Quant SIP Calculator

Quant SIP Calculator

Systematic investment plans (SIPs) aim to create wealth with small but regular investments over the long term. If you also invest in mutual fund SIPs, the Quant SIP Calculator can help you plan investments aligning with your financial objectives.

The calculator allows you to compare different scenarios and find the option that best suits your needs.

How does a Quant SIP Calculator work?

A Quant SIP Calculator is an online tool that allows users to estimate the profits from an SIP in mutual funds based on investment amount, tenure, and probable return rate.

The Quant SIP calculator performs quick calculations to show how your wealth may increase over time.

The online tool aids financial planning and management of the available resources.

Formula to calculate Quant 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

• Encourages regular investing which helps in disciplined savings.
• Rupee cost averaging minimises the impact of market volatility on your investment.
• Compounding leads to long-term wealth growth.
• SIPs are designed to serve investors across income levels. Anyone can start SIP with as low as ₹100.
• It offers the flexibility to pause or switch investments as needed.
• Diversification helps spread risk across many investments.

How to use the Quant SIP calculator?

To use the Quant SIP Calculator, follow these steps:

• Open the online calculator.
• Choose your monthly investment amount.
• Choose the investment period.
• Enter the expected rate of return.

When you enter these figures, the Quant SIP calculator will show you how much profit you may earn.

How can Quant SIP Return Calculator help you?

• Estimate Growth: Shows how regular payments can boost your investments.
• Future Returns: Estimates future returns depending on investment amount and duration.
• Budget Planning: Helps organise funds and set attainable goals.
• Scenario Evaluation: Analyse different investment scenarios.
• Track Progress: Monitor your progress toward financial goals.

Examples of Quant 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: 10 years
• Expected Annual Rate of Return: 10%
• Expected Gain: ₹4,32,760
• Total Investment: ₹5,000 × 12 months × 10 years = ₹6,00,000
• Future Value: Approximately ₹10,32,760