SIP Calculator

SIP

One time

Monthly Investment

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Expected return rate (p.a)

Time period (Y)

All about the SIP Calculator

Mutual funds have become an extremely popular choice of investment amongst Indians. There are a variety of reasons behind it such as consistent growth of the stock market (BSE Sensex and NSE Nifty 50), increased level of financial literacy, and the roll-out of India's first zero commission mutual fund investment platform - Kuvera which does not charge any brokerage fees or commission for investment, helping you create more wealth for your investment.

Most beginner investors start with investment instruments like fixed deposits, government securities, gold etc. Although mutual funds need a deeper understanding in comparison to fixed deposits, gold, and recurring deposits, they have become hugely popular with the masses because of the completely digital/paperless investment process associated with investment in mutual funds.

There are two ways of investing in mutual funds: One method is investing in a lump sum, and another involves a systematic investment plan. Lump-sum investment is self-explanatory. It is making a substantially large investment in a mutual fund at one go. This article will walk you through all you need to know about SIP and how using Kuvera's SIP calculator can help you make investment decisions.

WHAT IS A SYSTEMATIC INVESTMENT PLAN?

A systematic investment plan or SIP is a tool or facility provided by various mutual funds to its investors. An investor must deposit or invest a certain amount periodically. It can be weekly, monthly, quarterly, or as per the investor's convenience. Mutual funds issue units to the investors as and when investors transfer funds to the mutual fund, basis his/her SIP frequency.

SIP inculcates the habit of investment in a person. People often take time to analyse the funds they want to invest in. Investors consider specific parameters, such as investment purpose, expected returns, expected fluctuations in the market, and financial goals. For analysis like these, several tools are used. Some require proper training to use, while some are freely available and can be used by anyone such as Kuvera's SIP calculator. That's the main topic for our discussion here

WHAT IS KUVERA'S SIP CALCULATOR?

Kuvera's SIP calculator is a free online tool that can assist investors in calculating the returns on their mutual fund SIP investments. The SIP return calculator can also guide investors on how much they should invest systematically every month / or at any other frequency, to achieve their financial target for the future. The calculator operates on the user's inputs. Simple inputs such as investment amount or target amount, the estimated rate of return, investment tenure, and step-up rate are required.

To put it simply, the SIP calculator can be quite useful in automating complex financial planning. All investors need to do is to enter a few parameters, and the mutual fund SIP calculator provides the results instantaneously. It helps an individual envision what their financial status would look like at regular intervals. Once an investor figures out the expected rate of annual return after consulting his financial advisor, or by looking at the historic performance of mutual funds the SIP calculator will give you the maturity value of your SIP investment based on the expected return percentage

Kuvera's SIP calculator is a tool that allows the investor to (a) calculate absolute returns on their investment in mutual funds through SIPs and (b) if one wants to know the amount one should SIP to reach. The best part is that it is free and convenient to use.

Please note that we focus on the word "approximate." This is because no one can predict market sentiments with 100% accuracy. Therefore, actual returns can vary from the projected returns calculated by the SIP calculator online. However, you get a good idea of your returns which could be used to make informed decisions. Also, the SIP calculator will not provide information related to expense ratio or exit load. Instead, this investment calculator will only paint a broad picture.

HOW DOES THE KUVERA'S SIP CALCULATOR WORK

Kuvera's Mutual fund SIP calculators provide an incredible interface for insight, but at the same time, there is a solid calculation that goes behind the projected returns. These calculations are based on compounding concepts associated with the growth plan of mutual funds i.e., reinvestment of gains made by the mutual fund into the same scheme periodically. So sometimes, people refer to it as a SIP compound interest calculator.

For instance, the calculator will ask for specific values like the monthly investment amount, the expected rate of return, and duration. Then it finds out expected returns on SIP based on these values. The MF calculator also considers the monthly or weekly investment, that is, the frequency of deposits. The SIP calculator will compute the maturity amount as well as the wealth gained through mutual fund investments. One can also set a target amount that corresponds to their financial goal and then reverse compute the monthly amount to be invested for the specified duration and rate of development.

It facilitates comparing or matching the expected rate of return on SIP with predetermined financial goals. This way, given the interest rate, you can determine how much you need to invest in getting the desired SIP returns at the end of the duration.

Let's dig deeper into the math and understand the SIP return formula.

HOW TO USE KUVERA's SYSTEMATIC INVESTMENT PLAN CALCULATOR?

Kuvera's SIP calculator usually consists of three input boxes.

1. Monthly investment amount

2. Investment period

3. Expected annual returns

You get the drill! Just fill the boxes with correct values and get the expected answer. You can do it as often as you want and compare the maturity amount at different durations and rates of interest.

