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!
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