In today's world, beating relentless inflation and securing your future hinges on a solid investment strategy. Yet, navigating through countless options often leads to more confusion than clarity. Sometimes, investment decisions go unexecuted due to a lack of action, while other times, over-diversification of your portfolio can cause a misalignment between your goals and returns. An average investor may also find this intimidating or end up with the wrong funds. The answer to this is to cut the clutter and have a goal-based investment strategy.
Goal-based investing helps you accurately assess financial liability for milestones like purchasing a home, funding your children's education, or retiring in comfort. All you need to do is set your goals, set aside a fixed amount at fixed intervals, pursue this strategy with precision and believe in the power of compounding. Policybazaar’s SIP calculator can ease this process for you by aligning your investments with specific life goals.
Get started with goal-based investment planning
It’s important to first decide what you want to save up or invest for. Investors often end up parking their money in different funds and then mapping their financial goals to them, which ultimately leads to a disconnect between the two. Goal-based investment encourages you to work backwards, calculate your liabilities, and then systematically plan your investment.
To facilitate this process and have a clearer picture of your financial future, you can use the SIP calculator from Policybazaar. It’s an online tool designed to compute potential returns for Systematic Investment Plans. By entering details such as the investment amount, duration, and expected return, the calculator predicts future wealth. This assists investors in making well-informed decisions and facilitating the implementation of systematic and disciplined investment strategies.
How the SIP calculator works
- The SIP calculator is a flexible and user-friendly tool that lets you define your investment strategy for specific life goals.
- You can calculate your financial liability and returns by entering the amount you want to invest. Alternatively, you can also enter the corpus or goal amount that you want to accumulate.
- You can adjust your investment amount to monthly or yearly frequency. In case, you have a lumpsum amount, you can enter that as well, along with the duration for which you want to invest.
- SIP calculator simplifies the calculations for you and shows you the expected rate of return that you’ll get on your investment and the total amount by the end of the tenure.
- On the other hand, if you enter the total amount you want to accumulate, it shows you how much you need to put aside for how long and what frequency.
- You can then check out the top-performing funds on the SIP calculator page.
Financial planning simplified
Retirement planning - Suppose you are 35 years old and want to invest Rs 20,000 monthly for 25 years for your retirement. With an expected 12% rate of return, your investment of Rs 60 lakh could grow to Rs 3.8 Cr., resulting in Rs 3.2 Cr. in returns.
Planning for children’s education - Let’s say you have a 2-year-old child and want to save Rs 40 lakh for college fees in 15 years. The SIP calculator will show you that you roughly need to invest Rs 7,900 per month to attain this goal. Your total invested amount will be Rs 14.3 lakh, and your gains will be Rs 25.7 lakh at an expected 12% return rate. It’s that simple!
So, if you're thinking about investing in different funds through SIPs, Policybazaar's SIP calculator can help you make smart choices. It lets you estimate potential returns, making it easier to pick the best SIP plans that fit your needs.
Click the link below to use the SIP Calculator and align investments with your goals.
https://www.policybazaar.com/sip/sip-calculator/
Financial Disclaimer: Investments are subject to market risks, and the risks are borne by the investors. Please consult your financial advisor before planning your investments.
Previous
