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# What do you Understand by SIP Calculator?

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With the increase in awareness in the market, there are many people interested in the different options of investment. One of the safest options to invest in is always mutual funds, for this, the person needs to think about SIP i.e. Systematic Investment Plan that will help in investing a fixed sum of money in the mutual funds after every regular interval. Most people pay the SIP weekly, quarterly or monthly. Nowadays in the market to get the proper estimate about the investment and the returns on it, there is the use of the SIP calculator.

It is a simple tool that will allow the individual to get all the ideas regarding the investment and the returns on it. Nowadays SIP has gained a lot of popularity among people regarding the different benefits provided by it. The actual returns on the SIP might vary with the investment plan and it provides clarification for the exit load and the expense ratio. With the help of the calculator, the person can easily calculate the wealth gain and all the expected returns from it.

Mostly SIPs are the lucrative mode of investing funds in comparison to the lump sum amount investment. The main advantage of using this SIP calculator is that it will provide the most reliable expected returns after a tenure of investment. There is a list of benefits of the SIP calculator:

• Helps in assisting the amount the person needs to invest in.
• Tells about how much money the person needs to invest weekly, quarterly, or month that he can easily afford.
• Provides the estimated money that he will get from the returns.

The SIP calculator works on the following formula:

M = P × ({[1 + I]n – 1} / i) ×(1 + i)

Here, M stands for the amount the person will receive at the maturity date. P stands for the amount he needs to regularly invest in the mutual fund plan. n is the number of payments the person has made. i is the periodic rate of interest.

So it all depends upon the person how much he wants to invest and how much he wants to earn at the maturity date. In the market, there are different types of SIPs available list of them.

• Set-up SIP: This SIP is also known as top-up SIP that enables the person to increase the investment automatically that too after an interval of time.
• Perpetual SIP: It is a SIP that will enable the person to keep on investing the money for as long as they want.
• Trigger SIP: In this SIP, the person can easily start investing during a specific event, date, NAV, or index level.
• Flexible SIP: It is a type of SIP in which the person can easily change the amount of SIP according to preference.

So, it is clear that SIP is a great option for investment. For more details, the interested person can get on the website. There the experts will guide their clients in the best possible way.

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Shabbir Ahmad is a highly accomplished and renowned professional blogger, writer, and SEO expert who has made a name for himself in the digital marketing industry. He has been offering clients from all over the world exceptional services as the founder of Dive in SEO for more than five years.