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How to Use the SIP Calculator to Create a Financial Plan of Earning Rs. 10 Crore in 20 Years

Investors looking to achieve their financial goals and create a substantial wealth of Rs. 10 crore in 20 years can rely on the Bajaj Finance SIP calculator. This powerful tool allows individuals to plan and strategize their investments effectively.

Mutual funds have gained immense popularity in India over the last decade. With the Assets under Management (AUM) of mutual fund houses growing five-fold from Rs. 8.68 trillion to Rs. 43.20 trillion between 2013 and 2023, they have become an ideal choice for long-term wealth creation.

The Bajaj Finance SIP calculator enables investors to invest in a disciplined manner through Systematic Investment Plans (SIPs). By contributing a small sum regularly over the years, investors can build a substantial corpus. Whether it’s about reaching financial milestones or fulfilling future aspirations, the SIP calculator proves to be an invaluable tool.

Using the SIP Calculator for Financial Planning

To utilize the SIP calculator effectively, investors can follow these simple steps:

Step 1: Visit the Bajaj Finance website and navigate to the Investment tab.

Step 2: Locate the SIP calculator under the Mutual Funds section.

Step 3: Choose the SIP option from the available alternatives.

Step 4: Enter the desired monthly investment amount, investment period in years, and expected returns.

Step 5: Click on ‘Calculate’ to obtain the results.

By adjusting the investment amount or the rate of returns, individuals can determine the SIP amount required to achieve their goal of earning Rs. 10 crore in 20 years. Alternatively, investors can also explore the lump sum option to calculate the returns on a one-time investment.

Making Rs. 10 Crore in 20 Years through Mutual Fund SIPs

Contrary to popular belief, growing wealth through mutual funds is not exclusive to the affluent. It is entirely feasible for individuals to accumulate Rs. 10 crore over 20 years by making regular investments via SIPs.

Let’s consider the example of Ms. Yajna, a working lady with an annual salary of Rs. 12 lakh. She aims to generate a retirement corpus of Rs. 10 crore in 20 years. With the help of the SIP calculator, she can determine that a monthly investment of Rs. 37,000 in an equity mutual fund scheme, which has shown a 19% Compounded Annual Growth Rate (CAGR) since inception, will help her achieve her goal.

The Benefits of the Bajaj Finance SIP Calculator

The Bajaj Finance SIP calculator offers numerous advantages to investors:

  • Instant Results: The online SIP calculator provides quick and accurate results, enabling investors to make informed decisions promptly. It saves time and effort by providing immediate calculations and comparisons.
  • Accurate and Flexible: With minimal margin for error, the calculator offers precise results. Investors can modify the values to determine the required investment tenure or rate of returns necessary to achieve their financial objectives. Even a slight adjustment can significantly impact one’s investment plan.
  • Informed Decision-making: The calculator empowers investors by providing a clear understanding of the investment amount needed to reach their financial goals. By entering the monthly SIP amount, expected rate of return, and tenure, individuals can instantly know the corpus value. If the projected corpus appears insufficient, they can increase the investment amount or tenure with ease.
  • Comparison of Mutual Fund Schemes: Investors can leverage the calculator to compare multiple mutual fund schemes. By checking the rate of returns for different time periods, such as 5 years or since inception, investors can assess the performance of various funds. They can then modify the return percentage while keeping the tenure and installment amount constant to evaluate the differences.

The Mechanism Behind SIP Return Calculations

The SIP calculator operates on the principle of compound interest. Compound interest is the interest calculated on both the principal amount and the accumulated interest over a specific period. By using the compound interest formula, investors can determine the future value of their investments.

In conclusion, investing in mutual funds provides individuals with the opportunity to accumulate and grow their wealth. To ensure a secure financial future, investors should consider using the Bajaj Finance SIP calculator. By making informed decisions regarding investment amounts and tenures, individuals can embark on a path to achieve their desired corpus. Remember to perform due diligence by considering various factors such as scheme objectives, expense ratio, past performance, and exit load before making investment decisions.

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