Are you are thinking of investing in a mutual fund using the systematic investment plan route, commonly called as SIP? How can you calculate the monthly amount that you need to invest in order to meet a particular financial goal? For example, if you want to fund your next overseas vacation (costing Rs. 5 lakhs today) 2 years from now how much money should you put in a SIP month on month?
To answer your question I have created a SIP calculator. Just enter the current value of your financial goal, which in this case is Rs. 5 lakhs, the expected rate of return which I have assumed as 12% per annum (I recommend to take a historical average, around 12-15%), the number of years you want to accumulate the amount in and the inflation rate which I have taken as 8% in this example. The inflation rate is important because it affects the future rate of your financial goal. So at 8% inflation a thing that costs Rs. 100 will cost Rs. 108 in a year from now.
As you can see you will need to invest Rs. 21, 407 in order to fund a vacation that costs Rs. 5 lakhs today.
Go ahead and download the SIP calculator. Happy investing.
its really amazing. thanks
Thank you.
Truly no matter if someone doesn’t know
then its up to other visitors that they will help, so here it takes place.