What is a SIP Top Up calculator?

SIP Top Up Calculator tool is useful for investors who would like to increase their investment income along with their growth in income, spending and cost of living. This tool will enable the investor to understand how they can stimulate growth in their investment income by gradually growing their SIPs on a periodic basis. The tool assumes that your expected rate of return is constant over the selected period, which may vary with your actual investments made in real time.

How does SIP Top Up Calculator work?

Inputs required by the SIP Top Up Calculator:

• Monthly SIP amount: The investor needs to input the monthly investment amount.
• Top Up % (Annual): The investor would have to input the percentage increase in monthly SIP that they would like to foresee every year.
• Investment Period: The investor needs to select the number of years for which they would like to make the monthly investments in a mutual fund scheme.
• Expected Rate of Return: The investor also needs to feed in the expected rate of return that one may expect on an annual basis.

Output:

The SIP Calculator would consume the inputs provided by the investor and would give them the estimated Future value of the systematic monthly investments (after taking into account the annual Top Up) made by the investor and the Expected return the investor may earn over and above the investments made by the investor

SIP Top Up Calculator Illustration:

Let's assume that an investor wants to invest Rs.10,000 on a monthly basis for a period of 10 years that will give them an expected rate of return of 12% p.a. The investor would also like to increase the monthly SIP amount every year by 10%.

The following will be the inputs for using SIP Top Up Calculator:

• Monthly SIP amount: Rs.10,000
• Annual Top Up: 10%
• Investment Period: 10 years
• Expected Rate of Return: 12% p.a.

This will provide the investor with the estimated Future value of investments, Monthly investments using Annual Top Ups made by investor and the expected returns earned:

• Total estimated Future value of investments (A): Rs.33,74,326
• Total Monthly investments made by investors (B): Rs.19,12,491
• Total Return earned by the investor (A - B): Rs.14,61,835

Basis the estimated Future value of investments and Expected return, the investor may change the Monthly SIP amount or Annual Top Up or Investment Period or Expected Rate of Return in order to attain the desired Expected returns that an investor wants to achieve over the given period of time.

SIP stands for Systematic Investment Plan

Disclaimer: This calculator is meant for investor education and awareness purpose only and shall not be considered as any recommendation to make investments in the schemes of Angel One Mutual Fund. Please consult your financial / tax advisor(s) before taking any investment decisions.

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