What is SIP?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds that allows investors to invest a fixed amount of money at regular intervals (usually monthly). It is a disciplined approach to investing that helps you build wealth over the long term without trying to time the market.
Instead of investing a large lump sum all at once, a SIP allows you to start small. By investing regularly, you benefit from "Cost Averaging" and the "Power of Compounding."
Benefits of SIP Investment
- Financial Discipline: SIPs encourage a regular saving habit since a fixed amount is automatically deducted from your bank account every month.
- Cost Averaging: Since you invest a fixed amount regularly, you buy more units when the market is low and fewer units when the market is high. This averages out your cost per unit over time.
- Power of Compounding: The returns you earn on your investment start earning returns themselves. The longer you stay invested, the more your money grows exponentially.
- Flexibility: You can start a SIP with a very small amount (as low as रू1000) and can increase, decrease, or stop it at any time.
SIP Calculator for Nepal (NRB approved funds)
Whether you are investing in mutual funds or participating in NRB (Nepal Rastra Bank) approved open-ended mutual funds in Nepal, the mathematics of compounding remains the same. Our SIP calculator provides results formatted in your local currency.
Simply enter your monthly investment amount, the expected annual return rate, and the time period. The calculator will instantly show you the total invested amount, the estimated returns, and the final maturity value. Use the year-wise breakdown table to see exactly how your wealth multiplies over the years!