Investing in mutual funds is a great way to grow your wealth over time. However, with so many mutual funds and investment plans available in the market, it can be challenging to choose the right investment plan that suits your needs. Systematic Investment Plans (SIPs) are one of the most popular investment plans offered by mutual fund companies. SIPs allow investors to invest small amounts of money in a mutual fund at regular intervals, typically monthly. This approach is beneficial for investors who want to invest in mutual funds but do not have a lump sum amount to invest.
State Bank of India (SBI) is one of the leading banks in India that provides various investment options to its customers. SBI Mitra SIP calculator is a handy tool that helps investors calculate the expected returns on their SIP investments. In this comprehensive guide, we will discuss everything you need to know about the SBI SIP calculator.
What is SBI SIP Calculator?
SIP Calculator SBI Mutual Fund is an online tool that helps investors calculate the expected returns on their SIP investments in SBI mutual funds. The calculator takes into account various factors such as investment amount, SIP frequency, investment tenure, expected rate of return, and inflation rate to calculate the expected returns on the investment.
How to Use SBI SIP Calculator?
Using the Star SIP calculator is a straightforward process. Here are the steps to use the SBI SIP calculator:
Step 1: Visit the SBI mutual fund website.
Step 2: Click on the ‘Calculators’ tab on the top menu bar.
Step 3: Under the ‘Calculators’ section, click on the ‘SIP Calculator.’
Step 4: Enter the investment amount, SIP frequency, investment tenure, expected rate of return, and inflation rate.
Step 5: Click on the ‘Calculate’ button.
The calculator will display the expected returns on the investment based on the inputs provided.
Benefits of Using SBI SIP Calculator
Using SBI SIP calculator has several benefits. Some of the benefits are:
- Helps in Financial Planning: SBI SIP calculator helps in financial planning by providing an estimate of the expected returns on the investment. This information is useful for investors to plan their finances accordingly.
- Helps in Choosing the Right Investment Plan: SBI SIP calculator helps investors compare different investment plans and choose the one that suits their needs.
- Saves Time: SBI SIP calculator saves time by providing quick and accurate results. Investors do not have to spend time manually calculating the returns on their investments.
- User-Friendly: SBI SIP calculator is user-friendly and easy to use. Investors can use the calculator without any technical knowledge.
How SBI SIP Calculator Works?
You can understand the workings of a SIP calculator with this formula.
FV = P [ (1+i)^n-1 ] * (1+i)/iFV = Future value or the amount you get at maturity.
P = Amount you invest through SIP
i = Compounded rate of return
n = Investment duration in months
r = Expected rate of return
Take an example where you invest Rs 2,000 per month for a tenure of 24 months.
You expect a 12% annual rate of return (r).
You have i = r/100/12 or 0.01.
FV = 2000 * [(1+0.01) ^24 – 1] * (1+0.01)/0.01
You get Rs 54,486 at maturity.