This website including the ‘[EduFund]’ platform is owned, operated and maintained by Helena Edtech Private Limited, a company incorporated under the laws of India. The platform and the services thereunder are provided on an "as is" basis. Use of the service and the platform is at your own risk. Company makes no warranty that the use of the service and the platform will be continuous, uninterrupted, bug-free, error-free, virus-free, free of defects, free of technical problems, nor that it will meet all of your needs. To the extent permitted by applicable law, Company expressly disclaims all other warranties, conditions, results, guarantees, or representations with respect to the service and the platform, whether express or implied, including, but not limited to, the implied warranties of merchantability, merchantable or satisfactory quality, fitness for a particular purpose, non-infringement of third party rights, or arising from the course of performance, course of dealing, or usage of trade.
Investment in securities market are subject to market risks, read all the related documents carefully before investing. The valuation of securities may increase or decrease depending on the factors affecting the securities market.
EduFund and the EduFund App are the brand and product of Helena Edtech Private Limited
“An affiliate of the Company, i.e. Samyama Advisors Private Limited, is registered with the Securities and Exchange Board of India (SEBI) as an investment adviser under the SEBI (Investment Advisers) Regulations, 2013 bearing the registration number [INA000015321]. Samyama Advisors Private Limited may provide investment advice to the clients through the Company's platform.”
Registered Address: 30, Omkar House, Near Swastik Char Rasta, Navrangpura, Ahmedabad Gujarat, India – 380009
Transaction Platform Partner : BSE Star MF (with Member code-51573). CIN No: U67100GJ2020PTC112589. RIA Number: INA000015321 GST No: 24AAFCH2122L1ZU
Please scan QR code to download the EduFund app
How does the SIP calculator work? All you need to know
In the earlier article, we discussed the Step-up SIP calculator. In this article, we will talk about the SIP calculator.
SIP stands for Systematic Investment Plan. It is a method of investing that requires consistency in investments, even if the amount is small. It focuses on time and needs the compounding cycle not to break.
The amount invested in a SIP format allows the investor can take advantage of rupee cost averaging over the long term and thus, get better returns on average.
Periodic investment also reduces volatility, and you can accumulate a sizeable corpus. SIPs usually allow you to invest weekly, quarterly or monthly.
What is a SIP calculator?
A SIP calculator is a tool that will help you to get a basic idea about the returns that you can generate through your investments.
It provides you with a rough estimate and a road ahead to achieve your financial goals based on a projected annual rate of return.
With the help of a few numerical inputs, a SIP calculator makes your work easier by solving complex financial problems in no time. The calculator will calculate the increase in wealth and the expected return for your SIP investment.
How does a SIP calculator work?
SIP calculator calculates the potential return with the help of the compound interest formula.
The working formula is as follows: M = P x ({[1 + i] n – 1} / i) x (1 + i)
To calculate your SIP returns, you need to input the following values:
The formula mentioned above has the following components
M = Total Amount you will receive on maturity.
P = Amount of money that you will invest periodically (at consistent time intervals)
n = Number of payments you make as an investment
i = Periodic expected rate of interest on your investment
Let us see the working of the above formula through an example
For example, you want to invest Rs 10,000 monthly for seven years with an expected rate of return equaling 12% per annum (so, the monthly return will be 12%/12 = 0.01).
Plugging these values in the formula, we get M =10,000({[1+0.01]
{84}-1}/0.01) x (1+0.01) = Rs. 13.19 lakhs.
The best thing about this calculator is changing the variables’ values according to your investment goals and requirements.
How will a SIP calculator help you?
Trying to estimate what you wish to receive at the end of your investment tenure is an essential task. It depends upon how much return you expect on your investment and how much are you willing to invest.
The SIP calculator helps you to
You can use a SIP calculator in multiple ways. It can be used backwards to obtain the periodic investment amount, given your final wealth requirement, investment period, and the expected return rate.
Thus, a SIP calculator is a helpful tool for taking your investment journey a step ahead.
Consult an expert advisor to get the right plan for you