Groww SIP Calculator: A Complete Guide

10 mins read
Groww SIP Calculator: A Complete Guide

If you want to invest your money in SIP but are confused about where to invest, then this article is for you. There are many apps available, but Groww is one of the best known. Groww was established by Lalit Keshre in 2016. His target market remains predominantly millennials and tech enthusiasts who are curious to learn more about finance. He sought to build an app for all investors. In this article, you will learn about SIP and how to use Groww SIP calculator, SIP lumpsum calculator and Groww calculator.

Groww SIP Calculator: A Complete Guide

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Groww won’t let you down if you enjoy making SIP investments. Investing in funds is simple through monthly SIPs. Choose your SIP amount and the date, and Groww will invest your money in the specified investing instruments on those days automatically. But before we learn about SIP Calculator, we need to understand SIP. Let’s go.

What is SIP?

Piggy bank | Groww SIP Calculator
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SIP means Systematic Investment Plan. Mutual fund companies provide this type of investing program. One can periodically (weekly, monthly, or quarterly) put a little amount into a chosen mutual fund by using a SIP. A SIP provides ordinary investors with a passive, controlled investment strategy that can build long-term wealth (using the power of compounding). The sum is invested on a routine basis (often monthly), which lessens the effect of market instability.

How SIP Works?

Man picking up coins | Groww SIP Calculator
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When you sign up for one or more SIP plans, money is automatically deducted from your bank account and put into the mutual funds you’ve bought at the scheduled interval. The units of mutual funds will ultimately be distributed to you based on the NAV of the mutual fund.

As you invest in an Indian SIP plan, more units will be added to your account based on the market rate. As each investment is made, the amount being reinvested and the return increase. Receiving the returns at the conclusion of the SIP’s duration or on a regular basis is entirely up to the investor.

For example, let’s say you have 30,000 INR in savings that aren’t doing you any good. You have made the decision to do so in order to invest that money in mutual funds.

A mutual fund program allows you to purchase the appropriate number of units for INR 30,000 in a single lump transaction. Do not forget that the majority of equity mutual funds have a lock-in term of three to five years. Alternatively, you can split your payment into smaller portions of INR 5,000 or INR 2,000. This sum can be put into the same plan each month.

Groww SIP calculator

Groww SIP calculator

Calculating the returns on your Systematic Investment Plan (SIP) investments is simple and sensible with the aid of a SIP calculator. An easy-to-use tool called a SIP calculator enables people to estimate the returns on their SIP-based mutual fund investments. One of the most well-liked investing alternatives for millennials recently is SIP mutual fund investments.

The purpose of these mutual fund SIP calculators is to estimate the returns investors can expect from their mutual fund investments. However, a mutual fund scheme’s actual returns might vary based on a number of variables. The exit load and expenditure ratio in the SIP calculator are not explained (if any).

The wealth increase and anticipated returns for your monthly SIP investment are calculated using this calculator. In fact, based on a predicted yearly return rate, you receive a preliminary estimate of the maturity amount for each of your monthly SIPs. You can access this calculator from Groww official site.

How does Groww SIP calculator work?

Woman using phone | Groww SIP Calculator
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Let us break down the way Groww SIP calculator works. A SIP plan calculator uses the formula given below:

M = P × ({[1 + i]n – 1} / i) × (1 + i)

In the formula above,

  • Amount received upon maturity is M.
  • P is the sum that you consistently invest.
  • Your total number of payments is n.
  • The interest rate on a periodic basis is i.

Benefits of Groww SIP calculator

You may be wondering what is so special about Groww SIP Calculator, here are some of its benefits:

  • Better planning for your mutual fund SIP investments.
  • After the SIP duration is over, get an estimate of the entire worth of your assets.
  • Save time on laborious computations and get reliable outcomes.
  • It assists you in calculating an estimate of the entire investment value at the conclusion of your SIP duration.

Lumpsum Investment

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Mutual fund investments can be roughly divided into two categories: lumpsum and SIP. Investing in lump sums, often known as one-time investments, involves making a single commitment and letting the money grow through compound interest over a predetermined period of time.

Most investors favor lump sum investments in particular since there are fewer variables involved and profits are often higher.

What is SIP Lumpsum calculator?

Coins and pen | Groww SIP Calculator
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An investor could use a mutual fund lumpsum calculator online to calculate expected returns on a lump sum investment.

Simply input the one-time investment amount, the number of years for which the money will remain invested, and the estimated rate of return. The mutual fund lumpsum calculator determines the maturity amount for lump-sum or one-time mutual fund investments based on the present value of the investment.

How does SIP Lumpsum calculator work?

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The predicted return on investment is calculated using a particular methodology by every lumpsum calculator mutual fund. It is simply a compound interest formula with the number of times the interest is compounded in a year as one of the variables.

The equation reads as follows:

A = P (r/n + 1) nt

The variables represent the following:

  • A – Projected return
  • P – Value now
  • r –  Return rate
  • t – Time period or length of the investment
  • n – Number of annually compounded interest rates

You can calculate your mutual fund returns precisely using this formula.

Also Read: Groww Charges, Brokerage Calculator and More

Benefits of Lumpsum calculator

Lumpsum calculator can be of immense use. It can help you calculate your funds smartly. Here are some benefits of lumpsum calculator.

  • Since mutual fund returns are susceptible to market risks, they cannot be computed with precision. Using a calculator will give you the most accurate estimation.
  • You can organize your funds based on the anticipated returns thanks to it.
  • As it is an online tool, you can access it from anywhere at any time. Time and space restrictions are gone.
  • You will save time and effort because these computations might take a while. It might take hours to manually do computations for several variations.

Groww is a straightforward and incredibly user-friendly tool for both novice and experienced investors and traders. You can easily invest in mutual funds either by SIP or lumpsum investment. It provides the accurate and best results for every investment. With the platform, you can also invest in a mutual fund managed by any AMC.

We hope this guide has given you an exact explanation of how to use Groww SIP calculator, SIP lumpsum calculator and Groww calculator. You can now save the hassle of calculating your SIP and let these calculators do the work for you.

Sushma Singh

Sushma is a full-time blogger and financial expert. Join Sushma and 10,000 monthly readers here to learn how to save and invest your money wisely.