Trust SIP Calculator

Trust SIP Calculator

Systematic investment plans (SIPs) allow you to build wealth with small but regular investments over a specified time.

You can use the Trust SIP calculator to manage your investments and estimate how your money will grow over time. The calculator helps select the best-suited mutual fund scheme to achieve your financial goals.

How does the Trust SIP Calculator work?

The Trust SIP Calculator is designed as an online tool that helps investors estimate potential returns from a Systematic Investment Plan (SIP) in mutual funds. The online tool uses details like the monthly investment amount, expected return rate, and investment duration.

The Trust SIP Calculator facilitates enhanced financial planning by giving you an idea about the possible earnings on your investment.

Formula to Calculate Trust SIP Returns

The online SIP calculator deploys 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

• SIP encourages frequent investing for savings.
• Rupee cost averaging minimises the impact of market volatility on your investments.
• Compounding leads to long-term wealth growth.
• Start SIP investments with little ₹100 per month.
• Ability to suspend and swap investments as needed.
• Diversification helps spread risk across many investments.

How to use the Trust SIP calculator?

Follow these steps to use the Trust SIP Calculator:

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

The SIP calculator will show you how much profit you may earn at the end of the investment duration.

How can Trust 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 organize funds and set attainable goals.
• Scenario Evaluation: Analyse different investment scenarios.
• Track Progress: Monitor your progress toward financial goals.

Examples of Trust 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