How is SIP calculated?

In an SIP, a predetermined amount is invested in the mutual fund every month. In a lump sum deposit, the amount invested is a constant figure on which the return is calculated.

…

Absolute Return.

Initial NAV	Rs. 50
Final NAV	Rs. 65
Absolute Return [(Final NAV- Initial NAV) / Initial NAV]*100	[(65-50)/50]*100 = 30%

How is SIP calculated with example?

Take an example where you invest Rs 2,000 per month for a tenure of 24 months. You expect a 12% annual rate of return (r). You have i = r/100/12 or 0.01. You get Rs 54,486 at maturity.

How is SIP Redemption Value calculated?

Hence, you keep accumulating units from the day your SIP starts. On the day you exit the scheme, i.e., redeem your total units, you get the maturity amount, which is NAV (of redemption day) multiplied by total units (on redemption day).

How is SIP formula derived?

When you decide to stop the SIP and redeem your investment, you get the amount generated over your investment period. That amount is calculated by multiplying the total number of units owned till date by the NAV of the scheme of the redemption date.

Which SIP is best for 3 years?

Top SIP Mutual Funds in India

SIP Plans	Type	3 Year
HDFC Balanced	Balanced Fund	10.65%
HDFC Mid Cap Opportunities Fund	Equity Fund	14.84%
HDFC Prudence Fund(G)	Balanced Fund	9.02%
HDFC Small Cap Fund	Equity Fund	21.52%

Is SIP better than FD?

The money is typically invested in an equity mutual fund scheme. If you are new to the world of mutual funds, an SIP is one of the best investment options for you.



SIP vs FD.

Parameters	Fixed Deposit	Systematic Investment Plan
Liquidity	High	Low/Medium
Risk factor	Low	High
Returns	Guaranteed	Can’t be guaranteed

How is CAGR of SIP calculated?

In an SIP, a predetermined amount is invested in the mutual fund every month.



Compounded Annual Growth Rate (CAGR)

Initial investment value	Rs. 1,50,000
Final investment value	Rs. 2,00,000
Number of years (n)	5
CAGR [(Final investment value / Initial investment value)^(1/n)] – 1	[(200000/150000)^(⅕)] – 1 = 0.05 = 5%

How do you calculate SIP in Excel?

Steps to calculate XIRR in excel:

1. Enter all your transactions in one column. …
2. In the next column, add the corresponding date of the transaction.
3. In the last row, mention the current value of your holding and the current date.
4. Now below that, use the XIRR function, which is like this =XIRR (values, date, guess)*100.

What is SIP NAV?

NAV or Net Asset Value is the unit price of a mutual fund scheme.

Is SIP tax free?

SIPs can be one of the best tax-saving instruments with high returns on your investments. You can claim a deduction of up to Rs. 1.5 lakh from your taxable income for investing in ELSS through SIPs under Section 80(C) of The Income Tax Act, 1961. With the highest tax slab of 30%, you can save up to Rs.

What is Blue Chip fund?

Blue chip funds are equity mutual funds that invest in stocks of companies with large market capitalisation. These are well-established companies with a track record of performance over some time. However, as per SEBI norms on mutual fund categorisation, you don’t have an official category called Blue Chip funds.

Can I lose money in SIP?

Yes, there is a possibility of losing money in a mutual fund. The basics of a mutual fund is that you have a mutual fund manager: he or she is in charge of the fund; he selects the stocks, he may trade the fund; he may select groups of stocks to invest in, and that makes up the mutual fund.

Which bank is best for SIP?

5 Best Banking Funds SIP To Invest In India 2021

Banking Mutual Funds	1 Year Return	5 Years Return
SBI Banking & Financial Services Fund	83.11%	20.01%
Tata Banking and Financial Services Fund	71.13%	19.5%
Invesco India Financial Services Fund	74.97%	18.25%
Sundaram Fin Services Opp Reg	81.58%	16.63%

Can I withdraw SIP anytime?

– You do not need to sell all your top SIP units. – If you have purchased close-ended schemes or open-ended schemes, you can redeem them anytime. – If you have invested in ELSS, you cannot redeem your units before 3 years. – You can redeem your SIP investment only on a business day.

