Systematic Investment Plan (SIP) is an investment option to invest a fixed amount every month in the mutual fund scheme of your choice. Once registered, the investment amount is automatically deducted from the bank account and invested in the mutual fund schemes irrespective of the market trend. As such, one continues to save consistently towards their financial goals, adding a sense of financial discipline into your lives.

However, calculating how much you need to save and how much your regular savings can accumulate into is an important step in your financial planning, as you may fall short of the desired financial corpus if you do not save enough. You can use our SIP calculator to calculate how much you can accumulate with your monthly SIP investment. You only need to input the monthly amount being invested through SIP, no. of SIP installments and the expected rate of return on the webpage, and you can know the amount of investment corpus that you will be able to accumulate through your monthly investments.

For example, you want to know the portfolio value if you are investing Rs. 10,000 per month for 10 years. Assuming the annual returns of 12% per annum, the calculator will calculate the portfolio value of Rs. 22.41 lakhs against your total investment of Rs. 12 lakhs*. With this easy-to-use SIP investment calculator, you can calculate the investment corpus depending on different variables and link your financial goals with specified SIP investments accordingly. As such, you can judge if your existing investment plan will help you achieve your financial goals or not. The SIP Calculator works based on simple mathematical calculations and determines the returns on the existing and fresh SIP investments on an ongoing basis and assumes compounding of the returns on a monthly basis.
*The figures used above is for illustration purpose only.

While the examples above illustrate the portfolio value after 5 years and with the assumed rate of return of 12% per annum, here is a small matrix showing the portfolio values for Rs. 10,000 monthly investment at different return assumptions across different tenors:

The table shown above is for illustration purpose only and does not assure or guarantee any returns. For SIP calculations above, the data assumes the investment of Rs. 10000/- on 1st day of every month or the subsequent working day. CAGR returns are computed after accounting for the cash flow by using XIRR method (investment internal rate of return). Past performance may or may not be sustained in future. In view of individual nature of tax consequences, each investor is advised to consult his/ her own professional tax advisor.

With the above calculations, planning for your financial goals may have now become an easier task for you. However, make sure that once you plan to invest towards your financial goals, you continue investing consistently. You should not let the market volatility deter your investing spirit. Stay committed to your financial goals and continue investing towards a healthy financial future.

Investment in Mutual Fund Schemes carry high risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Aditya Birla Sun Life Mutual Fund / Aditya Birla Sun Life AMC Limited will not accept any liability/ responsibility/loss incurred on any investment decision taken on the basis of this information.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.