1. Is SIP the same as mutual funds?

A SIP (Systematic Investment Plan) is a method of investing regularly in mutual funds. Mutual funds are the investment avenues where SIPs are used.

2. Can I change my SIP amount?

Yes, you can modify your SIP amount by contacting the mutual fund provider or through their online platform.

3. Can I have multiple SIPs?

Yes, you can invest in multiple SIPs across different mutual fund schemes.

4. What happens if I miss my SIP payment?

If a SIP is missed for three consecutive months, it will be automatically cancelled. While the Asset Management Company (AMC ) won't impose penalties for missed SIPs, the bank may charge a fee for defaulting on payments. 4

5. Can I track the performance of my SIP investments?

Yes, you can monitor your SIP performance through the mutual fund’s website, mobile app, or by contacting their customer service.

6. What are the factors that affect my SIP returns?

SIP returns are influenced by market conditions, fund performance, investment duration, and the rate of return of the mutual fund.

7. Can I stop my SIP temporarily?

Yes, you can pause your SIP temporarily and resume it later, subject to the mutual fund’s policies. 4

8. How can I renew my SIP?

SIPs automatically renew at the end of the tenure unless you choose to discontinue. If you want to start a new SIP, you need to submit a fresh application.

9. Do I have to pay taxes on SIP investments?

The taxation of SIP investment depends on the type of mutual fund that you choose. If you invest in Equity Linked Saving Scheme (ELSS), the SIP investment would qualify as a deduction from your taxable income under Section 80C (in case of old tax regime) up to a limit of ₹1.5 lakhs 3 . Investment in other mutual funds does not offer any tax benefit.

10. What is the maximum tenure of a SIP?

There is no maximum tenure for a SIP; it can continue indefinitely until you decide to stop it. 5

11. What are the factors causing fluctuation in SIP interest rates?

Fluctuations in SIP returns are caused by changes in market conditions, economic factors, interest rates, and the performance of the underlying mutual fund.

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SIP Calculator

A SIP (Systematic Investment Plan) calculator is a financial tool designed to help you plan and assess your investment strategy in mutual funds. By inputting parameters such as the monthly investment amount, the expected rate of return, and the investment duration, the SIP calculator provides estimates of the future value of the investment and the total returns. ..Read More

The SIP calculator helps you systematically grow your savings by projecting how regular contributions will accumulate with compounded growth, enabling informed investment decision-making.Read Less

Calculate Your Returns

I know my

Investment Amount

Goal Amount

Investment Amount ₹

Fifteen Thousand

Expected Rate of Returns (%)

Time Period years

Total Investment

₹18,00,000

Over 10 years

Total Returns

₹34.85 lakhs

@ 12% CAGR^{^} After 10 years

Your Returns

Your Investments

Years	Investment Amount	Estimated Value	Estimated Gain
1	₹ 1,80,000	₹ 1,92,139	₹ 12,139
2	₹ 3,60,000	₹ 4,08,647	₹ 48,647
3	₹ 5,40,000	₹ 6,52,614	₹ 1,12,614
4	₹ 7,20,000	₹ 9,27,522	₹ 2,07,522
5	₹ 9,00,000	₹ 12,37,295	₹ 3,37,295
6	₹ 10,80,000	₹ 15,86,355	₹ 5,06,355
7	₹ 12,60,000	₹ 19,79,684	₹ 7,19,684
8	₹ 14,40,000	₹ 24,22,898	₹ 9,82,898
9	₹ 16,20,000	₹ 29,22,322	₹ 13,02,322
10	₹ 18,00,000	₹ 34,85,086	₹ 16,85,086
11	₹ 19,80,000	₹ 41,19,222	₹ 21,39,222
12	₹ 21,60,000	₹ 48,33,782	₹ 26,73,782
13	₹ 23,40,000	₹ 56,38,967	₹ 32,98,967
14	₹ 25,20,000	₹ 65,46,269	₹ 40,26,269
15	₹ 27,00,000	₹ 75,68,639	₹ 48,68,639
16	₹ 28,80,000	₹ 87,20,672	₹ 58,40,672
17	₹ 30,60,000	₹ 1,00,18,812	₹ 69,58,812
18	₹ 32,40,000	₹ 1,14,81,588	₹ 82,41,588
19	₹ 34,20,000	₹ 1,31,29,881	₹ 97,09,881
20	₹ 36,00,000	₹ 1,49,87,218	₹ 1,13,87,218

Pay ₹15k/Month for 15 Years After 30 Years

Get ₹1.17 Cr @ 8%* Or ₹45.64 Lakhs @ 4%*

*The assumed rate of returns indicated at 4% and 8% are illustrative and not guaranteed and do not indicate the upper or lower limits of returns under the policy

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AboutPalak Bagadia

Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.

