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Thread: Calculation of SIP

  1. #1
    PolicyWala NewBie
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    Default Calculation of SIP

    How to calculate return on SIP of any MF? Any Idea?




  2. #2
    Moderator CONFUSED's Avatar
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    Vijay,

    Very good question.

    There is no simple formula for calculating Returns of SIP. You have to do long calculations with calculator or use a computer program written for this purpose.

    SIP returns may be calculated as below -
    (Assuming SIP is monthly and take 30 days per months)

    Final Value of Investment = Monthly investment * ([(1+ R)**N - 1]/R) * [(1+ R)**M]

    whrere -
    N - No of monthly Installments paid
    M - Remaining days after date of payment of last installment / 30
    R - Monthly Rate of return

    R can be found out only by trial and error either manulaly or by a program.

    Single Star - Multiply
    Double Star - Raise to the power of

    e.g 4 ** 2 = 16 and 25 ** 1/2 = 5
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  3. #3
    Moderator Matrix's Avatar
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    Arrow

    You can calculate final value of your investment using FV function in excel where you have to put -

    fx=FV(A1,B1,C1) or FV(rate,nper,pmt)

    Where-
    1. A1 = Rate is the interest rate per period (Or Expected Rate of interest)
    2. B1 = Nper is the total number of payment periods in an annuity (Or Period for which SIP is done)
    3. C1 = Pmt is the payment made each period; it cannot change over the life of the annuity.Typically, pmt contains principal and interest but no other fees or taxes (Or Monthly SIP amount)

    This wil give you rough estimate of what your investment will be like after "X" yrs which is nothing but SIP period.

  4. #4
    Moderator Matrix's Avatar
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    Annualised rate of return = (1+R)**12 - 1

  5. #5
    NewBie
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    Default

    Quote Originally Posted by CONFUSED View Post
    Vijay,

    Very good question.

    There is no simple formula for calculating Returns of SIP. You have to do long calculations with calculator or use a computer program written for this purpose.

    SIP returns may be calculated as below -
    (Assuming SIP is monthly and take 30 days per months)

    Final Value of Investment = Monthly investment * ([(1+ R)**N - 1]/R) * [(1+ R)**M]

    whrere -
    N - No of monthly Installments paid
    M - Remaining days after date of payment of last installment / 30
    R - Monthly Rate of return

    R can be found out only by trial and error either manulaly or by a program.

    Single Star - Multiply
    Double Star - Raise to the power of

    e.g 4 ** 2 = 16 and 25 ** 1/2 = 5
    Hi,


    I want to calculate SIP with Inflation similar to the below link. Can you please help me out to calculate it?


    dspblackrock.com/resources/tools-and-calculators/future-value-of-SIP.aspx

  6. #6
    PW Stalwart >take's Avatar
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    Quote Originally Posted by geethu View Post
    Hi,

    I want to calculate SIP with Inflation similar to the below link. Can you please help me out to calculate it?

    http://www.dspblackrock.com/resource...ue-of-SIP.aspx
    The calculator is present in the above link..just put your values.

  7. #7
    NewBie
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    Default Need Formula To Calculate SIP

    Quote Originally Posted by >take View Post
    The calculator is present in the above link..just put your values.
    I want to implement in my site similar to the above link, so i wants the formula to do it.

  8. #8
    Banned
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    Are your shared assets giving you great returns? The Returns Calculator gives you an answer by figuring reserve returns for the period picked by you. It additionally shows returns and execution rank of the asset inside its companion bunch for various time periods.

  9. #9
    NewBie
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    We all know mutual funds come in various types, so it is very important for you to know which will be appropriate for your risk taking appetite. You can go with Kotak mutual fund and get good returns or you can check it through SIP return Calculator.


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