Using the CAGR formula, we can estimate SIP returns for Ms. At the time of withdrawal after seven years, the NAV is INR 50. Anu has invested INR 2,52,000 (INR 3,000 a month) in a mutual fund when the NAV is INR 20. Here is an example to illustrate SIP return calculation using HDFC SIP Calculator: The number of months or years is the tenure of the investment. It is the rate of growth of an investment in a year for the entire tenure of the investment.ĬAGR = (ending value/beginning value) ^ (1/number of years or months) – 1*100Įnding value is the Net Asset Value or NAV at the time of withdrawal,īeginning value is the NAV at the time of investment. However, the most effective method to estimate SIP returns is CAGR.ĬAGR is also known as Compound Annual Growth Rate. HDFC SIP return is calculated using different methods, namely absolute return, annualized returns, CAGR, and XIRR. It will take into account the given tenure and rate of growth during reverse calculation as well. The calculator will show the monthly SIP amount to be invested. An investor can also enter the target amount based on a financial goal to reverse calculate the investment amount. It also gives an estimate of the wealth to be gained from the mutual fund investments. HDFC online SIP calculator will use these inputs to automatically calculate the maturity amount. These are the monthly investment amount, number of years of investment, and expected rate of return on the SIP. The HDFC SIP calculator requires inputs from the investor. The calculator determines the return by taking into account the number of times compounding is applicable. HDFC SIP calculator uses the compound interest formula to estimate the potential return. How does the HDFC Systematic Investment Plan Calculator work? It can be higher or lower than the estimate given by the calculator. Also, the actual return from the mutual fund investment can differ from the estimated amount. Return will depend upon the performance of the mutual fund. The calculator can only give a fair idea but doesn’t guarantee any returns. Users must note that the HDFC SIP calculator only gives an estimate based on the inputs provided. It tells them the investment required to reach the target amount by the end of the preferred duration. Whereas, the target amount approach does calculation based on the amount an investor wants to achieve. The investment amount approach is useful for investors who know the amount they can invest periodically. The HDFC SIP calculator works on two calculation approaches – the investment amount approach and the target amount approach. The output generated clearly shows the maturity amount based on investment and potential capital gains. It includes both graphical and chart formats. Scripbox’s HDFC SIP calculator gives the output in easily comprehensible formats. An investor must enter investment amount or target amount, expected rate of return, tenure of investment, and step-up percentage. The ROI calculation is based on the simple inputs provided by the user. The calculator works automatically to calculate the return on investment. HDFC SIP Calculator is an online tool that is useful in estimating the return from a SIP investment. The actual returns are subject to fund and market performance. Returns from HDFC mutual fund sip plans are just an estimation based on the fund’s past performance and it doesn’t guarantee future returns.
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