Which SIP is best for beginners?

5 Best SIP plans to invest in 2021 for Beginners

Fund Name	NAV	Minimum SIP
Mirae Asset Tax Saver Fund	Rs 29	Rs 500
PGIM India Midcap Opp	RS 37.29	Rs 1000
Mirae Asset Emerging Bluechip Fund	Rs 90	Rs 1000
Parag Parikh Flexi Cap Fund	Rs 43.13	Rs 1000

What is difference between mutual fund and SIP?

SIP is the short form of systematic investment plan. While mutual fund is an investment product or instrument, SIP is a method of investing in mutual funds. As the name suggests, through a mutual fund SIP you can invest systematically over a period of time and create a corpus to meet your different financial goals.

Is LIC better than mutual funds?

Life insurance is less risky in comparison to mutual funds. However, it offers guaranteed death benefits. Mutual funds are market-linked investments, and hence are highly volatile. LIC schemes offer low returns.

What is SIP in HDFC Bank?

Systematic Investment Plan (SIP) is an approach which involves investing a set amount at regular intervals rather than investing a larger lump sum amount in one shot.

Is SIP better than RD?

In terms of liquidity, a SIP is better when compared to RD. SIP can be closed and the money can be withdrawn without any penal charges. Recurring Deposit amount or the interest earned on it are not exempted from tax.

Can I stop SIP after 1 month?

1. You can start SIPs by opting for a period of investment. The minimum SIP period is 6 months and there is no limit of maximum period. Even after choosing a particular SIP period, you can discontinue in between by writing to the Asset Management Company and there are no charges for stopping the SIP in between.

What is minimum period for SIP?

There is no fixed tenure for SIP. However, the minimum period is six months.

What is the minimum interest rate in SIP?

The table below shows the best equity funds:

Mutual fund	5 Yr. Returns	Min. Investment
BOI AXA SMALL CAP FUND Direct Plan – Growth	—	₹5000
ICICI Prudential Technology Fund	32.18%	₹5000
TATA Digital India Fund DIRECT Plan Growth	34.77%	₹5000
Aditya Birla Sun Life Digital India Fund – Growth-Direct Plan	32.75%	₹1000

Can I do SIP for 20 years?

The best SIPs in equity or international mutual funds have the potential to compound. This can help investors accumulate a large sum of money in the future.



1. High Returns.

Fund Type	10-Year SIP Returns	20-Year SIP Returns
Equity	₹11,23,390	₹75,91,479
International	₹15,86,572	₹1,27,59, 549

What is return percentage in SIP?

SIP returns for various mutual funds may vary. On an average, for large cap equities, a return of 12-18% can be expected whereas from mid-cap equities, a return of 14-17% is expected. However, in case of a long-term debt-based mutual fund, one can expect a return of 6 – 9 % p.a.

Which is best SIP for long term?

Large-Cap Schemes

Scheme Name	5-Year Monthly SIP	10-Year Monthly SIP
ICICI Pru Top 100 Fund (G)	Rs.9,41,591	16.02%
Quantum LT Equity Fund (G) – Direct Plan	Rs.9,15,695	16.86%
Reliance Growth Fund (G)	Rs.10,75,057	18.05%
SBI BlueChip Fund – Reg (G)	Rs.9,55,955	16.86%

Which SIP is best in SBI?

Best Performing SBI Mutual Fund Schemes for SIP Investment

Fund Name	1 Year Return	3 Years Returns
SBI Infrastructure Fund	-12.9%	8.2%
SBI Magnum Children’s Benefit Plan	11.17%	15.46%
SBI Magnum Multi-cap Fund	10.84%	15.56%
SBI Magnum Tax Gain Fund	7.46%	9.99%

Which is the best mutual fund to invest in 2021?

India’s best performing mutual funds for December 2021

Name of Fund	1-Year Return	3-Year Return
Axis Blue-Chip Fund (G)	20.641%	19.641%
Canara Robeco Blue-Chip (G)	24.544%	21.031%
Mirae Asset Large Cap (G)	27.736%	17.861%
Data Source: Morningstar