Axis Bank SIP Calculator

SIPs (Systematic Investment Plans) are among the most popular investment options. The possibility of higher returns than FDs and RDs makes them a preferred option for investors. The ability of SIPs to enable financial discipline by allowing an investor to invest a fixed sum in mutual funds at regular intervals also adds to their popularity.

With the multitude of SIP options available, it is natural to get confused about the right choice of plan for your needs. Ascertaining SIP returns and comparing various options can make the choice easier. You can also calculate SIP returns by using an sip calculator . 

A SIP calculator is an efficient tool that can help you know how much a SIP will yield and if that is sufficient for your goals. Therefore, in some ways, it helps to make informed investment decisions. The online Axis Bank SIP calculator is a robust tool that allows you to calculate your returns on your SIPs with Axis Bank. 

The Axis Bank SIP calculator on Angel One’s platform can be accessed for free. It offers you a fair idea of what to expect as the outcome of your investment.

Using the online Axis Bank SIP calculator is quick and hassle-free. You need to follow the steps below to use the online tool on the Angel One website: 

Step 1: Enter the SIP amount you plan to invest regularly.

Step 2: Using the slider, enter the duration of the investment.

Step 3: Use the slider to enter the expected rate of return for the SIP.

The Axis Bank SIP calculator will now show the estimated returns and thetotal value of your SIPs upon maturity. 

Let’s take an example to understand these steps. Suppose you want to invest Rs. 1,000 monthly as SIP for 12 months. The expected rate of interest for the mutual fund is 12%. 

Here, the expected monthly rate of return will be 12% / 12 = 1/100 = 0.01

In this case, M will be:

M = 1,000X ({[1 +0.01] ^ {12} – 1} / 0.01) x (1 + 0.01)

You will receive Rs. 12,809 approximately, once the SIP matures. This will, however, vary based on the performance of investments and the resultant rate of return.

Alternatively, the calculator allows you to ascertain the estimated monthly SIP amount you would have to invest to achieve a financial goal. You can do this by switching to the target amount calculator on the same page. Here, you are required to input the target amount, which is the money you need to fulfil a certain financial goal, along with the expected rate of return from the mutual fund scheme and the tenure of investment. The tool will then display the amount that needs to be invested as SIP every month to reach the target.

For instance, if you intend to accumulate Rs. 5,00,000 in 5 years and the expected rate of return from the mutual fund scheme is 12%; entering these values in the target amount calculator would yield Rs. 6,062 as the monthly SIP investment required.

Using a SIP calculator offers the following benefits:

• Minimises errors: A SIP calculator minimises human errors and calculates the returns accurately.
• Saves time: Using a SIP calculator saves a significant amount of time by eliminating the need for cumbersome manual calculations.
• Helps you compare: You can use the SIP calculator to compare the returns and the maturity amount of two or more SIPs. The comparison will enable you to better ascertain which SIP suits your financial goals.
• Free of cost: The online SIP calculator is free irrespective of the number of times you use it, and you can access it anytime, anywhere.
• Easy to use: The calculator is quick and convenient. All you need to do is enter a few inputs and it will do the calculationautomatically.
• Informed investing: It is a great financial planning tool. It gives you the expected returns based on which you can make informed decisions.

Several factors can influence your SIP earnings. Let’s look at some of these factors:

1. Tenure: The return on a SIP is linked to the tenure. SIP lowers the cost of investment over time. Hence, a longer tenure results in higher returns.
2. Risk: When investing in an SIP, remember that you are investing in mutual funds which are subject to market risks. Therefore, you should plan your investments in a way that helps you in mitigating the risks.
3. Rate of return: The return rate applicable to SIPs is linked to the market. Hence, it keeps fluctuating. You must check the past returns of the SIP to better understand how the fund has been performing and how the rate of return has changed.