HSBC SIP Calculator
SIP Calculator
Calculate Your SIP Returns
Summary
The above calculation is based on the formula:
FV = P × ({[1 + i]^n – 1} / i) × (1 + i)
Visual Breakdown
Yearly Breakdown
| Year | Investment Amount | Wealth Gained | Expected Amount |
|---|---|---|---|
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a disciplined approach to investing where you can invest a fixed amount at regular intervals in mutual fund schemes. It's similar to recurring deposits in a bank, but with potentially higher returns aligned with market performance.
SIPs help investors benefit from rupee cost averaging and the power of compounding. With rupee cost averaging, you buy more units when prices are low and fewer when prices are high, averaging out your investment cost over time.
Benefits of SIP
- Disciplined approach to wealth creation
- Start with small amounts (as low as ₹500)
- Rupee cost averaging reduces market timing risk
- Power of compounding helps grow your money
- Flexibility to increase, decrease, pause or stop investments
How SIP Returns are Calculated
The SIP calculator uses the following formula to calculate returns:
FV = P × ({[1 + i]^n – 1} / i) × (1 + i)
Where:
- FV is the future value (the amount you'll receive at maturity)
- P is the amount you invest through SIP
- i is the periodic rate of return (annual rate / 12 for monthly SIP)
- n is the number of payments (investment period in months/years)
Important Notes
- The returns shown by this calculator are only indicative and not guaranteed.
- Actual returns may vary depending on market conditions and fund performance.
- It's advisable to consult a financial advisor before making investment decisions.
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