Tuesday, August 26, 2025

Mutual funds: What is Goal SIP Calculator and how can you use it to achieve your financial goals?

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Mutual funds: The ‘Goal SIP (systematic investment plan) Calculator’ is a simple but crucial tool that helps investors achieve their financial goals. It tells investors how much total investment they need for a particular goal and the monthly SIP needed to attain it. 

This can be computed by entering three vital data points: goal of wealth, duration of investment and the expected rate of return.

Here is how you can use it

You can access the Goal SIP Calculator on mutualfundsahihai.com. Suppose your financial goal is 50,00,000 and it is 10 years ahead. Based on the expected rate of return, you can calculate your total investment. If the expected rate of return is 11 per cent, the monthly SIP amount would be 23,041 and the total investment would be 27.65 lakh. 

This means you would need a monthly SIP of 23,041 for the next 10 years before it accumulates to 27.65 lakh. 

The required investment would change as you change the expected rate of interest. For instance, when you make it 12 per cent (instead of 11), the monthly SIP amount would become 21,735 and the total investment would be 26.08 lakh.

Likewise, if you want to accumulate 1 crore in the next 10 years, and the expected rate of return is 12 per cent – you will have to invest 52.17 lakh by investing 43,470 per month.

Advantages of Goal SIP Calculator

I. Required investment: You can find out what is the required investment to be made for accumulating desired amount of wealth and how much will be the monthly SIP.

II. Find the range: You can find a range of return (based on your expected rate of return). For instance, you can select the SIP based on a minimum rate of return that you expect from your portfolio. If current expectations are 12 per cent per annum, you can make an investment at 11 per cent per annum.

III. Time duration: The calculator also offers flexibility regarding time duration. When your financial goal is 10 years, for instance, you can make plans for the next 8-10 years. There should always be some room for changes and improvements.

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