Invesco SIP Calculator

Invesco SIP Calculator

Systematic investment plans (SIPs) allow you to build wealth over time through small but regular investments. You can use the Invesco SIP calculator to plan your investment.

The online SIP calculator assists you in estimating the future value of your investments by taking into consideration the amount invested, the interest rate, and tenure.

The calculator enables comparisons between different SIP plans to find the one best suited for you.

How does the Invesco SIP Calculator work?

The Invesco SIP calculator is an online tool designed for estimating the future value of your Systematic Investment Plan in mutual funds.

If you enter your monthly investment amount, expected rate of return, and investment duration, the calculator will show you how your money could grow over time.

The calculator enables better financial planning in line with the investment goal.

Formula to calculate Invesco 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.
• Rupee cost averaging reduces the impact of market volatility.
• Compounding in SIPs yields long-term wealth accumulation.
• You can start SIP investing with as low as ₹100 per month.
• SIP enables diversification of funds, helping in limiting market risks.
• SIP investment offers the flexibility to increase or decrease the amount as per your financial goals.

How to use the Invesco SIP calculator?

To use the Invesco SIP Calculator, follow these steps:

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

When you enter these values, the Invesco SIP calculator will display the total amount of money you will invest, any gains you may make, and the total value of your investment at the end of the investment period.

How can Invesco SIP Calculator help You?

• The Invesco SIP Calculator accurately predicts future returns based on the investment amount and duration.
• It helps create a realistic financial plan with monthly budgets to reach your goals.
• Performs scenario analysis to compare different investment amounts and durations for optimal returns.
• The Invesco SIP Calculator projects investment growth over a specific period.

Examples of Invesco 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: 3 years
• Expected Annual Rate of Return: 10%
• Expected Gain: ₹30,650
• Total Investment: ₹5,000 × 12 months × 3 years = ₹1,80,000
• Future Value: Approximately ₹2,10,650