How much do you need to save per month for a target corpus?
Use this calculator to find the monthly SIP required for a specified duration at the expected interest rate for building a target corpus.
What is SIP?
SIP is the latest trend in the mutual fund industry. As the name suggests, SIP is investing a fixed amount systematically at regular intervals in a fund. The amount is typically debited automatically from the bank account on the pre-determined date. Due to its systematic nature, the SIPs have much more to offer than only tax savings. Read on how!
How does SIP work?
A SIP is offered in an open-ended mutual fund which has the flexibility to be altered, continued or stopped anytime. You can choose to extend your period of investment also. All you need to do is determine your objective, understand your horizon, risk appetite, enter your monthly amount and select the fund. Then you need to select the date on which the amount can be debited.
Based on the inputs and prevailing NAV, the units are allocated. Next month onwards, your bank account is auto-debited on the date selected, and you get the additional units credited to your account depending on the NAV of that day.
Advantages of SIPs
- Inculcate discipline to invest regularly
- Rupee Cost Averaging due to investments at a different price point
- Planned savings towards your financial goal
- Low on the pocket, as minimum amount supported is Rs 500
How to Use SIP Calculator?
Step 1: Choose the target corpus you want to achieve.
Step 2: Choose the investment period.
Step 3: Choose the Annual Investment Return (%).
Step 4: Click on Calculate button.
How to plan and start?
At Orowealth, to make life simpler for our customers, and readers, we have designed and developed SIP calculator that enables to you how to plan for your financial goals.
Let us elucidate in detail the feature of SIP calculator and how it can benefit you.
All you need to do is enter the following –
- Your target amount that is your target to accumulate
- Investment tenure – how long you can invest in accumulating this amount
- Annual investment return – how much gain you expect on a yearly basis
So in the above calculation, assume you need to accumulate Rs 1 lakh in one year’s time, and you expect 10% returns annually. Thus, you need to invest Rs 7911.06 per month to achieve your goal.