An investor - new or existing, invests and remains invested with a basic objective - to attain or inch closer to their respective financial goals. Well, these goals can be of different kinds, based on the lifestyle, age, status, of the investor. Some might invest with a short-term goal of buying a luxury car and some with a long-term goal of child education or buying a home.

Whatever the goal might be, the solution is one - investments. It takes time, patience and the right financial advice, but in the end of what might seem like a long road, it can be worth it when you would be able to use the corpus for a long-awaited goal completion.

When we talk about investment of your hard-earned savings here, mutual funds can be a great option to explore in the market. It offers convenience, hassle free online investing, and a variety of fund options for investors. A simple but strategic way of making this investment is through SIP mutual fund. Through this method, one can make customised periodic investments in a chosen fund over a period of time that suits them. In case of short-term SIP investment, such as 6-12 months, choosing a debt fund is recommended. And, if one wants to opt for long-term investing such as a few years, it is best to choose equity mutual funds.

SIP mutual fund has various benefits that attracts investors, a few being-

It can be started with an amount as less as Rs.500 per month, which makes it a viable investment option even for students.

It can be completed online with a few clicks.

It is well regulated and monitored by SEBI.

The time frame, type of fund, amount, everything can be customised by the investor.

Power of compounding makes the money grow exponentially in SIP investment with time.

Along with the advantages of SIP investment stated above, another feather added to its cap is the ease of calculation with help of the SIP investment calculator. It is an online tool that lets the investor know in seconds, the expected corpus from their investment, after the selected period of time. This saves them from the hassle of manual calculation, while giving them the much-needed confidence to proceed with the SIP.

SIP Investment calculator can be of two types - One which tells you the expected corpus and one which tells you how much to invest in order to reach an expected corpus. Let us understand the same with an example-

Suppose, Mira invests Rs 12,000 monthly in a chosen SIP mutual fund over a period of 10 years, then her expected corpus would be close to Rs 28 lakhs (assumption of 12% returns), as opposed to the invested amount of Rs. 14,40,000. On the other hand, if you wish to have a corpus of Rs. 15 Lakhs in 10 years, you should ideally be investing Rs 6,500 in SIP mutual fund, on a monthly basis assuming 12% p.a. return and zero inflation. The SIP investment calculator helped us reach at these accurate numbers in seconds.

This article was all about SIP mutual fund – and its various branches, that need to be understood and analysed thoroughly by potential investors in order to make the right SIP investment decision.

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