A Systematic Investment Plan (SIP) is a disciplined way to invest regularly in mutual funds. Instead of making a lump sum investment, you contribute a fixed amount periodically—monthly, quarterly, or even weekly. SIPs allow you to invest small amounts, making it an accessible and effective way to build wealth over time.

Key Features of SIP:
 

• Automated Investing: Your chosen amount is auto-debited from your account, ensuring consistent investment.
• Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility.
• Power of Compounding: Returns generated are reinvested, helping your investments grow exponentially over time.

The SIP calculator is a smart financial tool that helps you figure out how small amounts invested regularly can compound to a considerable amount over a period of time. It's super handy to plan your savings and see your money grow over time 🚀. By inputting the monthly investment amount, expected returns, and your investment tenure, you can get a clear picture of potential returns.
 

Why use an SIP calculator?
 

• Easy Planning: Determine how much to invest monthly to achieve a specific goal.
• Clarity on Returns: Get a realistic estimate of how your investments will grow.
• Compare Scenarios: Evaluate returns across different funds or investment tenures.

To use the SIP calculator, you need to give some basic inputs like your monthly SIP investment amount, investment period (in years), and expected annual growth rate. The SIP calculator will show the total invested amount, total returns generated, and the final investment value. It assumes investments are made on the first day of each month.
The calculator uses a simple formula, given below, to calculate your estimated returns:

FV = P × [(1 + r/n) ^ nt - 1] × (1 + r/n)

Where:
 

• FV is the future value
• P is the investment amount
• r is the annual interest rate
• n is the number of compounding periods per year
• t is the investment tenure
   

By factoring in these variables, the calculator offers precise projections for your SIP growth.

Let’s understand this with a simple example. Suppose you want to calculate the returns on a monthly SIP of ₹5,000 for 10 years, with an annual growth rate of 12%. Just enter these values into the SIP calculator, and you'll get the estimated future value (FV).

For this example, the FV comes out to be ₹11,20,179.

Here's the formula: ₹11,20,179 = ₹5000 x {[(1 + 0.01)^120 - 1] / 0.01} x (1 + 0.01)

The total value is split into two parts:

1. Invested Amount: This is the total SIP instalments over time, which is ₹6,00,000 (10 years x 12 months x ₹5000/month).

2. Total Returns: This is the growth of the investment, which is ₹5,20,179, representing an 86.7% return on the invested amount.

   
   It's that simple! Use the SIP calculator to see how much you need to invest each month to achieve your financial goals.

• Estimate Returns: It helps you predict how your consistent monthly investments turn into significant wealth over time.
• Goal-Oriented Planning: Plan for specific goals like education, a home, or retirement with precision. Achieve clarity on how much to invest and for how long.
• Time-Saving: Save hours of manual calculations with our efficient tool.
• Risk Mitigation: Plan investments with a realistic understanding of your risk tolerance and returns by changing the expected returns field in the calculator. 
• Customised Insights: Tailor inputs like tenure and rate to find the best investment strategy.
• Track Progress: Monitor your investment journey and make adjustments if needed.

It's like having a financial advisor at your fingertips! 💼📈

1. Choose a Mutual Fund Scheme: Select a mutual fund scheme that matches your risk appetite and financial goals.
2. Decide on an Amount: Use our sip return calculator to determine how much to invest monthly.
3. Start Investing: Open an account with Arihant Plus, choose the SIP amount and tenure, and start investing.

Anyone can start an SIP—whether you're a salaried professional, entrepreneur, student, or retiree. SIPs are a flexible investment option for individuals across all financial backgrounds. Anyone with a regular income or savings can start an SIP. It’s perfect for:

• Young professionals building a financial foundation.
• Entrepreneurs: Diversifying their income stream and looking to build meaningful wealth.
• Families saving for future expenses like education or a home.
• Retirees looking for consistent returns with moderate risk.

• Expert Guidance: Our experienced advisors help you select the right funds.
• Customised Solutions: We guide you in with your investments to suit your unique goals.
• Get started in minutes: Set up your mutual fund account in a few minutes and make your first SIP right away with UPI or net banking. No paperwork needed, completely digital. 
• Easy investing and tracking in one place: Investing with ArihantPlus is really simple and you can see all your investments in one place and track your portfolio through our simple yet comprehensive reports and dashboards.

• Regular SIP: Invest a fixed amount at regular intervals.
• Flexible SIP: Adjust your investment amount based on your financial situation.
• Top-Up SIP: Increase your investment amount periodically to match income growth. Its also known as step-up SIP.
• Perpetual SIP: Continue investments without an end date, ensuring sustained wealth creation.
• Trigger-Based SIP: Invest automatically when certain market conditions are met.