Who doesn’t want to be a crorepati, driving a luxury car and living in a luxurious house? Or maybe you dream of becoming a crorepati because you want to travel the world or retire with no stress.
Honestly, becoming a crorepati is not that unimaginable in the world we live in today. You need to start investing in the right financial instrument regularly. Investing in mutual funds via the Systematic Investment Plan (SIP) route can help you build a fortune over some time. If you want to calculate how much it will take to become a crorepati, you can useSIP calculators to estimate the same.
What is a SIP?
A Systematic Investment Plan or a SIP is a way to invest in mutual funds at regular intervals. You invest a fixed sum every month, quarter or at another interval of your convenience. That builds investment discipline, and the power of compounding helps your money grow.
What is aSIP Calculator?
ASIP calculator helps you compute the maturity value of a series of investments over a specific time with an estimated growth rate. SIP calculators can be convenient if you want to know your total investment amount after a while. For instance, it can help you plan for future financial goals with a fixed timeline.
How Does aSIP Calculator Work?
ASIP calculator is a pre-programmed online tool that gives your investment maturity amount based on three parameters: a regular investment amount, the time of investment and an expected rate of return. With these, the calculator will tell you how much your money will grow and give you a split-up of the invested amount versus the returns.
For instance, let’s say you invest a sum of Rs. 20,000 in mutual funds through SIPs for 15 years. You expect to get an average return of 12% on your investment. By inputting these data points in aSIP calculator, you will see that your investment will grow to Rs. 1,00,91,520. Yes, you can become a crorepati with a monthly investment of Rs. 20,000!
Now, if you want to achieve the goal of becoming a crorepati sooner, say in 10 years, then you can change the input details to get an estimate of how much you will need to invest. At the same expected rate of return, you would have to invest Rs. 45,000 via SIPs to get a total maturity amount of Rs. 1,04,55,258 in 10 years.
You can use ICICI Direct’s SIP calculator to compute your financial goals quickly.
Benefits of aSIP Calculator
- A SIP calculator helps you plan your finances to reach your financial goal in the best possible way
- You can choose which mutual fund scheme to invest in based on returns using a SIP calculator.
- Most SIP calculators are simple to use with accessible interfaces. It will save you the trouble of doing complex calculations on your own.
- The output gives you the total maturity value and a break up of the invested amount and the interest earned. That can show you how much your money grows in monetary terms.
Takeaway
Mutual funds can help you build wealth over time and reach your financial goals. Using aSIP calculator, you can estimate how your money will grow based on period investments. As illustrated, it can also help you become a crorepati over time. ICICI Direct’s SIP calculator can help you in this endeavour.
