Motilal Oswal SIP Calculator

Motilal Oswal SIP Calculator

Systematic Investment Plan (SIP) facilitates wealth creation for a longer duration of time by investing at regular intervals.

A key aspect of any investment is understanding the possible returns that you may earn over time. This is where the Motilal Oswal SIP Calculator comes into play.

The online tool enables you to figure out the possible earnings from your investment by giving details like investment amount, rate of return, and tenure.

How does the Motilal Oswal SIP Calculator work?

The Motilal Oswal SIP Calculator helps you estimate the potential returns on your Systematic Investment Plan by analyzing the details of your investment. To use the calculator, you need to provide certain basic information such as the monthly investment amount, the duration of your investment, and the expected rate of return. Based on these numbers, the Motilal Oswal SIP Calculator will provide an estimate of your potential returns, helping you gauge how your investment may perform over time. While the calculator offers a projection of earnings, actual returns may vary due to market fluctuations.

Formula to calculate Motilal Oswal SIP returns

The online SIP calculator generates a forecast value for your assets over the given term using the following simple formula:

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

• SIPs encourage regular investments, ensuring financial discipline and helping in the steady accumulation of wealth over time.
• Investing through a SIP eliminates the need to time the market by using rupee cost averaging, buying more units when prices are low and fewer when prices are high.
• SIPs enhance wealth growth exponentially over time as the investment period increases, due to the compounding effect.

How to use Motilal Oswal SIP Calculator?

Using the Motilal Oswal SIP Calculator is easy. Here’s how you can use it:

• Open the Motilal Oswal SIP Calculator.
• First, enter the amount you plan to invest each month. You can either type it in directly or adjust it using the slider.
• Choose the expected rate of return.
• Then indicate the total duration, or tenure, of your SIP by selecting the number of years.
• If you plan to increase your SIP amount annually, set the percentage increase.
• Once you have done all these, the calculator will display your returns and also show the wealth created or profit earned.

How can the Motilal Oswal SIP Calculator help you?

If you are an investor attempting to schedule your mutual fund investments, the Motilal Oswal SIP Calculator can be incredibly useful.

• It provides a relatively accurate estimate of potential returns and growth for various SIP plans and schemes.
• It allows you to compare returns across different tenures, interest rates, and SIP amounts, helping you find the best investment fit.
• The tool simplifies the investment planning process by aiding in the selection of the most suitable mutual fund scheme based on your financial goals.
• The calculator makes complex calculations straightforward, saving time and effort compared to manual computations.

Examples of Motilal Oswal SIP growth

Example 1:

• Monthly Investment: ₹5,000
• Duration: 15 years
• Expected Annual Rate of Return: 12%
• Total Investment: ₹5,000 × 12 months × 15 years = ₹9,00,000
• Future Value: Approximately ₹25,22,880

Example 2:

• Monthly Investment: ₹5,000
• Duration: 10 years
• Expected Annual Rate of Return: 10%
• Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
• Future Value: Approximately ₹10,32,761