Alternatively, investors can use ICICI SIP calculator for the same. Hence investors use the XIRR function in MS Excel to do the same. This can get super messy when the investment is spread out over a period of 60-100 months. To calculate SIP returns manually, one has to estimate the cash flows and the dates on which the investment has been made. This will help investors to fulfil their financial goals as planned or even earlier without having to worry about inflation. Using this, one can choose to increase their SIP investment by a certain amount or by a certain percentage every year. Step-up SIP will help investors to combat the effect of inflation on their investment portfolio. SIP investing has an excellent option where one can increase the amount of investment periodically. Moreover, if the investors are low on cash for a couple of months, they can choose to pause their SIP and re-start it back whenever they want. The investors can start their SIP and forget about it as SIP investments are auto-debited from their bank account. One can start a SIP investment with an amount as low as INR 500. Investing in mutual funds with SIP is easy and flexible. Hence the longer one stays invested, the higher will be the probability of returns. The results of SIP investment will be better in the long term. In that case, the lower cost will minimise the impact of volatility on the investment. And suppose in the long term, the market volatility is high. By doing so, the cost of investment decreases. Since the investor is investing across market cycles, they will accumulate a greater number of units when the market falls, and a smaller number of units when markets rise. SIP not only helps in boosting returns but also helps fight market volatility. This will help investors to accumulate a significant amount of wealth in the long term. In the long term, the lower cost will help in boosting the growth. Since investors invest in mutual funds across market cycles, the average cost of investing reduces. With SIP investing, investors can benefit from financial discipline and rupee cost averaging. SIP investing gives maximum benefits in the long term (5+ years). It is the easiest way through which investors enter the stock market to get exposure to equities. In SIP investing, investors can invest small amounts of money regularly. Systematic Investment Plan (SIP) is the most accessible and popular investing option available to the common man. What is a Systematic Investment Plan SIP?
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