As many as thirty-six lakh new accounts have been opened in the Indian Mutual Fund Industry within the last year. Furthermore, by August 2023, SIP inflows hit a record ₹15,800. Lately, the usage of a SIP calculator cannot be avoided by any investor who wishes to earn decent yields for their mutual funds. It is now common practice for every investor who wishes to achieve high returns on their mutual fund investments to leverage the power of SIP calculators.
How do SIP calculators help investors make better SIP investments?
1. SIP calculators help investors estimate their returns at the end of the SIP’s tenure:
One important benefit of a SIP calculator is that it apprises investors of their expected returns after the SIP’s tenure. Such foresight helps investors lay out a roadmap toward achieving set financial targets and choosing an appropriate investment strategy. Investors can know the possible gains depending on variables such as the SIP, duration, and expected return rates. They can therefore set their expectations based on their financial goals.
2. Investors can decide on a convenient tenure and investment amount after using an SIP calculator:
The success of an SIP investment depends upon the appropriate choice of tenure period together with the correct quantity of investment required. This is where the use of SIP calculators comes in handy as they help the investors try out various combinations of tenures and amounts. Investors can adjust these different variables to create a balance between achieving their financial goals and taking on risks by observing how their returns differ. Such flexibility proves to be an indispensable attribute for experienced investors refining their portfolios as well as beginners searching for mutually applicable knowledge concerning mutual funds.
3. SIP calculators are free for use and available online:
The most outstanding feature of the SIP calculators is their being readily available on the Internet, where users can access them at no cost. Several AMCs have free SIP online calculators on their web pages that are easy to operate and can be used for quick and precise calculation that also does not cost extra. This accessibility has piqued investors’ interest in making proper SIP investment plans, regardless of their investment experience.
4. SIP calculators show accurate results and account for inflation while estimating returns:
When it comes to financial planning, accuracy is critical, and SIP calculators provide it. These calculators consider inflation for future gains to represent the actual purchasing power of the estimated returns. Foresight ensures that the investors have enough information to consider inflation and how it will affect their real returns. This level of accuracy is vital to investors aiming at safeguarding their economic position and attaining long-term goals.
