When it comes to investments, it doesn’t get any more lucrative than Systematic Investment Plans. However, though investors can start with as little as Rs. 500 and gradually build a rich corpus with the help of a market expert, understanding how such a plan generates returns is essential to investing the right way. And this is exactly what an SIP calculator is for.
Given below are the four major advantages of using an online calculator for calculating your Systematic Investment Plans.
#1 You will receive accurate results, every single time
The number one benefit of using an online calculator for your mutual funds investment is that you get accurate results every single time. All you need to do is enter in details such as your monthly investment amount, tenure, and expected rate of returns and the calculator will give you precise results for the total invested amount, the total amount at the time of maturity, and the earnings on the investment.
Manual calculation, on the other hand, is susceptible to errors but with an easy online calculator, this issue is resolved.
#2 You will receive faster results
Not only does an online calculator give you accurate results, but it also gives it at lightning speed. If you choose to do manual calculation, you will have to apply multiple formulas to arrive at a conclusive total invested amount, total maturity amount, and the earning on your investment. So, before you apply for mutual funds online, run your numbers through an online calculator.
#3 You can make better investment choices
Who doesn’t wish to have the most profitable returns on their SIP investments, right? Well, an online calculator for the same helps you to predict the possible outcomes of your investment plans. You can change the tenure or the investment amount and see how the outcomes are affected as a result. Finally, the calculator helps you arrive at an investment amount or tenure that you find to be the most suitable.
#4 You can choose the best SIP investment
An online calculator for your Systematic Investment Plans also lets you adjust the interest rate. This is helpful in knowing the potential returns on different investments while the tenure and the investment amount remain constant. You can compare the outcomes of different Systematic Investment Plans and choose the one you find to be the best. This is one way of ensuring that your investments perform well and reap you high returns.
Investing in mutual funds India is indeed a highly lucrative investment option; however, this is only the case when you make an informed choice. A major part of it is using an online calculator that helps you know your investments and their possible outcomes beforehand. So, invest in Systematic Investment Plans, but only after a careful evaluation using an online calculator.