Union Bank SIP Calculator

Union Bank SIP Calculator

The Union Bank SIP Calculator is a simple online tool that helps investors estimate the future value of their investments made through a Systematic Investment Plan (SIP) in mutual funds. By entering key details such as the monthly investment amount, investment duration, and expected rate of return, users can get a clear picture of how their money will grow over time.

How the Union Bank SIP Calculator Works

A SIP allows you to invest a fixed amount regularly in a mutual fund. The calculator uses a standard compound interest formula to project the maturity amount, assuming monthly contributions and compounding.

Key Inputs:

• Monthly Investment (₹): The fixed amount you plan to invest every month.
• Investment Period (Years): The total duration of the investment.
• Expected Annual Return (%): Estimated annual return from the mutual fund.

Output:

• Total Investment: The sum of all monthly contributions.
• Estimated Returns: The profit earned from the investment.
• Maturity Amount: The total value of your investment at the end of the period.

SIP Formula Used

The formula used for calculating SIP returns is:

Maturity Amount = P × [(1 + r)^n – 1] × (1 + r) / r

Where:

• P = Monthly investment
• r = Expected monthly return (annual return ÷ 12 ÷ 100)
• n = Total number of payments (months)

Example

If you invest ₹5,000 per month for 10 years with an expected return of 12% annually:

• Total Investment = ₹6,00,000
• Estimated Returns ≈ ₹5,17,151
• Maturity Amount ≈ ₹11,17,151

Benefits of Using the Union Bank SIP Calculator

• Quick and accurate projections
• Helps in setting realistic financial goals
• Easy comparison between different SIP scenarios
• Supports informed mutual fund investment planning

Disclaimer : The results given by the above calculator are for illustration purpose only. They are often based on a number of assumptions. The results given are in no way any guarantee of the returns that will be given. Investments in stock markets and securities markets are subject to market risks and other risks. There is no guarantee of the return that will be actually given. Investment in other financial products may also be subject to market risks and other risks. There is no guarantee of the returns that will be given by them. The calculator also does not make any recommendation directly or indirectly. Please consult a registered Financial Advisor before taking any investment decision.