Sip Calculator – Systematic Investment Plan For Bright Future in 2023

Looking to invest in mutual funds using SIP ((Systematic Investment Plan)? Use our SIP Calculator in 2023 to accurately calculate your potential returns and plan your investments accordingly.

Our easy-to-use tool takes into account various factors such as investment amount, tenure, and expected rate of return to provide you with a customized investment plan. Use our easy-to-use calculator tool to protect your investment growth and explore the benefits of SIP investing. Start planning your investments today with our SIP Calculator 2023.

A potential investor might think that SIPs and mutual funds are the same things when it comes to investing. Investment in mutual funds can also be done in lump sums, but SIPs are merely one method of investing. 

By using a SIP calculator, you can determine the returns you can expect from such investment tools. SIPs are a method of investing a fixed sum of money in mutual funds on a regular basis. Usually, you can invest in SIPs on a weekly, quarterly, or monthly basis. 

About Investment

As the name implies, an investment is an asset or item purchased to generate income or appreciation. When an asset appreciates, its value increases over time. 

When one invests in a good, one intends to use it to create wealth in the future rather than consume it in the present. It is essential to understand that an investment can refer to any mechanism used to generate future income. 

In addition to bonds, stocks, and real estate property, this includes purchasing other financial instruments. It is also possible to consider investing in a property that can produce goods.

As a general rule, any action taken in hopes of raising future revenue can also be considered an investment. For example, many students pursue additional education to enhance their knowledge and skills. As the student’s career progresses, the time he or she invests in attending class and the money he or she pays for tuition will hopefully result in increased earnings.

What Are Mutual Funds?

Mutual funds invest in securities like stocks, bonds, money market instruments, and other assets by pooling shareholders’ assets. Investing in mutual funds involves professional money managers who allocate the fund’s assets and try to make capital gains or income for investors.

In their prospectus, mutual funds state their investment objectives and how their portfolio will be structured and maintained to meet them. Professionals can manage portfolios of equities, bonds, and other securities for small or individual investors.

Therefore, the fund’s gains and losses are shared proportionally among its shareholders. The performance of mutual funds is typically reflected by changes in the total market capitalization of the fund derived from aggregating the performance of the underlying investments.

Fidelity Investments, Vanguard, T. Rowe Price, and Oppenheimer are examples of large investment companies offering mutual funds. Managers of mutual funds, sometimes called investment advisers, must serve the best interests of their shareholders.

Best Mutual Funds In 2023

You should invest in the best mutual funds that have been scientifically and algorithmically selected to suit your needs. Let’s look at the best mutual funds to invest in this year. No matter whether you are saving for the long term, the short term, taxes, or your emergency needs. We’ve got you covered-

1. Canara Robeco Bluechip Equity Fund (Growth)

Value Fund: 96.05% of the fund’s investments are in domestic equities, of which 73.88% are in large-cap stocks, and 6.78% are in mid-cap stocks.

Objective: Investing for at least 3-4 years and seeking high returns is the objective of this fund. In addition, these investors need to prepare for moderate losses in their investments.

2. Canara Robeco Emerging Equities fund (Growth)

Value Fund: Over different time periods, its trailing returns have been -6.35% (1yr), 21.23% (3yr), 12.1% (5yr) and 17.05% (since launch).

Objective: As a small and large-cap investor, you are interested in generating capital appreciation by investing in a diversified portfolio of stocks. No guarantee can be made as to whether the investment objective of the scheme can be achieved.

3. Nippon India Value Fund (Growth)

Value Fund: 98.31% of the fund’s investments are in domestic equities, with 60.46% invested in large-cap stocks, 14.88% in mid-cap stocks, and 6.94% in small-cap stocks.

Objective: To provide higher returns to investors with advanced knowledge of macro trends and prefer to take selective bets. Although the overall market performs better, these investors should also be prepared for moderate to high investment losses.

