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Posted on 1/13/2021 9:00:00 AM

Systematic Investment Plan or SIP is a mode of investing in mutual fund schemes which lets you invest a fixed amount at pre-defined intervals. You can start investing in scheme with as low as INR 100. When it comes to calculating your potential returns on any mutual fund investment, it might help you to refer to a returns calculator online. You can key in/ insert the amount that you wish to invest, set the time period that you wish to stay invested for, and calculate the potential returns that you might earn upon maturity of your investment. Due to the many factors influencing the mutual fund industry, it may not be possible to ascertain the returns that might be received through an investment in a mutual fund scheme. As mutual funds tend to be affected by market volatility, among other factors, the performance and returns cannot be guaranteed.

Mutual fund companies offer a varied range of mutual fund schemes that may suit different investor requirements. Certain mutual fund schemes might offer individuals two options – a growth option and dividend option. In case an investor chooses the growth option, then the excess earned on their investment can be reinvested in the scheme as they continue to remain invested. On the other hand, investors who chose the dividend option may receive any excess amount depending on the availability of the distributable surplus and subject to the approval of the trustees. There is also an option which allows investors with the choice of reinvesting the dividend received in the same scheme.

It might help investors to thoroughly go through the scheme information documents of the scheme of their choice to understand its investment style, objectives, expense ratio any other charges, and tax implications and so on. When investors choose to invest correctly, it might help them achieve their financial goals in a disciplined manner.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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