BackHow to Shape Your Investment Strategy with Bajaj Finserv Mutual Fund’s Online SIP Calculator
Investing in mutual funds through SIP will not only encourage financial discipline but can also help in building wealth over time
PremiumProper planning is a key to success in any pursuit, and financial planning is no exception. And, with the increasing importance of financial security, having a sound investment strategy can do wonders.
Thus, if you are planning to start your investment journey, Systematic Investment Plans (SIPs) can prove to be a good option. Investing in mutual funds through SIP will not only encourage financial discipline but can also help in building wealth over time. However, the question arises, how much of your monthly income should you invest in SIP? Well, this is where an online SIP calculator can help your finances.
How does an SIP investment calculator work?
Bajaj Finserv Asset Management Ltd. offers a free SIP calculator online. Enter your instalment amount, the investment period, and the expected rate of return. Based on these figures, the calculator will work out your total investment value.
Let’s take the help of an example to know more about how to use an SIP calculator.
Let’s say you have decided to invest Rs. 1,000 per month for 10 years and expect a 10% rate of return. When you input these figures, the SIP calculator online will show you that will earn Rs. 2,06,552 on your total investment of Rs. 1,20,000. This comes to an absolute growth of Rs. 86, 552. (For illustrative purpose)
However, it’s important to note that these figures are estimates and your actual returns will depend on the market performance and the fees charged by the asset management company, among other things.
How to use Bajaj Finserv Mutual Fund’s online SIP calculator?
Step 1 - Enter the amount that you wish to invest every month.
Step 2 - Choose the duration of your investment and expected returns.
Step 3 - Once you enter these inputs, the SIP calculator will show you what your invested amount is, what its future value will be, and what your returns will be for that chosen period.
Step 4 – To arrive at the SIP amount that suits your investment goals, you can simply change the amount you plan to invest every month or the tenure for which you plan to invest.
Why opt for an online SIP calculator?
When you invest small amounts, it may be difficult to envision what the eventual corpus would look like. Having an estimate, even a rough one, can help you determine how much to invest or what duration to look at.
A mutual fund SIP calculator can also help you decide your instalment amount or tenure. Are you saving for retirement? If so, your tenure would likely be longer, and you can choose smaller instalments. If you’re looking at a seven-year horizon, for your child’s higher education, for instance, you may need a slightly higher instalment amount. Conversely, if you know the amount that you can set aside, you can use the SIP calculator online to determine how long you should stay invested to meet your goals.
Trying different combinations of tenures, instalments and rates of return may also help you decide the type of fund to go for. If returns are your priority, if your risk appetite is relatively high, and if you are investing over a longer tenure, you can choose an equity-heavy portfolio. You can consider investing in Bajaj Finserv Flexi Cap Fund by visiting the investor portal of Bajaj Finserv Mutual Fund.
If your investment horizon is three years or lesser and you want relatively steady returns with less volatility, you may prefer a debt fund, which invests in fixed-income instruments such as bonds. There are several other mutual fund types as well based on asset class, risk levels, the size of the companies they invest in, the investment duration and much more.
By comparing different fund types and rates of returns, the calculator can also help you decide how much you want to invest in mutual funds and how much you’d prefer to keep in low-risk instruments such as provident funds and fixed deposits or in fixed assets such as real estate.
To conclude, a mutual fund SIP calculator can help you plan your investments better by giving you an estimate of the future value of your savings. However, it’s important to keep in mind that these figures are estimates and actual returns depend on several factors, including market trends.
About Bajaj Finserv Asset Management Ltd.
Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
