIFL SIP Calculator, you can enhance your financial planning efforts:

• Precise estimates: It helps you estimate the necessary monthly SIP contributions to achieve your target maturity value.
• Accurate values: The tool provides precise figures for your total investment, earned wealth on maturity and future value based on your input.
• Assess various scenarios: It also allows you to assess various investment scenarios and monitor your journey toward reaching your financial goals.

Examples of IIFL SIP growth

Example 1:

• Monthly Investment: ₹2,500
• Duration: 5 years
• Expected Annual Rate of Return: 11%
• Total Investment: ₹2,500 × 12 months × 5 years = ₹1,50,000
• Future Value: Approximately ₹2,01,000

Example 2:

• Monthly Investment: ₹5,500
• Duration: 5 years
• Expected Annual Rate of Return: 11%
• Total Investment: ₹5,500 × 12 months × 5 years = ₹3,30,000
• Future Value: Approximately ₹4,41,000