Kotak SIP Calculator

Kotak SIP Calculator

SIPs, or Systematic Investment Plans, offer investors an easy way to invest in mutual funds. It involves regularly investing a fixed amount of money into mutual funds, with the option to contribute weekly, quarterly, or monthly.

Creating a successful SIP portfolio can be challenging and that’s where a SIP calculator comes into play.

Kotak SIP Calculator assists you in projecting the future value of your investments using just a few inputs.

How does the Kotak Mutual Fund Calculator work?

The Kotak SIP calculator is a digital tool that can help you estimate the returns from your SIP investments over time.

You just need to enter the tenure, estimated yearly return rate and the total amount of your investment into this online calculator. It will then calculate the potential returns and provide an approximate maturity value.

In the case of Kotak’s SIP return calculator, this estimation is made based on the specific scheme’s historical performance.

The online tool facilitates enhanced financial planning by giving you an estimate of the possible earnings.

What is the formula to calculate Kotak SIP returns?

The Kotak SIP calculator uses this formula to estimate potential returns:

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

Here:

• FV is the future value of your investment
• P stands for the Principal, or the SIP amount
• R is the expected rate of return
• i denotes the compounded rate of return
• n is the number of instalments

Benefits of investing through SIP

• SIPs promote regular investments, ensuring financial discipline and wealth-building over time.
• Investments can be started as low as ₹100 per month.
• Investing through an SIP allows you to earn passive returns.
• Due to the compounding effect, SIPs enhance wealth growth exponentially over time as the investment period increases.
• SIPs offer the flexibility to start and stop investment as and when required.

How to use the Kotak SIP Calculator?

• Launch the Kotak SIP Calculator
• Enter the amount you plan to invest every month.
• Choose the mutual fund you wish to invest in from the drop-down menu.
• Decide how long you want to keep investing.
• The calculator will then provide an estimate of your potential returns based on these inputs.

How can Kotak SIP Calculator help you?

• It removes the hassle of manually calculating maturity values, making the process quick and error-free.
• With just a few inputs, you can instantly estimate your SIP returns, saving you time and effort.
• The calculator is available for unlimited use at no cost, allowing you to experiment with different scenarios as many times as you like.

Examples of Kotak 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