How to use financial planning calculator in India?
The key element to any successful element is planning. Proper planning will tell you where to invest and how much to invest to reach the goal you have.
Financial planning for investments could have many parts. It begins with finding your goals and petite and then moves to gauge your income and investment capabilities to find an instrument that works the best for you.
Many processes mentioned above have math involved. And math tends to be complex for even someone who likes to calculate. Hence, it is wise to take the help of financial planning calculators. There are many financial planning calculators available online. Let us explore some of them through this article.
Systematic investment plan calculator
SIPs are one of the key elements for corpus building. It allows you to invest in a mutual fund as monthly instalments. These monthly, regular instalments can slowly yet steadily grow your corpus.
One of the key tools that you can use while planning your SIP investment is a SIP calculator. The calculator will help you find the desired SIP amount or tenure according to other preferences you have. For instance, if you have a set goal amount, a fund, and a SIP amount fixed, the calculator will help you find the tenure of your investment. Like this, you can figure out any other attribute by inputting the rest three.
Top-up SIP calculator
This tool is also used in the case of SIPs. This is used to see how much a SIP top-up can boost your returns. Top-ups are usually done over and above the regular SIP investments.
Return value calculator
There are two ways you can invest in a mutual fund according to your goal. If your goal is to create a corpus in the longer term, you can use the above SIP method. But if you already have a corpus and want to appreciate the capital, you invest the lump sum amount in a mutual fund. When you do that, a return value calculator helps you gauge the estimated returns your refund could give. You could then see if this value is in line with your goals. For instance, if you invest Rs.1 lakh in a fund with 12% returns, with a return value calculator, you can understand that you will get Rs.12,000 returns for the first year. You can then measure if the returns are in match with your goals.
Systematic withdrawal plan calculator
An SWP is an investment plan where you invest a lump sum amount of money in a fund to generate regular income. Using an SWP calculator, you can measure the income that you can generate periodically. For instance, let us suppose you have a retirement fund and you want regular income from it post-retirement to achieve your financial planning. You could invest the same in a fund and use an SWP calculator to see if the fund can generate returns that are enough for you.
There are occasions when you may have to take on debt. This may be because you want to fulfil something personal that requires an amount of money that you can’t immediately afford from your pocket or to buy something expense in monthly instalments. On both occasions, you need to understand the EMI you pay. This will help you see if you can afford the same. An EMI calculator will help you here. You can input the loan amount and the interest rate in the tool, and it will show you the EMI amount that you have to pay for the tenure that you choose.
Financial planning is imperative for being successful in an investment. You can use the tools above to ensure you make the best out of your investments.