Bank of India SIP Calculator
The mutual fund adoption rate in the country is on the rise. According to the Association of Mutual Funds in India (AMFI), India’s average asset under management stood at Rs. 40.49 trillion in November 2022. Systematic Investment Plans, or SIPs, are among the most common investing methods, especially among the youth. Naturally, determining the SIP return is an essential step before investing. Investors can use SIP calculators to determine their returns available online. If you choose to invest in the Bank of India Mutual Fund, the Bank of India SIP calculator can help you assess your potential returns.
|Year||Invested Amount||Wealth Gained||Expected Amount|
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What is a Bank of India SIP Calculator?
Bank of India Investment Managers Private Limited, formerly the BOI Star Investment Managers Private Limited, is a wholly-owned subsidiary of Bank of India. They offer different types of investment solutions across diverse asset classes.
You can calculate your potential investment returns with the Bank of India SIP Calculator. Typically, the SIP calculator uses the inputs like the investment amount or target amount, the expected Bank of India SIP interest rate, the investment tenure, and the step-up rate. It provides clarity on the investment amount, potential capital gains, and potential maturity amount.
The Bank of India SIP Calculator employs an investment amount-based methodology. In input fields, you must enter your investment amount, tenure, interest rate, and step-up percentage. It is noteworthy that the Bank of India SIP Calculator does not guarantee any return as the fund performance is subject to market fluctuations. Based on how the fund performs, returns can differ.
How does the Bank of India Mutual Fund Calculator work?
The Bank of India SIP calculator is an effortless tool that estimates the Bank of India mutual fund performance based on the scheme's historical performance. However, investors need to know that the calculations can help you forecast your investment performance and do not guarantee such returns. Additionally, mutual funds are market-linked. Thus, there might be a difference between the performance of the fund and the final value of an investment.
Any tool that calculates investment value at maturity assumes a return percentage. Generally, users need to enter this return value into the online SIP calculators. However, the Bank of India SIP calculator determines this value based on the scheme's historical performance.
When using the calculator, you can select one of the numerous Bank of India mutual fund schemes to invest in from a drop-down list. Upon choosing a plan, the tool shows the historical Extended Internal Rate of Return (XIRR) for that specific investment. The calculator then determines the maturity value using your SIP amount and investment period.
How is the Bank of India Mutual Fund Calculator?
SIPs are preferable for risk-averse investors. These are more strategic investment plans than lump-sum investments. SIPs let you contribute a small amount each month to a mutual fund scheme instead of a massive chunk of your corpus all at once.
Using a Bank of India Mutual Fund SIP calculator has several benefits, including the following.
- ROI Estimation: SIP return calculator from the Bank of India provides you with a fair degree of accuracy. Due to market risks, the final result may differ slightly from the anticipated.
- More straightforward calculations: Technological advancements allow you to overcome the tedious process of calculating SIP returns. The Bank of India SIP calculator is easy to use with only a few inputs. A SIP calculator is helpful for experts in the field (as it saves time for them) and an amateur (due to its simplicity).
- Systematic planning: As the name suggests, SIPs are a prudent investment plan, and you can evaluate the results with the help of the Bank of India SIP calculator.
Formula to Calculate Bank of India SIP Returns
the Bank of India SIP calculator uses the typical SIP variables to calculate the ROI (Return On Investment). The formula goes like this-
FV = [P x R x (1 + i) n-1/i] x (1 + i)
FV= Future Value
R= Expected Rate of Returns
i= Compound rate of return
n= Number of instalments
This calculation may take some time for you to calculate manually. But you can efficiently complete the task using the Bank of India SIP investment calculator.
For example, let's say you invest Rs. 500 per month through a SIP plan for a 3-year tenure and expect 12% p.a. returns. The estimated return value will be given to you right away by the calculator.
Amount invested: Rs. 18,000
Expected return amount: Rs. 21,754
Wealth gain: Rs. 3,754
How to use the Bank of India SIP Calculator?
As mentioned above, a SIP calculator requires some inputs to calculate the SIP returns. The Bank of India SIP Calculator uses the following information.
- Monthly investment amount
- Your fund name or expected growth rate
- Investment duration
- Step up percentage (optional)
The calculator estimates the scheme's historical returns based on the inputs above. Use the calculator to your advantage by following these simple steps:
Step 1: Enter your monthly investment amount
Step 2: Choose a fund, such as the Bank of India Liquid Fund Regular Growth Fund, as your first investment.
Step 3: Determine the investment duration.
Finally, the calculator provides an investment period value based on the scheme's past earnings, SIP amount, and investment period.
What are the Benefits of the Bank of India SIP Calculator?
The Bank of India SIP calculator estimates the performance of any Bank of India mutual fund using the scheme's historical performance. The tool helps you choose better investments by showing where the fund stands within its category. Here are some key benefits of the Bank of India SIP calculator.
- It is an easy-to-use and effective tool for estimating the SIP returns of Bank of India mutual fund schemes.
- The calculator also eliminates the tedious computation of the maturity value manually.
- Therefore, any investor can check the scheme's potential returns at their finger-tips
Other SIP Calculators
Some top-rated Bank of India Mutual Fund w.r.t. 3-year returns are:
- Bank of India Small Cap Fund
- Bank of India Manufacturing & Infrastructure
- Bank of India Mid & Small Cap Equity & Debt Fund
- Bank of India Tax Advantage Fund
- Bank of India Credit Risk Fund
SIPs are subject to market risk. Depending on your chosen fund, investing in the Bank of India SIP can provide a capital appreciation on your investments. Many of the Bank of India's equity programs have a CRISIL rating of 3 or higher, making them relatively more credible.
SIPs are a tremendous habit-building investment method. Bank of India SIP allows you to invest a fixed sum every month, where your investments compound over time. Moreover, the Bank of India holds three or higher CRISIL ratings.
Firstly, you need to choose a mutual fund scheme, and then you can fill out the application form. Submit the form at the nearest branch, along with the required documents.