Use the SIP calculator and plan your investments
Why are you required to make investments? It is very simple, investments are the sole way to grow your wealth, and otherwise, inflation will decrease the value of your wealth with time. Your investments can be on a short-term as well as a long-term basis. Later, you can use your investments in the need of an hour, such as to meet your child’s education expenses, make property out of it, etc. While planning to invest, a lot of questions will come to mind such as where to invest, the amount of investment, and the duration of investment? Answers to all these will depend on your return expectation. Based on your return expectation, by using the sip calculator you can find answers for how much to invest and the duration of the investment. Your investment can be based on monthly as well as annual installments.
- SIP, a systematic investment plan, brings you the best option to make your investments in a systematic manner. SIP investment plans are offered by mutual fund companies. You can start your investments with an amount as small as 500 rupees. You can choose the duration criteria as per your preference, it can be monthly, yearly, quarterly as well as weekly. Based on all these, you can calculate the expected return by using a SIP calculator. However, you need to know that you will get an estimation of the expected returns. You won’t get the absolute calculation because these investments are subject to market risk.
- With the help of SIP, you will develop the quality of discipline and you will also be able to learn the habit of investing. It will help you in creating the assets that you can liquidate and use whenever you will need them. Let us also tell you that there is nothing extra that you will be required to do to invest in mutual funds. You will have to approve your bank mandate only one time and after that amount will automatically be deducted from your bank and will be deposited in the funds. You can approve the bank mandate for a period as long as 3 years.
- However, before you start to invest, you need to have an investment plan. Making an investment plan requires a lot of calculations which can make it tough for you to make the right calculations. But still, there is no need to worry because you can easily avail the online facility of a SIP calculator. In manual calculations, there can be the possibility of errors but in the case of calculations done by a calculator, there will be no error, unless, you have made a mistake while putting the figures. It would hardly take a few seconds to provide you with the exact calculation. But you also need to take into account the market risk because, already stated above, mutual funds are subject to market risk.
By having a proper plan and calculations, you can efficiently utilize your money to grow your wealth. You need to beat the inflation before the inflation beats your wealth.