Nippon India SIP Calculator

Nippon India SIP Calculator

Systematic investment plans (SIPs) offer an opportunity to grow your wealth over some time with regular investments of small amounts. You can use the Nippon India SIP Calculator to plan your investments.

The online tool enables you to determine your probable income from a SIP investment.

How does the Nippon India SIP Calculator work?

The Nippon India SIP, or Systematic Investment Plan, is a simple way to build wealth over time. As opposed to investing a huge lump sum amount, the Nippon India SIP allows you to invest a fixed amount at regular intervals. Since your investments are stretched out over time, this method ensures financial discipline by encouraging consistent saving habits and eliminating the stress of managing market fluctuations.

With the SIP, investments are automatically deducted and made at predetermined intervals, which streamlines the process and requires minimal effort on your part. The Nippon India SIP simplifies the investing process, helping you reach your financial goals.

Formula to calculate Nippon India 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 promote regular investing which facilitates the development of a savings culture among the masses.
• It targets wealth creation over time by compounding investments.
• SIP investment can be as low as ₹100 per month.
• Rupee cost averaging reduces the impact of market fluctuations.
• Offers flexibility to pause or change investment plan as needed.
• Provides diversification which spreads risk across multiple assets.

How to use Nippon India SIP Calculator?

• Open the Nippon India SIP Calculator.
• Enter the monthly investment amount, the investment period and the expected rate of return.
• The calculator will then provide you with information, including the total invested amount, wealth gained and the expected future value at the end of the investment period.
• You can modify the monthly investment amount to align with your desired maturity value, helping you determine the optimal investment strategy for your specific goals.

How can the Nippon India SIP Calculator help you?

• Financial planning: It enables you to create a well-informed financial plan by estimating the monthly SIP amount needed to achieve your desired payout at maturity.
• Accuracy: The calculator delivers accurate calculations regarding the total invested amount (principal), wealth gained (profits) and the expected future value (maturity amount) based on your specified parameters.
• Scenario Evaluation: It lets you compare different investment options.
• Track Progress: Monitors how close you are to your financial goals.

Examples of Nippon India SIP growth

Example 1:

• Monthly Investment: ₹3,000
• Duration: 10 years
• Expected Annual Rate of Return: 12%
• Total Investment: ₹3,000 × 12 months × 10 years = ₹3,60,000
• Future Value: Approximately ₹6,97,017

Example 2:

• Monthly Investment: ₹5,000
• Duration: 10 years
• Expected Annual Rate of Return: 12%
• Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
• Future Value: Approximately ₹11,61,695