Shriram SIP Calculator

Shriram SIP Calculator

The Shriram SIP, or systematic investment plan, is an easy and disciplined approach to wealth creation. Unlike a lumpsum investment, Shriram SIP lets you invest small amounts regularly, making investment more affordable. By spreading your investments over time, the SIP encourages consistent saving habits.

How does the Shriram SIP Calculator work?

The Shriram SIP Calculator is an online tool that determines the possible future value of your investment based on inputs like monthly investment, tenure, and expected annual rate of return. By determining how your money might grow over time, the online calculator facilitates better financial planning in line with your investment objectives.

In the case of the Shriram SIP Return Calculator, this estimation is made based on the specific scheme’s historical performance.

Formula to calculate Shriram SIP returns

The Shriram SIP online calculator uses a simple formula to estimate the potential maturity value of your investment:

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

In this formula:

• FV is the future value or the amount you would get upon maturity.
• P denotes the initial investment amount or the principal.
• i is the monthly interest rate, which can be derived by dividing the yearly rate by 12.
• n stands for the total number of months you plan to invest.

Benefits of investing through Shriram SIP

• Regular investment habit: Shriram SIPs encourage a disciplined approach to investing by promoting regular contributions.
• Long-term wealth growth: With an emphasis on long-term compounding, Shriram SIPs gradually increase your wealth.
• Low minimum investment: You can start investing with amounts as low as ₹500 per month.
• Rupee cost averaging: The practice of rupee cost averaging helps mitigate the effects of market volatility.
• Flexibility in investments: Shriram SIPs also offer flexibility, allowing you to modify or pause your investments as necessary.

How to use the Shriram SIP Calculator?

Follow these steps to use the Shriram SIP Calculator:

• Open the Shriram SIP Calculator.
• Enter your monthly investment amount, investment duration, and expected rate of return.
• The calculator will display the total amount invested, the wealth accumulated, and the estimated value of your SIP.
• Modify the investment amount to see how different scenarios impact your potential returns.

How can the Shriram SIP Calculator help you?

• It determines the monthly investment needed to reach your target maturity amount.
• The online tool provides accurate calculations of the expected maturity value of your investment for clear financial planning.
• It allows you to explore various investment scenarios and find the best approach.
• It helps track your progress towards meeting your financial goals efficiently.

Examples of Shriram SIP growth

Example 1:

• Monthly Investment: ₹5,600
• Duration: 10 years
• Expected Annual Rate of Return: 13%
• Total Investment: ₹5,600 × 12 months × 10 years = ₹6,72,000
• Future Value: Approximately ₹13,81,412

Example 2:

• Monthly Investment: ₹2,500
• Duration: 5 years
• Expected Annual Rate of Return: 12%
• Total Investment: ₹2,500 × 12 months × 5 years = ₹1,50,000
• Future Value: Approximately ₹2,06,216