4. Parag Parikh Flexi Cap Fund (Growth)

Value Fund: 68.15% of the fund’s assets are in domestic equities, of which 55.65% are in large caps, 3.56% in mid-caps, and 7.62% in small caps. There is a 0.56% investment in Debt, of which 0.56% is in Low-Risk securities.

Objective: Sophisticated investors seeking high returns over a period of time of three to four years. It is also essential for these investors to be aware that their investments may suffer moderate losses.

Mutual Funds For A Long Time 

“Long-duration mutual funds” refers to funds with excellent potential and the ability to provide high returns. However, there is a risk associated with these funds due to their volatility in nature and the high costs involved. 

When you take one of these funds, you will have to actively and thoroughly review the performance of such Long Duration mutual funds from time to time. In this way, you will be able to keep track of the market performance of your fund.

An investor can typically expect great dividends from these Long Duration mutual funds. Such a fund is great for those who are prepared to take a high level of risk to receive good returns in the Future.

Below given is the curated list of some best long duration Mutual Funds-

1. Quant Small Cap Fund

Fund Performance: In the past three years, the Quant Small Cap Fund has delivered an annualized return of 48.78%, and in the last five years, it has produced an annualized return of 23.72%. Funds in the Equity category of Quant Mutual Funds include Quant Small Cap Fund.

Minimum Investment Amount: You need to invest a minimum of 5,000 USD via lump sum or 1,000 USD via SIP to invest in Quant Small Cap Fund.

2. Quant Infrastructure Fund

Fund Performance: Over the last three years, the Quant Infrastructure Fund has returned 36.96% annualized returns, and during the previous five years, it has delivered 19.68% annualized returns. Quant Infrastructure Funds fall under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: You must invest at least $5,000 in Quant Infrastructure Fund via lump sum or $1,000 via SIP.

3. Quant Tax Plan Fund

Fund Performance: Over the past three years, the Quant Tax Plan Fund has returned 35.47%, and over the past five years, it has returned 21.22%. Quant Tax Plan Fund resides in the Equity category of Quant Mutual Funds.

Minimum Investment Amount: To invest in Quant Tax Plan Fund via lump sum or SIP, you must invest at least ₹500.

4. Quant Mid Cap Fund

Fund Performance: Over the past three years, Quant Mid Cap Fund has given a return of 32.75%, while over the last five years, it has given a return of 19.76%. An equity mutual fund, Quant Mid Cap Fund, is part of the Quant Mutual Funds category.

Minimum Investment Amount: Investors must invest at least $5,000 via lump sum and $1,000 via SIP in Quant Mid Cap Fund.

Benefits Of Mutual Funds

Mutual funds are a good alternative for investors with limited market monitoring time. Listed below are a few reasons why you may want to switch to mutual funds instead of picking your stocks-

1. Diversification-

Investment in mutual funds can be a smart way for investors to reduce their risk of loss because of the benefits of diversification or combining investments and assets.

Diversified portfolios contain securities with different capitalizations, industries and bonds of varying maturities and issuers. Diversification can be achieved more cheaply and faster when you buy a mutual fund rather than individual securities.

2. Easy Access-

Since mutual funds trade on major stock exchanges, they can also be purchased and sold relatively quickly, making them a highly liquid investment that attracts a great deal of attention.

Furthermore, mutual funds often offer investors the most convenient way to participate in certain asset classes, such as foreign equities or exotic commodities.

3. Economies Of Scale-

Mutual funds have also provided economies of scale by avoiding numerous commission charges needed for a diversified portfolio. Transaction fees increase when only one security is purchased at a time. Investing in mutual funds with smaller denominations allows investors to take advantage of dollar-cost averaging.

Generally, mutual funds pay lower transaction costs than individuals because they simultaneously buy and sell large quantities of securities. Unlike smaller investors, mutual funds can invest in various assets or take a more significant position than a single investor.

4. Professional Management-

Research and skillful trading are the hallmarks of a professional investment manager. Through mutual funds, small investors can get a full-time manager to make and monitor their investments for a relatively low cost.

In contrast with mutual funds, which require much lower investment minimums, these funds offer individual investors a low-cost way to gain access to professional money management.

