HDFC SIP Calculator

Systematic Investment Plan (SIP) is a popular way to invest in mutual funds. It helps you build wealth through disciplined, regular investments. But how much your SIP contributions can grow over a span of time can be estimated with the help of an online HDFC SIP Calculator. The calculator is easy to use and provides accurate results instantly. It requires just a few variables for making calculations and these variables can also be changed to compare different investment scenarios to find an ideal investment strategy for your financial goals before investing.

HDFC SIP Calculator works on a specific formula that is based on the principal of compound interest, which means your interest starts to earn interest over a period.  

The standard formula used for calculating SIP returns is:   

Where

• FV- Estimated future value of investment
• P- Invented SIP amount
• n- Number of SIP installments 
• i- Rate of return 

Note: The value of ‘i’ is calculated as {(1 + Annual Return)^1/12} – 1      

Example: Suppose, Rohan invests Rs. 5,000 monthly in an HDFC Mutual Fund for 15 years at an expected annual rate of return 11%. Then according to the formula, your SIP returns would be ₹21.85 lakh: 

Note: Actual returns may vary based on the fund performance, market fluctuation and other influencing factors.

HDFC MF SIP Calculator is simple and easy to use. You just need to provide values for the following:

• SIP Amount - The amount you wish to invest every month in HDFC mutual fund scheme. 
• Investment Tenure - The number of years you expect to stay invested in an AMC fund.  
• Expected Rate of Return - The annual rate of return you expect to earn on your investment over a period of time.

After entering all the details, the SIP calculator will instantly project the estimated maturity value of your investment including the total invested amount and projected return of your investment for the chosen time period.

How to Determine the Expected Rate of Return (RoR)?

As mutual fund returns are market-linked, there is no guaranteed rate of return. While using the SIP calculator, you can consider the historical returns of your chosen mutual fund as a reference for the expected return. However, past performance is not indicative of future results and the actual returns may vary depending on fund performance and market conditions at the time.   

HDFC mutual fund SIP Calculator can help you through the following way: 

• Estimates Future Wealth: Calculates estimated worth of your SIP investments considering investment amount, tenure and expected rate of return. 
• Compares Investment Scenarios: Modify the SIP amount, investment period & expected returns to compare different investment scenarios. 
• Determines Required SIP Amount: Helps estimate the monthly investment needed to achieve your financial goals within your desired time frame.
• Supports Better Financial Planning: Helps you match your investment strategy with your financial goals and investment horizon. 
• Provides Instant Results: Get quick and accurate estimates and eliminate the need for manual calculations.

HDFC Lump Sum Calculator and HDFC SIP Calculator: What's the Difference

HDFC Lump Sum Calculator calculates the potential returns on a one-time investment, while the HDFC SIP Calculator estimates returns on regular investments made at fixed intervals. A lumpsum investment grows on the entire invested amount from the start, whereas SIP investments build wealth gradually through periodic contributions and compounding. 

SIP vs Lump Sum: Which is Better?

Between SIP and lump sum method of investing, which is better would depend on an investor’s financial situation, investment goals and risk tolerance. Investors who have a large surplus fund to invest, can time the market and are comfortable with the market fluctuation can consider lump sum investment. 

On the other hand, for those who prefer investing smaller amounts regularly and want to build wealth gradually through disciplined investing, a SIP can be a better option.

Lump sum vs SIP Returns comparison (Assuming 11% Annual Rate of Return) 

Note: The returns are illustrative and not guaranteed. Actual returns may vary based on the fund performance, market fluctuation and other influencing factors.

A Step-Up SIP (also called Top-up SIP) allows you to increase your investment amount at regular intervals, usually annually, in line with your income growth. Instead of a fixed contribution, your SIP increases over time, helping you invest more as your earning capacity rises.

Suppose you started an HDFC SIP of 10,000 per month and opted for a 10% annual step-up. So your SIP amount from 2nd year onwards would be Rs. 11,000, Rs.12,100 and so on.

This gradual increase can help you to build a larger corpus over a long-term through the power of compounding. The HDFC SIP Calculator with step-up option helps you estimate the impact of increasing contributions on your final returns.

Regular SIP vs Step-up SIP: A Quick Returns Comparison Table 

The table below illustrates the impact of a 10% yearly Step-Up SIP, showing how gradually increasing your investment amount can enhance overall returns over the same investment period: 

Note: The returns are illustrative and not guaranteed. Actual returns may vary based on the fund performance, market fluctuation and other influencing factors.

HDFC offers a variety of mutual fund schemes in equity, debt, hybrid, index, tax saver, funds of funds, solution oriented and ETF. Each fund has their unique characteristic, which may suit you based on your risk appetite and financial goals. The following list is based on the performance and ratings of these funds. So as market changes the list of Top HDFC Mutual Fund scheme may also change: 

• HDFC Mid Cap Fund - (Equity) 
• HDFC Flexi Cap Direct Plan-Growth- (Equity)
• HDFC Small Cap Fund- (Equity)
• HDFC Gold ETF Fund- (Commodities Gold)
• HDFC Balanced Advantage Fund- (Hybrid Dynamic Asset Allocation)
• ELSS Tax Saver Fund