![]() 60, in that case, you are able to purchase only 8.33 units of the scheme.Īlternately, if the NAV declines to Rs. The next time your SIP payment occurs, assume that the scheme NAV has increased to Rs. 50 and thus you purchase 10 units of the scheme. And the first time you invest through the systematic plan, the NAV of your chosen SBI MF scheme is Rs. It is important to note here that though your individual investment amount will remain unchanged, you do have to keep in mind that the NAV of the fund that you have chosen will vary daily thus, the number of units purchased will tend to vary from one SIP installment to another. This predetermined amount then gets invested in a SBI mutual fund scheme of your choice. When you set up a SBI SIP, the monthly, weekly or daily investment capital specified by you gets debited from your registered bank account automatically on a specific date. The concept of SIP is pretty similar to the bank recurring deposit for the most part. ![]() Thus, even small amounts invested in mutual fund schemes through an SBI SIP can provide you significantly high returns due to the power of compounding.įor this reason, the SIP calculator – a vital tool used to calculate future value of your fund investment – uses the compounding system to provide you with approximate returns.Īlso Read : Calculate the Future Value of Your Investment using SIP Calculator How Does SBI Mutual Fund SIP Work? Long term Benefit of Compounding: Though not a fixed rate instrument, mutual fund investments are subject to the general rule – the earlier you invest, the more your wealth grows over time. If you like your fund and want to increase your SIP contribution to it, you can do that without starting a new SIP by simply increasing the amount of the existent SIP. Moreover, you can also change the tenure at a later date after the SIP has been started without a hitch.įlexible Investment Amount: You can increase or decrease the SIP amount as per the income and savings capability. ![]() Flexible Investment Tenure: Flexible investment tenure facility allows you to start and stop a SIP as per your need.
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