Stock market investment through Systematic investment plan or SIP helps risk-averse and dormant investors who wish to gain substantial returns without the need for regular trading or stock market analysis. A professional SIP return calculator can help investors make the right choices regarding the amount of monthly SIP and the returns they can generate through consistent investments. Serving as the most reliable online tool, investors can analyse the total corpus they can generate through SIP investments on maturity. Following are certain tips that investors can follow to plan their investments and utilize the SIP calculator for better returns and limited expenses:
- Analysis of budget and financial needs
Every investor must first understand the total amount he can invest through systematic investment plans. A complete understanding of the ultimate financial goal and daily expenses is necessary to begin with the systematic investment plan. Individuals must therefore make a decision regarding minimum as well as maximum SIP amount by factoring in various expenses and financial needs.
- Decide the SIP investment amount
Investors after identification of their financial goals and needs must determine the SIP amount that they can invest consistently without affecting their daily life. Investors can make use of the online SIP calculator and identify the best SIP investment amount that fits within their financial goal blueprint. However, investors are advised to make the decision rationally and select the SIP investment amount through proper decision-making and analysis.
- Period of investment
After deciding the SIP amount, investors must decide the period for which they wish to invest their hard-earned money in SIP mutual funds. Different types of investment plans or available that investors can select based on their preferences. Hybrid funds, equity large-cap funds, MidCap and small-cap funds, and even Flexi cap funds are available with different periods of investment, returns, and expenses. Investors can use the SIP calculator and input various variables like SIP amount and period of investment to make the right decision.
- Analysis of various mutual funds
Investors can even utilize the SIP calculator to identify the best mutual funds for better returns. Variables like SIP amount, period of investment, and the choice of mutual fund can be inputted into the SIP calculator which can help investors identify the best mutual fund that can generate substantial returns with minimum risk and expenses. The best mutual fund for SIP investment can be selected through the use of the SIP calculator like SBI SIP calculator as well as deep analysis of various mutual funds.
- Timely monitoring
Investors are advised to closely monitor the performance of their SIP investments and make necessary adjustments with time. Online SIP calculators can help investors make necessary changes regarding the amount of investment and additional mutual funds they can select for better returns. Through historical data on three and even five-year returns, the SIP calculator can help investors make adjustments to their SIP investment plans and mutual funds.
Conclusion
One can make rational decisions regarding the choice of mutual funds and SIP investment amount and even track the total returns through the use of the SIP calculator.
