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A setup SIP calculator is a tool that helps you calculate the amount of money you need to invest regularly to achieve your financial goals through SIPs (Systematic Investment Plans). It takes into account factors like your desired investment amount, the investment tenure, and the expected rate of return to provide you with an estimate of your future earnings. With a setup SIP calculator, you can plan your investments better and make informed decisions.
A setup SIP calculator works by taking inputs such as investment amount, tenure, and expected rate of return to calculate the future value of your SIP investments. It uses a pre-defined formula to compute the future value of your investment and displays the result on the screen. This helps you make informed decisions about your investment strategy and plan your finances better.
Enter the investment amount, duration, and estimated rate of return into the appropriate fields of the setup SIP calculator. The future worth of your investment will then be calculated by the calculator, and the results will be shown. You can change the inputs to see how they affect your investment results and then decide what to do after doing your research.
Depending on the mutual fund company and the scheme you select, a different minimum investment is needed to begin a setup SIP. Typically, it can cost anywhere between Rs. 100 and Rs. 500 per month. Some mutual funds, however, might have higher minimum investment requirements, like Rs. 1,000 per month.
The expected return on your setup SIP investment depends on several factors such as the investment amount, tenure, and the fund's past performance. However, most mutual fund companies aim to provide an annual return of 12-15% on SIP investments over the long term. It's critical to remember that past results do not guarantee future return.