How Does A Mutual Fund SIP Calculator Work?
A Systematic Investment Plan (SIP) is a trustworthy and intriguing investment plan with promising results. Further, the expected returns can be simply calculated using the SIP calculator, assisting in decision making. But what’s the exact method of calculation of returns in this type of mutual fund investment? Is it reliable? It is necessary to understand the associated risks and to decide accordingly. Therefore, let’s understand what SIP entails in mutual funds.
What is SIP?
SIP is referred to as the mutual fund investment tool. It allows the deposit of certain amounts at a specific frequency, which ranges from weekly to yearly. The deposited amounts invested in mutual funds are subsequently translated to larger amounts over time, as per the deposit scheme. Using the compounding method ...