Let me illustrate this using an example:

Monthly investment amount - Enter the amount of your monthly SIP, say Rs 1000.
Investment period- Enter the number of years that the SIP will be active. For instance, 20 years
Expected returns - Assume a 13 percent return on investment in an equities mutual fund.

When you enter the aforementioned amount and press the submit button, the result is displayed instantly. The total value in the above illustration is Rs 11,45,519, out of which the estimated return is Rs 9,05,519. That means that by saving Rs 1,000 per month for 20 years and expecting a return of 13%, the investor can accumulate a corpus of Rs 11,45,519 Lakhs.

Consider a simple example to understand how a SIP calculator works:

Let's assume that you have just started earning and your friend recommends you to invest Rs.2,000 per month for the next 10 years. Given the market sentiments, the expected rate of return is around 10%. Before investing, you would want the idea of your maturity value at the end of the duration.

How will you find it? With Kuvera's SIP calculator, all you have to do is input these quantitative values and voila! You get the answer to your question.

Here, you will have invested Rs.2,40,000. So by the calculation, your maturity value will be approximately Rs.4,13,104, considering that the rate of return remains 10% throughout 10 years.

You can also set the future financial goal in the box given and find out how much you need to invest and at what frequency. In this case, you will be required to answer a few other qualitative questions, as we mentioned. This will give you a better answer incorporating essential life aspects.

You can also use Kuvera's goal planning tool to create a financial goal for yourself and understand how to plan your investments. You'll discover that Kuvera, unlike other calculators, considers qualitative variables, such as your dependence on your parents, marital status, goals, and purpose of investment, inflation, and impact of the long-term capital gain tax. These variables affect your spending patterns; thus, your savings and investments are affected too. It's vital to think about them in detail before investing. Kuvera's goal planner takes these into account to set your monthly investment goals and recommend a plan.

Advantages Of Using SIP Calculator

A mutual fund SIP calculator offers the following advantages:

To identify the right mutual fund scheme

We are all aware that mutual funds are subject to market risks. No one can provide a definitive answer on expected returns. This calculator enables you to overcome these obstacles and make an informed decision. By entering your investment values into various SIP calculators, you may determine your risk-return ratio. Consequently, you can select the mutual fund scheme that suits your risk profile.

Financial planning

By utilising the Kuvera SIP Calculator, you are likely to be well-informed about the expected returns and maturity value of your monthly investments. If you want to make a large investment in the future, you can estimate your holding position and make smarter planning decisions.

Ease of use

This computer-operated calculator saves you a substantial amount of time and effort when calculating expected returns. However, you may visit this calculator, input your values, and obtain the result from anywhere in the world with only one click.

Compounding benefit

SIP is computed using compound interest. While a small number of people can calculate this manually, it is a difficult undertaking for the majority of us, especially for long-term investments. This is no longer a concern thanks to this calculator. These calculators include the compounding function and provide quick, precise results.

HOW TO INVEST IN A SYSTEMATIC INVESTMENT PLAN (SIP) ON KUVERA?

Kuvera is a zero commission online investment platform which allows investors to start SIP within seconds. It is important to note that Kuvera offers only direct plans of mutual funds which are free from any kind of brokerage charges or commission charges. Please see below how you can commence SIP in the mutual fund of your choice on Kuvera:

Step 1: Download the Kuvera app or visit our website and sign up.

Step 2: Complete your KYC with PAN, Aadhaar, and In-person verification through video. It is mandatory to complete KYC compliance under the Prevention of Money Laundering Act, 2002 and the Rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.

Step 3: Select the 'Invest' option from "Home"

Step 4: Select 'Mutual Funds', and see the categories listed, or check All Mutual Funds

Step 5: You will be directed to a list of all mutual funds available in Kuvera. By clicking on every mutual fund scheme, you can check its risk profile, net asset value, and past performance. In this section, we have included the performances of its counterparts to help you compare. To be sure, check the exit load and lock-in periods of the mutual fund. This will help you decide if you are ready for a commitment of the mentioned years.

Step 6: Select the MF scheme you want to invest in, and tap on SIP investment. Enter the amount on the next screen and tap on "Buy now", or "Add to cart".

Step 7: Under the payment option, you will find, 'Mandate'. You can select that.

Step 8: You will be redirected to your bank account. Complete all the formalities and approve the process with your authorised signature.

Step 9: The first instalment will be deducted immediately, and the next instalment will be deducted based on the SIP date (Please note that the next instalments are deducted after around 30 days).

