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A Systematic Investment Plan, or SIP is a smart and easy way to start your journey toward the share market. SIP provides investors with a systematic and active way to invest and build long-term wealth.
Through the usage of the SIP calculator, online investors calculate their returns by considering factors such as the investment amount, duration, and expected rate of return. BlinkX SIP return calculator offers simplicity and a transparent overview of your investment, making it a valuable tool for both new and experienced investors.
You can use Blinkx's SIP amount calculator with a few clicks. Simply input the monthly invested amount (the amount for which you initiated the SIP), the number of years you intend to keep invested, and the estimated rate of return. As soon as you enter the figure, the calculator will provide the approximate amount you may withdraw after your investment period is completed.
According to various mutual fund experts, SIPs offer a more profitable approach to investing funds compared to a lump sum amount. It simply helps in financial discipline and cultivating a savings habit for future benefits. An online SIP calculator proves to be a valuable tool, offering an approximation of the returns you can expect at the end of your investment tenure.
Some benefits of SIP calculators Include:
Here are the types of Systematic Investment Plan
| SIP Type | Main Feature | Suitability | Risk and Benefit |
| Equity SIP | Invests primarily in stocks with the potential for higher returns but subject to market volatility. | Investors with higher risk appetite, long-term investment horizon, and goal for wealth creation. | Potential for the long-term increase in the value of capital and the possibility of achieving higher returns. Exposed to market risks and short-term fluctuations. |
| Debt SIP | Invests in fixed-income instruments for stable income and lower volatility. | Conservative investors seek regular income, capital preservation, lower risk, and a shorter investment horizon. | Stable returns, and acts as a hedge against market volatility. May offer relatively lower returns compared to equity SIPs. |
| Hybrid SIP | Invests funds into a combination of both stocks and bonds. | Investors seeking moderate risk exposure, regular income, and medium to long-term investment horizon. | Offers diversification benefits, potential for capital appreciation and income generation, but also risks associated with market fluctuations. |
| ELSS | Tax-saving SIP investing mostly in equities. | Investors looking to save taxes while aiming for long-term wealth creation with a medium to long-term investment horizon. | Provides tax benefits, the potential for higher returns and compounding, subject to market risks and short-term fluctuations. |
| Sectoral SIP | Focuses on specific sectors for potential growth. | Investors with high-risk appetite, specific sectoral insights, and long-term investment horizon. | Offers the opportunity to capitalize on the growth of specific sectors but is exposed to concentrated risks associated with the chosen sector. |
| Index SIP | Replicates specific market index for market returns and broad exposure. | Investors seeking market returns, lower costs, and no active fund management requirements. | Provides diversification, lower expense ratios, and benchmark-like returns, but is subject to market risks and cannot outperform a tracked index. |
| Gold SIP | Invests in gold ETFs or mutual funds for portfolio diversification and hedging against inflation. | Investors looking to diversify portfolios, hedge against inflation, and invest in gold as an asset class. | A convenient and cost-effective way to invest in gold provides liquidity but is impacted by volatile gold prices in the short term. |
| International SIP | Invests in foreign securities for exposure to global markets and growth opportunities. | Investors seeking international diversification, exposure to global trends, and long-term growth. | Provides access to international markets, sectors, and currencies, the potential for higher returns but is exposed to currency risk and global market volatility. |
The functionality of a SIP calculator is based on mathematical equations designed to incorporate the compound interest accumulated during SIP investments. The formula it uses is:
FV = P [ (1+i)^n-1 ] * (1+i)/i
This formula represents the following variables:
| FV | Future Value |
| P | Represents the regular investment amount |
| i | Denotes the rate of return |
| N | Stands for the number of instalments |
Consider a scenario where you intend to allocate Rs. 10,000 every month for 7 years with an anticipated annual rate of return of 12%.
In this case, the monthly rate of return can be calculated as 12% divided by 12%/ 12 = 0.1
Hence, FV = 10,000 ({[1 + 0.01] 84 - 1 } / 0.01) x (1 + 0.01)
Under these conditions, your accumulated fund would amount to Rs. 13.19 lakhs.
Here are the common mistakes to avoid while making a SIP: