BOI SIP Calculator
Our BOI SIP calculator is a great tool that allows investors to estimate the mutual fund returns on investments made using the SIP. The calculator allows individuals to calculate the SIP amount, which will help them reach their financial goals based on an expected annual return rate and investment duration.
For the past few years, SIPs have become one of the most preferred investment modes for many investors. It allows people to start investing in mutual funds for as low as ₹500 and helps them become disciplined investors. SIPs offer a lot of benefits to investors, such as rupee-cost averaging and the power of compounding.
How Does Our BOI SIP Calculator Work?
The calculator works on the below formula.
where:
FV is the future value of your investment
P is the monthly investment amount
r is the monthly interest rate divided by 12
n is the total number of months or the investment duration
Example:
You are planning to start a monthly SIP of 11,000 and expect an annual return rate of 8%. You wish to continue your SIP installments for 10 years. Here’s how the future value will be calculated based on the formula.
Firstly, change the annual rate of return to the monthly rate: r = 0.08/12 = 0.00667
Secondly, calculate the total number of months: n = 10 x 12 = 120
When we put the values in the above formula, here’s how the calculation will go.
FV = 11,000 x ((1 + 0.00667^120) - 1) / 0.00667
FV = 11,000 (1.22052) / 0.00667
FV = ₹20,12,851 (approximately)
How Should You Use The BOI SIP Calculator?
The BOI SIP calculator is pretty easy to use and is highly convenient for beginners and new returns to calculate the return on mutual fund investments. You have to follow the below steps to get an estimate of the return on your investments.
- The first step is to enter the amount that you would like to invest in the mutual fund through SIP.
- Then, you need to enter the rate of return you expect to earn from your investments.
- The last step is to enter the tenure of the SIP.
Once you follow all the steps mentioned above, the SIP calculator will show the return accumulated at the end of the tenure of the SIP.
Examples:
Mr. Gupta wishes to invest ₹1500 every month through SIP. He expects a rate of return of 9% and wants to stay invested for 5 years.
Using the above-mentioned formula, here’s how he can calculate the maturity amount of his investment.
The first step is to convert the annual rate of return to a monthly percentage: r = 0.09 / 12 = 0.0075
The next step is to calculate the total number of months: n = 5 x 12 = 60
When we put the above values into the above formula, here’s what he will get:
FV = 1,500 ((1 + 0.0075^60) - 1) / 0.0075
FV = 1,500 (0.56568) / 0.0075
FV = ₹1,13,136 (approximately)
So, if Mr. Gupta invests ₹1,500 every month for 5 years with an annual expected return rate of 9%, his SIP investments could potentially grow to ₹1,13,136.
Benefits Of Using BOI SIP Calculator
The BOI SIP calculator helps you make informed decisions on which mutual fund scheme to choose for your investment journey. Here are some other key benefits of the BOI SIP calculator.
- The calculator is extremely easy to use and an effective tool for estimating the approximate SIP returns of BOI mutual fund schemes.
- The calculator also removes the tedious computation of the maturity value manually.
- The calculator helps investors check the scheme's potential returns in a few clicks.