Kotak SIP Calculator – An Easy Way to Calculate Your Returns

Systematic Investment Plan or SIP refers to the different investment schemes provided by the mutual fund companies. A person who invests in SIP would have to invest fixed amount of money periodically (annually, quarterly, monthly or weekly) into the fund they have chosen. It is very beneficial for retail investors since SIP allows a passive and a disciplined approach towards investing which creates wealth in the long term (by the process of compounding). One of the great things about investing in SIP is, your investment in the mutual funds remain unaffected by the market volatility.

How does the Kotak SIP Calculator work?

Systematic Investment Plan is a great way of achieving your long-term financial goals. The Kotak SIP Calculator helps you in calculating the wealth gain and also the expected returns that you can achieve from your SIP investment. The calculator gives you a rough estimate of the matured amount for any kind of SIP investment that you do. This amount is calculated on the basis of an estimated annual return rate.

The Kotak SIP Calculator consists of different options and you’d have to choose each one of them. The first option is of course the type of investment you would want to choose. There are several different ones; you could take the advice of your financial adviser in order to make the right decision. You then have to input the installment amount that you would like to invest at every interval. The frequency ranges between monthly and quarterly. The last thing you’d have to input is the date when you are starting your SIP investment along with the end date.

Benefits from Investing In a Systematic Investment Plan

Investing in a SIP allows you to average your purchase cost while maximising your returns. Investing regularly in a SIP over a certain period of time regardless of the state of the market, allows you to get more units when the market is low, and get less units when the market is high. This helps in averaging out your purchase cost of the mutual fund units. 

Another benefit that you can reap from SIP is from the power of compounding. Investing over a long-term period and earn more returns from the returns you get off your investment. This is how your money would start compounding. This is helpful in building up a large aggregate for your long-term financial goals with small investments regularly.

Therefore, take the help of Kotak SIP Calculator in order to make an estimate of your returns and start investing in Kotak Mutual Fund right away!

Top 10 Mutual Funds for SIP For Safer and Higher Returns

Top 10 Mutual Funds for SIP | Image Resource: freepik.com

Are you interested in mutual funds? Do you want to yield good returns without burning a hole in your pocket? Then, SIP – Systematic Investment Plan would be the apt choice for you. For those who are not aware of this term, it is nothing but a disciplined investment method that allows clients to get beneficial returns. Most of the mutual funds SIP plans are designed to provide flexibility for the investors. These plans need to be researched beforehand to get the ultimate benefit. 

Types of SIP plans To Match Your Financial Goals

Before investing in any SIP plan, the client must spend time in researching. Since the market is a changing field, it is mandatory to know what type of scheme you are choosing and what benefit you will avail. If you are unsure as to which scheme to choose, you can always get help from your financial advisors about the top 10 mutual funds for SIP. Kotak mutual fund house offers various SIP plans for both short-term and long-term investors. There are many other fund houses that provide SIP plans and you can get details about them online. 

Some Tips on How to Choose Best Mutual Fund for SIP 

There are many systematic investment plans to choose from. Kotak Mutual Fund SIP plans are designed to cater to the requirements of every type of investor. There are also other firms that provide specific mutual funds for SIP. Before investing, it is mandatory to take into account certain factors. Some of them include 

• Aim of investment – before investing, it is a must to understand the need for making the investment. The objective for the investment can vary based on the individual. It can either be to purchase a car or to buy a house, etc. Whatever maybe the case, it is a must to set a financial goal before investing in SIP mutual fund. 
• Know about the funds – some investors blindly invest in any fund they like without having prior knowledge about the type of plan. One needs to understand the reputation of the fund house as they will be investing your amount in the market. Researching beforehand will help you understand about the fund house, the services provided and the plans offered by them. 
• Comparison is a must – another important factor that has to be considered when investing in mutual funds is the comparison of funds. One must research and compare the performance of the funds over the years and then choose the plan. You can do it easily at just the touch of a button or get help from financial advisors. 

Know How To Invest In SIP Directly

 How to Invest in SIP Directly | Image Resource : freepik.com 

Mutual funds offer a good investment option. You can invest in mutual funds regularly. Systematic Investment Plan (SIP) allows this. You can invest a fixed sum of money regularly in mutual funds through SIP.

You should have a goal to achieve and invest accordingly. Identifying your goals is a must. You should know how much to invest and for how long. This depends on the amount you want to collect at the end of the investment period.

You can either consult a financial advisor or invest directly. If you are investing directly without any help then you should get enough knowledge on how to invest. You should select the funds which help you reach your goals and suit your needs. Once the funds are selected you should decide on the SIP amount to be invested regularly to reach your goal.

AMCs like Kotak Mutual Funds offer registering for SIP online. They offer form online which you can fill and submit. This is how to invest in sip directly. For offline you can download the form, fill it and submit it to the AMC. You get a account confirmation statement after your first SIP. You also get confirmation statements for your subsequent installments monthly.

You can start you SIP on any date of the month. But the installments have to be done on the dates offered.

Increase in the SIP amount
You can increase your SIP amount any time. For this you have to submit
    • A SIP form filled and with the new SIP amount.
    • A written and signed confirmation of the discontinuance of the existing SIP.

There are other options available if you want to increase your SIP. One of the facility allows you to increase your SIP any time. You just have to give the instructions to increase the SIP amount. The process is hassle free. You only have to register for the facility. This gives you investment flexibility throughout the duration of the SIP.

Another option allows you to invest depending on the market valuation. The amount of SIP invested is more if the market is low and the regular SIP amount gets invested if the market is high. This allows you to buy more units when the market is low and this way you can make the most of Rupee Cost Averaging. It is an automated valuation based investing.

Kotak Mutual Funds offers you the facilities to increase the SIP amount anytime. The process is simple and convenient.