How to Use an SIP Calculator to Achieve Your Financial Goals

Online SIP Calculator

Plan Your Investments with Ease: 

A fantastic strategy to amass wealth over time is by making regular investments in mutual funds through a SIP. Calculating how much you must invest to achieve your financial objectives, though, can be difficult. SIP calculators online are useful in situations like these. Making informed judgments can be made by using a SIP calculator online to obtain a general estimation of your prospective returns on investment.

How to Use an Online SIP Calculator to Achieve Your Financial Goals: 

Using a SIP calculator online is a straightforward process that entails entering your investment information, choosing your investment type, figuring out your returns, and, if necessary, modifying your investment. To give you an idea of your possible returns, the SIP calculator online, factors in the investment amount, time frame, and estimated rate of return. Using a SIP calculator online helps you develop a strategy that supports your financial objectives and is in line with your investing objectives.

A SIP calculator online enables people to estimate the returns on their SIP-based mutual fund investments. These SIP calculators online help you  to provide prospective investors with an estimate of their mutual fund investments. The actual returns provided by a mutual fund plan, however, vary based on a number of variables. The exit load and expense ratio are not explained by the SIP calculator online. The wealth increase and anticipated returns for your SIP investment are calculated using the SIP calculator online. In fact, based on a predicted yearly return rate, you receive a preliminary estimate of the maturity amount for each of your monthly SIPs.

How a SIP calculator online Help You: 

The SIP calculator online essentially divides the future value of the SIP investment into two halves by providing investors with two numbers: the expected return on the investment and the principal. You can use the SIP calculator online to gain a general idea of how your investment would develop over a specific holding period, given a particular rate of return and SIP contribution.

By using the SIP calculator online, 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 so. 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 SIP calculator online. 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 idea to understand how these figures are calculated so you can feel more secure about your investing strategy.

The SIP formula:

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


FV= Future value of investment

P= Principal Contributions each month

r= expected rate of return (per month)

n= Number of contributions towards the principal

ICICI Prudential Asset Allocator Fund: 

The open-ended dynamic asset ICICI Prudential Asset Allocator Fund is part of the ICICI Prudential Mutual Fund House. The fund’s investment goal is to achieve capital appreciation “mainly from a portfolio of equities, debt, and gold schemes accessed through the various investment styles of underlying schemes,” according to the investment objective statement. From its inception, the ICICI Prudential Asset Allocator Fund (FOF), has produced average annual returns of 11.66%.

With ICICI Prudential Asset Allocator Fund (FOF) Growth and all other mutual funds, the phrase “Expense Ratio” refers to the annual fees required to be paid to the mutual fund company for managing your investments in that fund. ICICI Prudential Asset Allocator Fund (FOF) Growth’s expense ratio was 1.37% as of March 2, 2023.

A hybrid mutual fund product from ICICI Prudential Mutual Fund is the ICICI Prudential Asset Allocator Fund (FOF) Direct – Growth. Manish Banthia, Sankaran Naren, and Dharmesh Kakkad are the fund managers for this scheme. Its AUM is 18,321.84 Crores, and as of March 2, 2023, its most recent NAV declared was 90.977.

Investors can use a SIP calculator online to estimate potential long-term returns on their investment. It’s crucial to comprehend the inputs, pick the appropriate calculator, take prior performance into account, be realistic, and use the SIP calculator online as a guide in order to use a SIP calculator properly. But, it is always advised to speak with a financial adviser. A financial advisor is one of the most important parts of the investment process. So always contact your financial advisor before investing your capital.

Read also: How Share Market Hours Influence Stocks?

Nancy Ahuja

Hi, I am Nancy Ahuja. I am a professional Financial Analyst in Pune. I have done a post-graduate in finance and working with a reputed financing company. I love to write about business and finance

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