Frequently Asked Questions
A SIP Calculator is an online financial tool that estimates how investments made through a Systematic Investment Plan may build over a selected period based on an assumed rate of return.
By entering your monthly SIP, investment tenure and Expected Returns (p.a.), you can estimate your investment value under different mathematical scenarios.
The Hexo Wealth SIP Calculator additionally allows you to consider your current portfolio value, Step-Up SIP, future lumpsum investments and inflation-adjusted withdrawals.
The results are illustrations and do not represent assured or guaranteed mutual fund returns.
There is no single SIP amount that is suitable for everyone.
The amount can depend on factors such as the financial goal, estimated amount required, investment horizon, existing investments, income and financial circumstances.
A SIP Calculator can help you compare different monthly investment amounts and understand how they affect the illustration.
SIP amounts can generally be modified or additional SIPs can be initiated subject to the facilities and processes available with the respective mutual fund.
The Hexo Wealth calculator allows you to illustrate a yearly Step-Up either as a percentage increase or fixed rupee increase.
This helps you understand how gradually increasing the monthly contribution changes the mathematical estimate.
The Additional Lumpsum feature allows you to include an amount that you expect to invest at a future point during your investment journey.
Simply enter:
Year Number + Lumpsum Amount
and the calculator includes that investment at the start of the selected year.
Multiple future lumpsum investments can also be included.
Enter the year in which the money may be required, the estimated cost in today’s value, and the inflation rate you want to assume. The calculator adjusts the amount using the selected inflation assumption until the chosen year and considers the inflation-adjusted withdrawal at the start of that year. This helps illustrate future requirements such as education or other major financial goals.
A SIP and Fixed Deposit are different investment options. A SIP is a method of investing regularly in a mutual fund scheme, where the investment value and returns are linked to market performance. A Fixed Deposit is a deposit product that offers an applicable interest rate based on the terms and conditions of the deposit-taking institution. The suitable option depends on factors such as financial goals, investment horizon, liquidity needs, and risk preference.
A SIP can provide a structured way to invest a predetermined amount regularly into mutual funds. However, being a first-time investor does not automatically make every mutual fund scheme suitable.
The underlying mutual fund should still be evaluated based on factors such as its investment objective and risk, along with the investor’s financial goal, investment horizon and risk profile.
No.
A SIP is simply a method of investing periodically into a mutual fund scheme. It does not guarantee a particular rate of return, maturity value or achievement of a financial goal.
Mutual fund investments are market-linked, and actual investment outcomes can differ from the estimates shown by the calculator. SEBI’s framework requires mutual-fund communications not to present misleading promises or forecasts and to give appropriate importance to investment risks.