5. Transparency-

The industry regulates mutual funds to ensure that investors are provided with accountability and fairness.

How To Start Investment In Mutual Funds  

When it comes down to investing in mutual funds and building a wealth portfolio, many investors do not have any idea where to start.

The process of investing in mutual funds is also unfamiliar to beginners. They don’t know what documents they need or must provide. When investing in mutual funds, you need to follow these steps:

1. To invest, you must open an account first.
2. For selecting the category and subcategory of mutual funds, you must evaluate your investment goals, time horizon, and risk tolerance.
3. To decide which scheme to choose, you can research different methods from Asset Management Companies (AMCs).
4. Besides deciding what category and type of fund to invest in, you must also determine which funds to invest in.

Investments in fund schemes can be made in multiple ways, as explained below-

1. How To Invest Through AMC/Fundhouse?

Almost all fund houses and AMCs have an online site/app that allows investors to create accounts with an email address, phone number, or PAN number. Once verified, you can invest in plenty of their schemes after a KYC process.

The offline process may involve visiting the AMC branch and submitting the mutual fund application form, self-attested identification, and address proofs. Ensure KYC verification is completed by attaching passport-size photographs and PAN card information.

       2. How To Invest Through A Broker?

On your behalf, a broker will invest in mutual funds through AMC online or offline. Additionally, you may be required to open a Demat account with them as well, for which you will be charged. 

Brokers not only assist with account opening and KYC but also advise about schemes and investments as they keep track of them. However, fees are associated with them, such as Management and operational costs.

What Is SIP In 2023?

Investments in mutual funds are made through Systematic Investment Plans, which invest a fixed amount of money on a monthly or quarterly basis. It is up to the fund house to set the minimum amount for SIPs.

To get started, all you have to do is choose the SIP amount that will be right for you, link your bank account, and you can get started investing right away. In addition to providing financial discipline to an investor, SIPs are considered an appropriate investment mode for beginners.

To ensure that you select the best SIP plans for your investment, it is crucial to consider certain factors before investing.

How To Start Mutual Funds

Investors are attracted to mutual funds because of their numerous advantages, but an essential factor that drives them to invest in them is the ability to.

1. Make a small investment (as little as 500).
2. You can diversify your portfolio across multiple stocks and other instruments, such as Debt and gold.
3. Automate your monthly investments (SIP).
4. You do not need to open a DEMAT account to invest.

Benefits Of SIP In 2023

Getting started with SIP is a straightforward process. Upon applying for a SIP, a pre-determined amount is automatically deducted from the investor’s bank account and invested in the mutual fund scheme of his choice. Compared to lump-sum investments, SIP has many advantages, which makes it the preferred option for investors. 

It is possible with a Systematic Investment Plan to gain several benefits, some of which are as follows-

1. Rupee Cost Averaging

As mentioned earlier, rupee cost averaging is one of the primary advantages of SIPs. Rather than investing in a lump sum, you regularly invest to average the value of your investment.

The market is known for its ups and downs. An investor cannot predict market movements with any degree of accuracy. A SIP investment can be an excellent tool to average your investment costs.

If the markets are down, you can buy more units of a mutual fund; if they are high, you end up with fewer units. Comparing this to investing lump sums, you’ll pay fewer costs in the long run. 

2. Helps You Become A Disciplined Investor

Investing through a SIP saves time and effort since money is regularly deducted from your bank account. Getting an understanding of how the stock market works do not require expertise. Regarding investing, you can sit back and relax since everything is taken care of for you.

3. Power Of Compounding  

Instead of investing in a lump sum, you can automate your investments through SIPs, so you never miss a chance to invest. As small amounts are invested over time, they build into a substantial corpus, and the returns are compounded as time passes.

4. Convenience 

As soon as you set up a mandate for SIP each month, the amount will automatically be deducted from your account without any intervention.

5. Helps You Plan Your Finances Better

Knowing how much will be deducted from your account each month will make it easier for you to manage your other expenses.