Step 10: The next step is to approve a mandate for the deduction of SIPs. The mandate is approved by the bank for the next instalments of SIPs, and it normally takes 3-4 days for approval. The amount of money will be deducted only based on the instructions you provide in your SIP. For example, if you have registered for Rs 30,000 through SIP, only that much will be deducted. If your daily SIPs exceed 1 lakh, you can choose to set up the SIPs for a different date.

FAQs

Online investing in India simplified - Kuvera

Are you looking to invest in direct mutual funds or stocks?

Welcome to Kuvera — the first 100% free online investment and financial planning platform. Discover the best investment options without subscription fees, hidden charges, or commissions, and give more power to your investments.

At Kuvera, we make investing easy, and the experience awesome. Benefit from our AI-powered technology to super-charge your investments. Set your financial goals, invest in only direct plans, minimize your long term tax impact through tax harvesting, manage family accounts, consolidate your entire investment portfolio, and more.

How to Select and Invest in the Best Mutual Fund Plans in India?

Starting your investment journey with mutual funds can be challenging. At Kuvera, we make it easier with goal planning, selection of funds, tax optimisation, and more. Create your financial goal to know the required investment amount as a lump sum and/or SIP and check out our intelligent recommendations of funds. Or choose your preferred MFs and get started. Kuvera is an online investment platform that offers direct plans with zero commissions and charges zero subscription fees.

Are you searching for the best direct mutual funds to invest in?

The Kuvera app is one of the best mutual fund apps you can use to select investments for your portfolio. Simply follow the given steps:

Step 1: Download the Kuvera app on your smartphone, or sign up on our website with your email id and mobile number. Step 2: Get on board with our quick and simple KYC flow. Step 3: Go to 'Invest' and discover direct mutual funds based on your requirement.

There are several ways to find the best-performing mutual funds on Kuvera. Explore different categories of mutual funds based on your risk appetite, including equity, debt, and hybrid funds. You can also consider investing in global funds and NFOs through Kuvera.

You can also plan your specific financial objectives like owning a home, child’s education, a dream wedding, or building a retirement corpus through goal-based money investment. Enter the amount required for your goal, and the time you have. Viola! Kuvera will tell you how much you need to invest and the best mutual fund schemes that will help you accomplish the goal.

Keep Track of Top Stocks with Kuvera

To maximise your wealth, the key is to find stocks that have the potential to outperform the market. Before buying, you need to do thorough research on the stock's fundamentals. Kuvera makes it easy to find the best shares to invest in with all the necessary details in one place.

Search for any stock and track share prices on the Kuvera app. Keep an eye on stocks that are top gainers/losers for the day, or ones with 52-week highs or 52-week lows, along with total market capitalization.

Click on any stock you want to analyse on the Kuvera, the best investment app, and get all the details you’ll need.

The stock’s real-time price
Day’s high
Day’s low
52 week high
52 week low
1-year return
5-year return
Price-to-earnings (PE) ratio
Price-to-book (PB) ratio
Earnings per share (EPS)
Market cap
Trading volume
Dividend yield

You can also check the company’s detailed history and its financials, including the balance sheet, income statement, and cash flow. What’s more, you can also compare these details of stock with industry peers on the Kuvera app.

Import your stock portfolio on Kuvera and get a single view of all your investments. Track MFs, stocks, FD and insurance - all on one dashboard.

International Money Transfer with the Kuvera App

At Kuvera, we offer a faster and more affordable option for international money transfer through our partner Wise (formerly Transferwise). It is a smarter alternative to traditional international transfers and makes it easy to send money to your loved ones.

In contrast to some providers who sneak a markup into the exchange rate, Wise uses an exchange rate provided by Reuters to ensure fair and low-cost transfers. There are no hidden charges involved, and you can track the status of your transfers.

Transfer your money online using Wise through these few simple steps:

Step 1: Create a free account with Wise on its website or app. Step 2: Enter the transfer amount and your bank details. Step 3: Input account details from the Kuvera app. Step 4: Enter the rest of the required details and click ‘Confirm’. Step 5: Pay for your transfer using your preferred payment method.

In addition to the various benefits of transferring money through Wise, you can win an Amazon Pay Gift Card worth Rs. 1000 on your first international money transfer.

Invest in fixed deposits with the Kuvera App

Fixed deposits are one of the oldest and safest investment options offered by financial institutions. As an individual, you may want to diversify your portfolio by investing in such safe and fixed-income investments. That is why the Kuvera app lets you compare interest rates and invest in FDs.

Fixed Deposit facilities offered by Bajaj Finance Limited (“BFL”), Shriram Finance Limited ("Shriram") and Mahindra Finance Limited ("Mahindra") through commercial arrangements between Vueark Technology Services Private Limited (“VTSPL”), a 100% subsidiary of AASPL, and each such Fixed Deposit issuer.