Reviewed ByRituraj Singh

AboutRituraj Singh

Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.

What is SIP?
How to use the Systematic Investment Plan calculator?
How are SIP returns calculated?
Advantages of SIP calculator
How Does a SIP Calculator Work?
Types of SIPs
How to Invest in SIP?
FAQs

What is SIP?

A Systematic Investment Plan (SIP) is a disciplined investment approach where you contribute a fixed amount regularly to a mutual fund scheme. Instead of investing a lump sum, you commit to periodic payments—monthly, quarterly, or annually. This strategy helps in averaging out investment costs and mitigating market volatility through rupee-cost averaging. Over time, the investments grow through the power of compounding, helping you earn good returns. SIPs are popular for their ease of use, affordability, and the ability to help you build savings gradually while staying committed to your financial goals.

How to use the Systematic Investment Plan calculator?

Using a Systematic Investment Plan (SIP) calculator is straightforward and involves a few simple steps. First, enter the amount you plan to invest regularly, such as monthly. Next, specify the expected annual return rate and the duration of your investment in years. The calculator uses this information to estimate the future value of your investment.

How are SIP returns calculated?

The underlying formula¹ for SIP calculations is:

FV= P × ((1 + i)^{^} n - 1 ) × (1 + i)/i

Where:

FV is the future value of the investment,
P is the periodic investment amount,
i is the periodic interest rate (annual rate divided by the number of periods),
n is the total number of periods (investment duration multiplied by the number of periods per year).

To calculate SIP returns, you just have to enter the values and calculate the expected returns from your investment.

It's important to remember that the maturity value from an SIP calculator is an estimate, not a guarantee, as future returns can vary.

Advantages of SIP calculator

The SIP calculator is a valuable and insightful tool offering several advantages. Some of these advantages are as follows -

Target Amount Calculation

By analysing the investment frequency, duration, and expected returns, the SIP calculator can help you find the amount needed to meet your investment goals. This helps you assess the effectiveness of your SIP strategy.

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Time Efficiency

The SIP calculator is user-friendly and provides quick results, saving you from the complexities of manual calculations and allowing you to efficiently understand your investment outcomes.

Read Less

Informed Decision-Making

With the calculator you can find out the corpus that you can accumulate with a specified savings. This can help you make investment decisions so that you can plan for your financial goals effectively.

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Free of cost

The SIP calculator is completely free of cost. You can use the calculator online and check the estimated corpus without incurring any fee. You can also use the calculator multiple times for multiple investments and goals and plan your finances.

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How Does a SIP Calculator Work?

An SIP calculator works using the SIP return formula which has been discussed above. To use it, you need to input details such as the monthly investment amount, the investment duration, the frequency of contributions (monthly, quarterly, etc.), and the expected rate of return.

The calculator then applies the principle of compounding to estimate the future value of your investments. For instance, if you invest ₹5,000 monthly for 10 years at a 12% return rate, the future value could reach ₹11.61 lakh, with gains of approximately ₹5.61 lakh. Extending the investment to 15 years might increase the future value to ₹25.22 lakh, demonstrating how compounding benefits from longer investment periods.

Types of SIPs

SIPs come in several types to suit different investor preferences. Some of these types are as follows²-

Regular SIP

This popular SIP type entails investing a set amount at consistent intervals, like monthly or quarterly. The amount is automatically debited from the investor’s account. Regular SIPs leverage rupee-cost averaging, which helps mitigate market fluctuations.

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Flexible SIP

Flexible SIPs allow you to adjust your contribution amounts based on your financial situation. Contributions can be increased, decreased, or paused, providing adaptability to changing financial needs.

Read Less

Top-up SIP

Enables investors to increase their SIP contributions at predefined intervals. This is useful for those who expect their income to rise or receive additional funds, helping to keep pace with inflation and enhance potential returns.

Read Less

Trigger SIP

This SIP allows investors to set conditions for their investments, such as investing more when the market reaches a certain level. This offers a tactical approach to capitalise on market opportunities.

Read Less

Perpetual SIP

Also known as Evergreen SIP, it continues indefinitely until the investor decides to stop it. This is ideal for long-term investors seeking a hassle-free investment option.

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Each SIP type provides different advantages, helping you align your investment strategy with your financial goals and market conditions.

How to Invest in SIP?

