SIP Calculator
Systematic Investment Plan - SIP Calculator
What is a Systematic Investment Plan - SIP ?
A systematic investment plan or SIP is a smart way to invest in mutual funds at regular intervals. SIP allows an individual to regularly invest a fixed sum of money in any mutual fund scheme. Through SIP, an individual can accomplish his financial goals and cultivate the habit of saving money systematically . Under SIP, money can be invested in any mutual fund scheme on a quarterly, monthly or a weekly basis. As per the payment mode, a fixed sum of money is deducted from the investors’ bank savings account and invested.
How does SIP works ?
A systematic investment plan is one of the most disciplined ways of investing in mutual funds to build a strong financial corpus for the future. Based on the ongoing market price, an investor is allocated a pre -defined number of units which increases or decreases his fund value. Every time an investor pays the pre-determined SIP amount, additional units are purchased at ongoing market price and are added to the investor’s fund. Investors benefit through the system of rupee-cost averaging and the power of compounding.
Benefits of SIP
Discipline of investing
You can invest in a disciplined manner in your desired mutual fund scheme. Over the time your investment will grow and give a profitable return.
Rupee cost averaging
No need to time the market. Buy more units automatically when market are low. This reduces your over all cost of investment.
Power of compounding
Compounding return on your investment ensures better long term benefits over the one-time lump sum investment.
Small is big
A Small as Rs.500/- per month is enough to start a SIP in Mutual Funds. These small amounts accumulate as big over the period of time.
Systematic Investment Plan
A investor can invest a fixed amount systematically Daily, Weekly, Monthly or Quarterly desired amount in his desired Mutual Fund Plan for a limited or unlimited period. His investment value will appreciate depending on market performance. A investor can put his money work for him (even little Rs.500/- per month) in the long run his investment will give the fruits of power of compounding.
”செப்பம் உடையவன் ஆக்கஞ் சிதைவின்றி; எச்சத்திற் கேமாப்பு உடைத்து.”
– (திருக்குறள் ; குறள்: 112) நடுவுநிலைமை தவறாமல் ஒருவன் ஈட்டிய செல்வம், அவனை மட்டும் இல்லாது அவனது சந்ததியரையும் காக்க வல்லது.