To invest in FDs through the Kuvera app, follow the given steps:

Step 1: Go to the ‘Invest’ section and click on FD. Step 2: Find the best FDs for your investment based on your preferred tenure. Step 3: Click on the name of the investment to view the details, and then select 'Start FD'. Step 4: Enter the investment amount, tenure, and deposit option (cumulative/non-cumulative), and click on ‘Continue’. Step 5: Add details of your bank account to start investing.

You can compare FDs with similar tenure on the Kuvera app to find which financial institution is offering the best interest rates. Moreover, our app lets you calculate your returns from investments.

Why Choose Kuvera?

Are you looking to invest in direct mutual funds or stocks?

By investing in direct plans on Kuvera, you can earn up to 35% more in 20 years as you do not have to pay any commission ever.

For a longer answer, take a look at some of the benefits you will get by investing through our website/app.

100% free platform: A big reason why people consider Kuvera to be the best investment platform in India is that we impose no charges/fees. Kuvera’s online platform is completely free to use, with no feature locked behind a paywall. There are no fees, hidden commissions, or AUM linked charges
On your side: At Kuvera, we want you to invest at your own pace and comfort. We enable you to become your own wealth manager. And that’s why we created an investing experience that has no place for any #FOMO or pressure. You won’t find “hot tips”. Kuvera is your safe space to invest.
Switch to direct plans with Tradesmart: Regular plans for mutual funds can be cumbersome and expensive. But, what can you do if you already have one? We offer Tradesmart, which lets you switch to direct plans of the same plan. Now, you have no need to continue paying commissions.
Achieve your financial goals: Everyone has a dream, which might involve owning a car, purchasing a new home, sending kids abroad for education, or having ample funds after retirement. With Kuvera’s goal-based investment, you too, can make your dreams a reality.
Better account management: With Kuvera’s automated tracking facility, you can easily track your entire investment portfolio. You can also let your financial advisor guide your investment decisions by adding him/her as a manager to your Kuvera account.
Manage your family’s account: You can add multiple accounts to your login ID, which will allow you to look after your family members’ investments.

Kuvera is the one platform for all your investment needs. We have an experienced team of data-driven ex-money managers and technologists who understand your investment-related requirements.

Frequently Asked Questions

1. Can I start an SIP using the Kuvera app?

Yes, you can start a Systematic Investment Plan (SIP) using the Kuvera platform. Create your goal to get our recommendations, or find an MF of your choice. Select it and enter the amount for SIP and / or the lump sum amount you want to invest. If you do not have a folio, you can create a new one to start investing.

2. What is the use of following goal-based money investment?

It is common to spend money impulsively on things like a fancy gadget or an expensive vacation and end up not having enough funds for the important stuff. A goal-based investment prevents this as you are less likely to take money away from your goal of child’s education or retirement. When the money is tagged against a goal, we get more committed to ensure the financial goal is on track.

3. How do I create my financial goal on Kuvera?

To create your financial goal, follow these steps:

Step 1: Go to Create a Set a Goal Step 2: Enter an estimated cost of that goal. Step 3: Enter your age, investment period, planned loans, and upfront investment (if any). Step 4: Kuvera app will show the required monthly investment for this goal. Step 5: Add this goal to view recommended investments.

4. How does Kuvera’s Tax Harvesting technique work?

Tax Harvesting is a technique that involves benefitting from LTCG tax on equity funds. Long-term capital gains earned from equities and equity-related investments are taxable at a 10% rate on returns above Rs. 1,00,000 in a financial year. If you sell and buy back part of your investments every year, you can save on taxes. This utilises the ₹1 Lakh annual LTCG exemption by selling and buying back part of your investment such that you “realise” gains and not pay taxes on the exempt Rs 1 Lakh of LTCG. At Kuvera, we monitor your portfolio and recommend a transaction when applicable. We use sophisticated modelling to decide when is the right time to harvest taxes. Then we recommend the transactions you need to execute to harvest LTCG.

5. Why would I want to switch from a regular plan to a direct plan for mutual funds?

In regular plans, you pay commissions to the broker or the distributor, which can be as much as 1.5% of the value of your holding, every single year. This 1.5% leakage can make a huge difference, if you look at the compounded value over years. By investing in Direct Mutual funds, you save this commission every year. If you compare an investment of Rs 1 lakh in a Direct Plan and a Regular Plan, your investments will be worth 35% more in just 20 yrs when you invest in Direct Plans.

Direct MF plans are better than regular plans because they generate higher returns, have higher NAV, have no risk of mis-selling and give you full control of your investment.