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SBI SIP Calculator - Planning SBI MF Investments

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Manish Kothari
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Manish Kothari
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An increasing number of investors in India are taking the SIP route to create wealth in the long term. SIP or systematic investment plan entails regular investments in mutual fund schemes, rather than one-time lumpsum investments. This allows investors to avoid buying mutual fund units at market extremes and invest near the average price. It is also beneficial for those, who wish to develop the good habit of investing a portion of their monthly income.  

Before investing in any mutual fund scheme, it can be advantageous to have a rough idea about the returns one can expect at a future date. This is where SIP calculators come into the picture. These help you estimate the future returns from your SIP investments, when you invest a particular amount, at a particular CAGR (compounded annual growth rate), after a certain number of years. If you are investing in an SBI mutual fund scheme, then this page is for you. This SBI SIP calculator will help you gauge the returns you can expect and make informed investment decisions.

Benefits of an SBI Mutual Fund SIP Calculator

An SBI Daily SIP calculator can play an instrumental role in mutual fund investment planning, allowing investors to make informed decisions about whether the mutual fund scheme with expected returns fulfills their financial goals, and how much to invest in the scheme, in case they opt to invest in it. The many benefits of the State Bank of India SIP calculator are explained in detail below.  

Accuracy of Results: SBI SIP calculator is a tried-and-tested method of determing estimated returns from SIP investments. The calculator uses a clear-cut formula that considers the monthly investment amount, tenure of investment, and expected rate of return to ascertain the return that the investment will likely yield. While the rate of returns can vary from the estimated number, the calculator still provides a pretty clear picture of the types of returns one can expect.  

Easy to Use: With just three simple inputs, the State Bank of India SIP calculator can provide estimated returns from mutual fund SIP investments after several years. These inputs include monthly investment, estimated annual return, and the number of years of investment. Thus, you do not need any kind of technical or mathematical expertise to use an SBI SIP calculator.  

Supports Informed Decision-Making: Before choosing to invest in any instrument, be it mutual fund SIP, lump sum, or any other, every investor seeks to get an idea about the return he or she can expect. This allows an investor to formulate an investment strategy and evaluate the different investment options available. By providing expected returns from mutual fund investments, an SBI SIP calculator facilitates decision-making.  

Time Saver: While calculating returns from one or two-year investments can be straightforward, you cannot say the same about investments that last 10, 20, or 25 years. However, an SBI SIP calculator can complete these complicated calculations in a second and share results.  

For all these benefits and many more, it is wise to check out estimated returns from SIP investments before making any investment-related decisions.  

How does an SBI SIP Calculator Work?

SBI SIP calculators use a formula to derive returns from investments. This formula requires three inputs, namely annual returns, period of investment, and investment amount. Putting these three variables in the formula, the SBI SIP calculator provides an idea about returns. Let us now see the formula that helps ascertain the yield from SBI SIP:  

TR = P x {[(1 + r)n – 1] ÷ r} x (1 + r)

TR is the total returns one can expect at the time of redemption or maturity of mutual fund units.

P is the principal or monthly investments you make through your systematic investment plan.

n is the number of payments you make or installments you pay throughout the SIP investment journey.

r is the expected per month return on investment (ROI) from your investments.

Now let us understand how your wealth compounds with mutual fund SIP investments. Suppose you invest INR 10,000 per month, earning a CAGR of 15 percent. The below table illustrates your returns over the years.

Investment Period in YearsTotal Returns in INR
58,97,000
1027,90,000
1567,70,000
201,52,00,000
253,28,00,000

As evident from the above table, investments of INR 10,000 per month, earning you 15 percent every year can create a wealth of more than INR 3 crores over a period of 25 years. 

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Frequently Asked Questions about SBI SIP Calculator

Q. Can the SBI SIP calculator provide accurate returns from SIP investments ?

SBI SIP calculator uses a formula to ascertain Daily Systematic Investment Plan returns. This formula utilizes monthly investment, expected returns, and the duration of investment (in months or years) to calculate returns. While the rate of return can vary, the SBI SIP calculator is efficient in providing an idea regarding returns. 

Q. How do I choose the best SBI mutual fund scheme for myself ? 

There are numerous factors to consider while picking the right SBI mutual fund scheme for investment. These include risk tolerance, investment horizon, and the financial goals driving the investment decisions. Other factors, such as short-term and long-term financial needs must be taken into account before choosing a mutual fund scheme. For instance, you can opt for a tax-saving scheme to enjoy tax exemption. However, since the scheme has a lock-in period, it might not be suitable for people who need funds in near future. 

Q. Are SIP investments in SBI mutual funds safe ? 

Mutual fund schemes do not provide guaranteed returns. However, long-term investments allow investors to enjoy the benefit of compounding. Moreover, through SIP investments, they can average out their buying price and avoid investing at unreasonably high prices. Furthermore, SBI Mutual Fund is amongst the largest and most sought-after mutual fund companies in India. 

Q. How long should I invest in mutual funds via SIP for great returns ? 

Mutual fund investments can create fortunes over a long period of time. Thus, it is often recommended that one should invest in mutual funds, via SIP or lumpsum, with at least a five-year viewpoint. 

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