Tata SIP Calculator

Tata SIP Calculator

Systematic investment plans, or SIPs, offer investors a simple way to start investing in mutual funds. They allow investments of small amounts systematically into mutual funds over a long period of time. However, figuring out such SIP investments’ maturity value can be a tedious task. That’s where the Tata SIP calculator comes in.

It’s an online tool for calculating SIP investment returns. The calculator yields an estimated maturity value based on the monthly investment amount, tenure and expected annual return rate entered by an investor.

What is the Tata SIP Calculator?

The Tata SIP Calculator is an online tool that provides investors with an estimate of the returns and growth from their monthly SIP investments. By inputting details such as the monthly investment amount and expected annual return rate, the calculator provides an approximate estimate of the maturity amount. While it provides an estimate based on annual returns, the calculator should be seen as a guideline rather than a definitive prediction of future performance.

How to use the Tata SIP Calculator?

To use the Tata SIP Calculator, you need to follow these steps:

• Enter the amount you plan to invest each month.
• Next choose the mutual fund scheme where you intend to invest.
• Indicate the number of years you want to keep your money.
• Finally, set an expected rate of return, which is the annual return rate you anticipate.

Once you’ve entered these details, the calculator will provide an estimated value of your investment at the end of the tenure.

What is the formula used by the Tata SIP calculator?

To provide an estimate of the amount you’d receive on maturity, the Tata SIP calculator uses the formula – P × ({[1 + i]^n – 1} / i) × (1 + i).

Here:

• P is the amount you invest at regular intervals
• n is the number of payments made
• i is the periodic rate of interest

Let’s understand this with the help of an example. If you want to invest Rs 10,000 per month for 1 year at a periodic rate of interest of 12%, the SIP calculator will provide you with these details:

• Invested amount: ₹1,20,000
• Wealth gained: ₹8,093
• Expected amount: ₹1,28,093

What are the benefits of using a SIP return calculator?

A SIP calculator is a valuable tool for estimating the returns on your investments over time. Here’s how it can benefit you:

• The calculator helps you figure out how much to invest regularly.
• It shows you the total amount you have invested.
• It computes the projected total value of your investments at the end of your SIP tenure.
• It simplifies the calculation process, saving you from tedious manual calculations.