To invest in a Systematic Investment Plan (SIP), here are some considerations that you can keep in mind:

Define Goals: Identify your financial goals, risk tolerance, and investment horizon. Research the SIP options that align with your objectives and then choose a fund which best matches your needs.
Select a Mutual Fund: Choose a fund based on performance, management, expense ratio, and reputation. Ensure it matches your risk profile and goals.
Complete KYC: Submit your identity proof, address proof, and PAN card to fulfil KYC requirements.
Fill Application Form: Complete the SIP application form, specifying the investment amount, frequency, and start date.
Start Investing: Once you have completed the investment formalities, you can start investing in the chosen SIP. You can make the first investment yourself after which the subsequent SIPs would be auto-debited from your bank account.

Monitor Investments: Regularly review and track your SIP performance. You can increase, decrease or pause your SIPs if your investment strategy changes.

Frequently Asked Questions

Read All

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Reference:

1.https://cleartax.in/s/sip-calculator

2.https://www.livemint.com/money/personal-finance/mutual-funds-5-different-types-of-sips-in-india-and-their-features-151690255306294.html

3.https://cleartax.in/s/elss

4.https://www.livemint.com/money/personal-finance/mutual-fund-sip-what-happens-when-you-miss-a-monthly-contribution-11665935639708.html

5.https://groww.in/calculators/sip-calculator

Disclaimers:

^{^}Returns are 10 year compounded annualized growth rate (CAGR) as on 13/8/2024 (DD/MM/YYYY)

Tax benefits as per prevailing Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

The output generated through calculator are on the basis of the data filled in by you and is being provided to you solely for your reference purpose and not to be construed as investment advice. Please seek independent advice from your insurance consultant before making any investment decisions. While proper caution has been taken in designing this calculator, Bajaj Allianz Life Insurance Co. Ltd. assumes no liability for the accuracy of the information and data provided in this tool.p>

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Goal Assure II - A Unit- Linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L180V02), Bajaj Allianz Life POS Goal Suraksha - A Non Linked, Non Participating, Individual, Life Insurance Savings Plan (UIN: 116N155V11) are only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

This advertisement is designed for combination of Benefits of two individual products named (1) Bajaj Allianz Life Goal Assure II - A Unit- Linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L180V02). (2) Bajaj Allianz Life POS Goal Suraksha - A Non Linked, Non Participating, Individual, Life Insurance Savings Plan (UIN: 116N155V11). These products are also available for sale individually without the combination offered/ suggested. The customer is advised to refer to the detailed sales brochure of respective individual products mentioned herein before concluding the sale.

*Conditions apply- The Guaranteed benefits are dependant on the policy terms, premium payment terms availed along with other variable factors. For more details please refer respective product sales.(Also available on www.bajajallianzlife.com). This benefit is available with Bajaj Allianz Life Pos Goal Suraksha. brochure.

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BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS

IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

CIN: U66010PN2001PLC015959 | Registered Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune-411006, Maharashtra

Email: customercare@bajajallianz.co.in | Tollfree: 1800 209 7272

Disclaimer: Images used on this website and the models photographed in them are for representative purposes only and are not indicative of anyone's personal thoughts or ideas.

The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo.

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Disclaimer

For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. The terms and conditions of product/plan as contained in the Policy Document issued by the Company is available on the Web Site. The names of the Company, Products/Plans/funds do not indicate the quality and its future prospects or returns. IN ULIPs, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time. Goods and Services Tax will have to be borne by the Policyholder as per applicable rates. All other charges shall be levied in accordance with the terms and conditions of the policy.

This calculation and results displayed are based on information provided and certain assumptions about the rates of return. It is for assistance only and does not constitute an offer or solicitation. It is not intended to be and must not alone be taken as the basis for an investment decision. Kindly note that the returns are only illustrative and they are not guaranteed. The returns do not indicate the upper or lower limits of the return that you may get with your policy and the value is dependent on a number of factors including future performance. Bajaj Allianz Life Insurance Company Limited shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.

¹©2021 Morningstar. All Rights Reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. The information, data, analyses and opinions ("Information") contained herein: (1) include the proprietary information of Morningstar and its content providers; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates and procured from various sources. Morningstar, its affiliates, and its officers, directors and employees shall not be liable for any trading decision, damage or any other loss arising from using the Information. Please verify all of the Information before using it and do not make any investment decision, except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up

Disclaimer

SIP Calculator

What is SIP?

How to use the Systematic Investment Plan calculator?

How are SIP returns calculated?

Target Amount Calculation

Time Efficiency

Informed Decision-Making

Free of cost

How Does a SIP Calculator Work?

Regular SIP

Flexible SIP

Top-up SIP

Trigger SIP

Perpetual SIP

How to Invest in SIP?

Frequently Asked Questions

Customer Speaks

Life Insurance Guide

Articles

Calculators

Podcasts

Videos

Popular Searches