Estimate the maturity value of a monthly Systematic Investment Plan (SIP) in mutual funds.
A SIP invests a fixed amount every month, and each installment compounds for a different length of time. The maturity value is calculated with the future-value-of-annuity formula: M = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly investment, i is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months. This is an estimate based on the return rate you enter — actual mutual fund returns vary with the market.
Using the future value of a series formula: M = P × [((1+i)^n − 1) / i] × (1+i), where P is your monthly investment, i is the monthly rate of return, and n is the number of months.
No. The rate you enter is an assumption for estimation purposes — actual mutual fund returns fluctuate with the market and are never guaranteed. Use a conservative rate for planning.
No, this is a simplified estimate based on your expected annual return. Fund expense ratios, exit loads, and taxes on gains will reduce your actual net return.