Sundaram SIP Calculator

Sundaram SIP Calculator

A Sundaram systematic investment plan (SIP) is an effective way to build wealth gradually, without the need for a large initial investment. Sundaram SIP enables you to contribute a fixed amount at regular intervals, instilling a sense of financial discipline while reducing the impact of market volatility.

With investments automatically deducted at specified times, Sundaram SIP streamlines the whole process.

Sundaram SIP Calculator enables you to estimate the future value of the investments to align with your financial objectives.

How does the Sundaram SIP Calculator work?

The Sundaram SIP Calculator is an online tool that uses a specific formula to determine the possible future value of your investments. The computation is done using inputs like your monthly investment amount, investment duration, and expected rate of return. The online tool factors in the effects of compound interest on your regular contributions.

It facilitates enhanced financial planning by showing how your money would grow over a specific period of time.

Formula to calculate Sundaram SIP returns

To estimate the maturity value of your Sundaram SIP, the online calculator uses a simple formula:

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

Where:

• FV is the future value or the amount you will receive when the SIP matures.
• P is the principal amount you invest.
• i is the monthly interest rate.
• n is the total number of months you plan to invest.

Benefits of investing through Sundaram SIP

• Consistent savings habit: Sundaram SIPs encourage regular, small investments, ensuring a disciplined approach to saving.
• Long-term wealth growth: By using the power of compounding, Sundaram SIPs facilitate steady wealth accumulation over time.
• Low starting amount: You can begin investing with as little as ₹100 per month, making it accessible for many.
• Rupee cost averaging: This helps even out market fluctuations and reduce the impact of volatility.
• Flexible investment options: Sundaram SIPs allow you to adjust or pause your contributions as needed, providing flexibility to meet your financial needs.
• Diversification: Investments are spread across various assets, helping to distribute risk and enhance overall financial stability.

How to use the Sundaram SIP Calculator?

• Open the Sundaram SIP Calculator.
• Enter your monthly investment amount.
• Specify the investment duration in months.
• Then enter the expected rate of return.
• The calculator will display the total investment amount, accumulated wealth, and estimated maturity value.

Examples of Sundaram SIP growth

Example 1:

• Monthly Investment: ₹3,200
• Duration: 6 years
• Expected Annual Rate of Return: 14%
• Total Investment: ₹3,200 × 12 months × 6 years = ₹2,30,400
• Future Value: Approximately ₹3,62,156

Example 2:

• Monthly Investment: ₹5,800
• Duration: 6 years
• Expected Annual Rate of Return: 14%
• Total Investment: ₹5,800 × 12 months × 6 years = ₹4,17,600
• Future Value: Approximately ₹6,56,407