Top Best SIP Calculator Online In 2023

1. SBI SIP Calculator

With the SBI SIP calculator, you can estimate the maturity value of your investments in various SBI mutual fund schemes. This tool lets you understand how any SBI mutual fund performs based on its past performance.  Since mutual funds are market-linked, their end value can differ from their actual performance.

2. AXIS SIP Calculator

An online tool that estimates the returns from a SIP investment is available from Axis Bank SIP Calculator. An investor provides simple inputs such as an investment amount or target amount, an expected rate of return, an investment tenure, and a step-up rate.  On the other hand, the target amount approach estimates the current monthly investment based on the target and other inputs the investor provides.

3. Canara SIP Calculator

You can estimate the return on your SIP investments using the Canara Bank SIP Calculator. The calculator can calculate investment returns by providing inputs such as investment amount, tenure, expected return, and step-up SIP amount. 

Investors can use the investment amount approach when they know how much they can invest monthly. As an alternative, the target amount approach is used by investors who know how much they want to earn but don’t know how much to invest regularly.

4. ICICI SIP Calculator

SIP returns for mutual funds can be estimated using the ICICI SIP calculator. Data inputs such as investment amount, investment duration, mutual fund name, etc., can be used to determine potential SIP returns.

The calculator calculates potential returns based on the inputs. It determines how much wealth a mutual fund investor has gained by investing in SIPs.

Despite this, SIP calculators do not guarantee returns and are merely estimates of potential returns. A mutual fund’s actual return can also depend on the performance of the fund. 

Since actual returns are market-dependent, they may be higher or lower than estimated. Using the calculator, one can determine how much the ICICI SIP returns will be.

FAQs:- Systematic Investment Planning 

Q1: How does the SIP calculator work?

A1: SIP plan calculators work based on the values entered by the user. The amount, frequency, duration, and expected return of the investment must be entered. Using the compound interest formula, the SIP return calculator calculates SIP returns. Furthermore, it compares the returns offered by mutual funds with those offered by fixed deposits.

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

Q2: Which SIP is most profitable?

A2: Disciplined investors have enjoyed very high returns from SIP investments provided by fund management institutions, even in volatile market conditions. Today, there are many systematic investment plan options available in ULIPs. The following are the best SIPs in India for the year 2023-

1. Quant Active fund: 25.7% p.a. 5-year returns.
2. Quant Large & Mid Cap Fund: 20.24% p.a. 5-year returns.
3. Parag Parikh Flexi Fund: 19.43% p.a. 5-year returns.
4. PGIM India Flexi Cap Fund: 19.12 % p.a. 5-year returns.
5. Kotak Equity Opportunities Fund: 17.59% p.a. 5-year returns.

Q3: Can I invest 100 Rs daily in SIP?

A3: The best thing about SIP plans is that you can start with as little as Rs.100/- per month. That’s right; it’s that easy and affordable.

Q4:Can I withdraw SIP anytime?

A4: Yes, You can withdraw your SIP anytime. Furthermore, you can withdraw a SIP when not earning profits or when you have chosen to invest in a more rewarding plan.

Q5: Is SIP tax-free?

A5: After one year, all gains made by investing in equity funds or balanced mutual funds will be considered tax-free long-term capital gains.

Q6: Is SIP better than FD?

A6:  Systematic Investment Plans (SIPs) are simple ways to invest in mutual funds. In contrast to FDs, which are smart investment choices for conservative investors with a low-risk appetite because they guarantee the safety of the invested capital.

Q7: Can I withdraw from SIP anytime?

A7: Yes, an investor can partially or fully withdraw his/her investment. An investor, however, must consider the following points before withdrawing: Stop your Systematic Investment Plans (SIPs) – Before you withdraw, ensure that all your SIPs are closed.

Conclusion

When you invest, you put your money into something that can grow over time and add value to your life. The purpose of saving funds is to put money aside for current and short-term financial needs. Consequently, long-term investments require a commitment to generate a profitable outcome.