UTI SIP Calculator

UTI SIP Calculator

A Systematic Investment Plan, or SIP, is a disciplined strategy for making investments consistently in mutual funds to build wealth over the long term. Regardless of market volatility, through a SIP you can invest fixed sums at regular intervals, which encourages consistent saving behavior. However, it can be difficult to calculate estimated returns from a SIP investment manually. So, this procedure is made simple by the UTI SIP calculator, which offers accurate estimations of the returns on your investments.

How does the UTI SIP Calculator work?

The UTI SIP calculator is a digital tool that simplifies financial planning by helping investors estimate the returns from their SIP investments. Users need to feed in details such as the monthly SIP amount, expected rate of return, and tenure of the investment. The calculator then provides an estimate of potential returns, allowing investors to evaluate if their investment strategy meets their financial objectives.

Formula to Calculate UTI SIP returns

The online SIP calculator uses a simple formula to give a projected value of your investments over the chosen period of time:

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

• Investing through SIP allows building a corpus fund with small investments over a period of time.
• SIP investments promote financial discipline providing an opportunity to build a habit of saving regularly.
• SIP investments are comparatively less risky due to Rupee cost averaging.
• Compounding returns help to build a large corpus with even small amounts.
• You can start investments with a small amount of ₹100 - ₹500 per month.

How to use the UTI SIP return calculator?

• First, you need to enter the amount you wish to invest monthly in the SIP.
• The second step is to specify the period for investment.
• Enter the expected return rate you anticipate from your investment.
• After entering all these details, the UTI SIP calculator will estimate the potential return you would accumulate at the end of the investment period.

Examples of UTI SIP Growth

Let’s understand how the UTI SIP calculator works with an example. Suppose you plan to invest ₹5,000 each month in a SIP for 3 years, at an expected annual return of 11%. Using the SIP calculator, you would get an idea about how your investments will grow:

Total invested amount: ₹1,80,000

Estimated amount expected on maturity: ₹2,14,060

Wealth gained: ₹34,060