Due to its systematic approach and potential to provide substantial returns over time, investing under a Systematic Investment Plan (SIP) has become quite popular.
Understanding how to compute the average Net Asset Value (NAV) is essential if you want to evaluate the performance of your SIP investments effectively.
In order to make the process easier we will go into detail on how to calculate the average NAV of a SIP and tools like the ET Money SIP Calculator.
Understanding NAV of SIP
The price of one unit of a mutual fund is its NAV.
The acronym NAV stands for net asset value.
Retail investors make contributions to mutual funds, which subsequently use those monies to buy bonds, stocks and other types of investments.
Sometimes mutual funds may choose not to invest all of their available capital. Additionally, they make investments in stocks, and over time, the value of those stocks changes.
Mutual funds are divided up using units. When you invest in a mutual fund, you acquire units of the fund.
The total assets owned by a mutual fund are represented by the NAV.
How to calculate the average NAV of a SIP?
- Average NAV= (Sum of (Invested Amount * Corresponding NAV)) / Total Invested Amount
- "Invested Amount" describes how much money you put into each SIP instalment. "Corresponding NAV" = The Net Asset Value at the time of that SIP instalment.
- "Sum of" = indicates that for all SIP instalments, you must total the Invested Amount and Corresponding NAV products.
- "Total Invested Amount"= The total of all investments made during the SIP duration
What is a SIP calculator?
A SIP return calculator is an easy-to-use application that allows people to determine the returns on investments in mutual funds. One such reliable SIP calculator is the ET Money SIP calculator.
These mutual fund investment calculators were developed to provide potential investors with a rough estimate for their mutual fund investments.
However, there are a number of other factors that might affect the actual returns provided by a mutual fund scheme. The SIP return calculator does not take into account the exit loan or expenditure ratio.
This calculator determines the wealth growth and expected returns for your monthly SIP contribution.
Based on a predicted yearly return, you can really get an approximate idea of the maturity amount for any of your monthly SIPs.
What advantages can a SIP return calculator provide you?
SIPs, in the opinion of many mutual fund professionals, are a more beneficial form of investing than flat payments.
It helps you form a saving habit that will benefit you in the future as well as good money management techniques.
Online SIP estimators are practical resources that predict your potential returns on investment.
Here are a few benefits of SIP calculators:
- Determines the amount you desire to invest for you.
- Provides details on your total investment.
- Provides an expected return value.
Benefits of using the ET Money SIP calculator
The best SIP calculator is provided by ET Money and includes the following benefits:
- 1. Plan your investment based on the amount and term.
- 2. It assists you in calculating an estimate of the entire investment value at the conclusion of your SIP duration.
- Displays precise results and saves you time compared to manual computation.
Your portfolio is ensured to be in accordance with your financial demands by a systematic investment plan calculator.
Conclusion
To assess the efficacy of your investing plan, you must master the computation of average NAV in a SIP. You can make wise investing selections thanks to the accuracy and simplicity of online tools like the ET Money SIP Calculator.
You can maximise the power of SIPs to help you reach your financial objectives by being aware of and using these tools.
Consider using tools like the ET Money SIP Calculator as essential partners in your financial path. Consistent monitoring and modification are the keys to successful SIP investments.
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