SIP calculator

SIP Calculator: The Ultimate Tool for Making Smart Investment Decisions

3 minutes, 50 seconds Read

The practice of routine investing is among the best ones to grow and prosper. A Systematic Financial Plan, or SIP, is the appropriate financial tool to assist you in maintaining your investment in this. You may determine the total return on your monthly investment using our SIP calculator.

What is SIP Calculator?

SIP calculator is an instrument that shows the projected return on your SIP investment based on an estimated return and the future value of the investment after a specific number of years. Given that SIPs normally require a monthly payment, the manual computation can be a little labor-intensive. The returns for each of these payments will vary since the holding period for each monthly investment would vary at any given time.

SIP Calculator: The Ultimate Tool for Making Smart Investment Decisions: 

The sip calculator effectively divides the expected return on investment and principal, which investors can expect to receive, into two amounts to represent the future worth of their SIP investment. Consequently, you can use the sip calculator to gain a general idea of how your investment would increase over a specific holding time, given a specific rate of return and SIP contribution.

When using the sip calculator, you can implicitly account for the impact of inflation. By manually calculating the nominal rate of return you would anticipate from your investment based on your intended real rate of return and the current rate of inflation, you may do this. To begin investing in mutual funds, you only need to utilize the manually calculated rate as your rate of return and enter it into the calculator.

Computation process of sip calculator Work: 

Even though you can always locate a SIP calculator online, you don’t need to perform the calculations by hand, but it’s still a good notion to recognize how these statistics are calculated so you can feel more protected about your investing strategy.

SIP calculators use the following SIP formula:

FV = P x {[(1 + r) n – 1] ÷ r} x (1 + r)


  • FV= Future value of an investment
  • P= monthly Principal Contributions
  • r=  monthly expected rate of return
  • n= Number of contributions to the principal

Advantages of SIP Calculator: 

Mutual Funds and other market-linked investments do not guarantee returns on your money. Therefore, it may be challenging for investors to calculate how much their money will increase in the future or how much they need to invest in order to achieve their financial objectives. The SIP Calculator aids in resolving these issues and offers investors the following significant benefits:

  1. Instantaneous Results: It has never been simpler to determine the future worth of your investments. There is no need for time-consuming figure crunching. The SIP Calculator consistently outputs accurate answers based on your inputs.
  2. Simple to Understand and Use: The SIP Calculator is incredibly simple to use, so estimating your investment needs doesn’t require you to be a maths prodigy. Additionally, it is cost-free and may be used indefinitely.
  3. Helps You Make Knowledgeable Investment Decisions: If you are setting aside money for a certain objective, careful planning of your investments is essential. The SIP Calculator can assist you in estimating how much savings you’ll need to make in order to accomplish your investing goal efficiently.
  4. Find the Best contribution Options: Unlike other calculators, SIP Calculator can give you the kind of funds that could be able to assist you in achieving your financial objectives.

KOTAK FLOATING rate fund: 

KOTAK FLOATING rate fund is a Floater mutual fund product offered by KOTAK MAHINDRA Mutual Fund. The growth returns over the past year for the KOTAK FLOATING rate fund are 5.38%. KOTAK FLOATING rate fund has produced returns of 6.70 percent annually on average since its debut.

The ability of the KOTAK FLOATING rate fund plan to deliver returns consistently is less than that of the majority of products in its category. In a market that is collapsing, it has little power to limit losses.

The statistics: The KOTAK FLOATING rate fund has a very robust credit history. Since its start in May 2019, the KOTAK FLOATING rate fund has produced returns that are on average 5.38% per year. As of April 20, 2023, the KOTAK FLOATING rate fund’s expense ratio is 0.23%, and AUM, or assets under management, was 4,257.31Cr. As of 19 April 2023, KOTAK FLOATING rate fund’s NAV is 1,290.88.

The KOTAK FLOATING rate fund invests 100.52% of its assets in debt, including 17.67% in government securities and 82.85% in low-risk securities, making it an appropriate choice for investors who wish to invest money for a longer period of time yet prefer less hazardous assets than equity funds.

Read also: What is the Maximum Credit Limit on a Credit Card in India

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