Can I use a Mutual Fund Returns Calculator for SIP investments?

Yes, a Mutual Fund Returns Calculator is highly useful for Systematic Investment Plan (SIP) investments. SIPs allow investors to contribute a fixed amount at regular intervals, thereby leveraging the power of compounding over time. When you use a calculator for SIP investments, you typically input several key details:

• Monthly Investment Amount: The fixed amount you plan to invest each month.
• Investment Duration: The total time you plan to invest, usually in years.
• Expected Annual Return Rate: The anticipated rate of return based on historical performance.

For instance, if you decide to invest ₹5,000 monthly for 10 years with an expected return of 12%* p.a., the calculator will project the total amount accumulated at the end of the investment period, including returns. This feature allows you to visualise the potential growth of your investments and helps in better financial planning.

Bear in mind that actual returns may vary due to market fluctuations, but the calculator provides a useful estimate for planning purposes.