An SIP Calculator is an easy-to-use online tool offered by UTI Mutual Fund. This SIP calculator allows investors to curate financial plans by estimating the corpus amount at the end of the investment period or calculating the monthly SIP amount required to reach a targeted corpus amount.

For calculating the investment corpus, the investor must provide the monthly SIP amount, expected rate of return, investment period and step-up percentage, if chosen. If the investor needs to calculate the monthly SIP, one needs to feed in the target corpus amount in place of the monthly SIP amount and the investment period. The calculator automatically arrives at the monthly SIP investments required.

Such a calculator helps investors prepare their financial plans objectively by quickly getting the results of such complex mathematical calculations. With the help of these calculations, one may suitably adjust the investment amounts depending on the financial goals, risk appetite, and budget.

If the financial goals are not achievable with a given investment amount, the investor may consider downsizing the financial goals accordingly. This helps investors chalk out a prudent financial plan to achieve their financial goals efficiently.

Our SIP calculator requires the following inputs from the investor to arrive at the target corpus amount: The first input is the monthly amount which the investor aims to invest through an SIP Secondly, the investor must enter the expected returns from the investments. Such expected returns may vary depending on the chosen mutual fund scheme Investment period (in years) has to be put in for which the investor will be investing regularly One can also mention the step-up percentage, which will increase the SIP amount by the specified percentage at fixed intervals

After entering the details, investors have to click on the 'Calculate' button to know the investment corpus at the end of the investment period to know if the stated investment plans will help achieve the financial goal.

Example of how a SIP Calculator works

SIP Calculator uses the inputs the investor provides to calculate the accumulated corpus at the end of the investment period. These input fields are the monthly SIP amount, expected rate of return, investment period and step-up percentage.

Once these inputs have been entered, the SIP calculator calculates the output with a button click. For example, if an investor is looking for a monthly SIP of ₹20,000 with an investment period of 20 years and expected returns of 10% per annum, the corpus calculates to ₹1.45 crores against the investment amount of ₹48 lakhs.

Further, if the investor opts for a step-up of 10% every year, the investment corpus increases to ₹3.09 crores against the investment of ₹1.37 crores. This is how a SIP calculator helps investors make informed decisions about the SIP investing strategy.

A SIP return calculator helps investors estimate the targeted corpus amount with the monthly SIP investments, investment period, and expected rate of return. Alternatively, one can also calculate the monthly SIP required to be invested to achieve the target corpus.

When the investor is aware of the end goal and has prepared the financial plans on a realistic basis with the SIP return calculator, the incentive to invest has already been created. Linking investments with specific financial goals is an intrinsic motivation to continue investing, even when the markets are trending downwards.

Further, they can also review and modify the investing strategy well in advance if the investment corpus falls short of the desired amount.

Regular SIP

This is a common investment option by investors since this is the investment facility offered by mutual funds to make regular investments. SIPs are registered with a fixed amount, periodicity, and end date.

Perpetual SIP

This SIP does not carry an end date. The SIP investments continue to be made until the investor cancels the SIP.

Step-up SIP

Step-up SIP aims to increase the SIP amount periodically, either by a fixed percentage or by a fixed amount. This enables the investor to automatically increase the SIP amount to match the corresponding increase in regular income and consequent investible surplus.

Trigger SIP

Such SIP can make rule-based investments in specified mutual fund schemes. SIP investments in such cases are triggered only when the specified rules are fulfilled.

Such rules include the mutual fund scheme going below a specified NAV, Nifty/Sensex falling by a certain percentage on a given day, etc. This helps the investors to benefit from specific market movements and eventually gain in the long term.

If the specified levels are not triggered, it may defer SIP investments and delay the specific financial plans.

Benefits of using an SIP calculator

Defining the financial roadmap

An SIP calculator helps investors objectively define the investment roadmap by calculating the investment corpus at the end of the period or the monthly investments required to reach the targeted corpus.

Ease in financial plan

With quantifiable results in hand, one can also periodically review the portfolio performance to ensure that the financial plans are on the right track and the investor can achieve the financial goals as planned earlier. If any corrective actions are required, such measures can be taken promptly.

Making informed decisions

A SIP calculator illustrates the target corpus amount for the investor with the expected rate of return. Therefore, if the corpus is achievable with lower returns, the investor may like to make investments in debt for relative stability with relatively lower returns. This helps the investor to adjust the overall investment risk of the portfolio.

A SIP can be registered by submitting an application form at any of the Official Points of Acceptance for the mutual fund house or by conveniently making online registration through the mutual fund website. When the application form has been submitted physically, the further process is taken care of by the mutual fund house.

In the case of digital registration, the investor must complete the entire process, which includes submitting the application form on the website, followed by the SIP registration on the Net Banking portal of the linked bank account.

Once the investor has submitted all the SIP details, including the start date, end date, mutual fund scheme, SIP date, periodicity, etc., a SIP Registration Number is displayed on the screen and mentioned in the SIP confirmation email received from the mutual fund house.

To complete the process, one needs to register such SIP with the Net Banking portal of the registered bank account. Then, the SIP instalments get debited automatically from the bank account.