SIP and Lump sum Returns Calculator in Excel [DOWNLOAD]

SIP and Lump sum Returns Calculator will help you to achieve your financial goals on time. One of the most asked questions on my YouTube Channel is – how to perform SIP and Lump sum returns calculation in any mutual fund for upcoming 5, 10, 15, 20, 25 or even 30 years using both SIP and Lump sum investments. Do we have any SIP and Lump sum Returns Calculator in Excel? YES, we have!

You can easily calculate Returns of any Mutual fund for next 30 years using the excel calculator I have provided in this article. Mutual Fund Returns excel calculator with SIP and Lump sum investment options will help you to understand the total amount you will be able to accumulate over a period of time.

It is important to note that you achieve best results in mutual fund investments when you invest for longer duration. SIP or Systematic Investment Planning will help you to get the benefit of Rupee-cost averaging, which means you will buy more mutual fund units when the market is down, thus giving you more profits. But, Lump sum investment is something where you will get more returns than SIP, considering you invest for a very long time. SIP and Lump sum Returns Calculator will help you calculate returns in both cases

Note: You can find the mutual fund returns calculator for investment up to next 30 years via SIP and Lump sum options at the bottom of this article.

Read on to get more information about how to work with Excel calculator and how mutual fund investment works.

SIP and Lump sum Returns Calculator Video In Excel

Watch more Excel Videos Here

What are Mutual Funds

Mutual Funds are Funds that help you invest in shares of multiple companies
Unlike stocks investing, mutual funds invests your money in multiple companies thus reducing the risks
This benefit of mutual funds investing in shares of multiple companies is called Diversification
Every mutual fund is assigned a Fund Manager who manages that mutual fund
Fund manager is responsible to select percentage of stocks to invest your money in, to give you better returns
Unlike stocks investing, you need not have to worry about selecting and monitoring stock performances while investing in mutual funds. Fund manager does the job for you
Below is the screenshot of the portfolio (list of stocks) of one the popular mutual funds in India

List of stocks in a mutual fund portfolio

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NAV of Mutual Fund

NAV (or Net Asset Value) is the price of single unit of mutual fund
Every mutual fund’s NAV is updated on daily basis except on weekends and public holidays in India
For example, NAV = Rs. 100, and you invest Rs. 10,000 then you get 100 units (Rs. 10,000 / Rs. 100) of this mutual fund in your folio (mutual fund account)
In this way, your investment value divided by the NAV value will determine the units that will be allocated to you
NAV of a mutual fund is something you should NOT consider while choosing a mutual fund. It doesn’t matter if NAV is Rs. 10 or Rs. 1000
List of stocks present in mutual fund will determine the fund’s future growth
If the companies in fund’s portfolio grows with positive returns, NAV increases with time, else NAV decreases with time. Ideally, the NAV fluctuates over time and over longer run (over 5-7 years), mutual funds are believed to give good returns

ALSO READ: Compounding in Stock Market with Examples

What is Expense Ratio

Expense ratio is a small percentage taken by AMC (Asset Management Company) to manage your funds. You need not have to pay additionally as a part of Expense Ratio.

Expense Ratio amount is recovered from your profits that you make. Usually, expense ratio of regular mutual funds are high compared to those of direct mutual funds. You can get details of expense ratio of every fund on the mutual fund page.

How to Invest in Mutual Funds

There are 2 ways you can invest in Mutual Funds:

SIP – Systematic Investment Plan:
SIP allows you to invest a predefined amount every month in a mutual fund. Based on the NAV of mutual fund, Units are allotted to your account. You sell off these units when you want to redeem these units in order to book profits in mutual fund
Lump sum Investment:
In this, you invest a lump sum amount just once. You are allotted number of units based on your Investment amount and the NAV value on the day of Investment. As the NAV of mutual fund grows with time, your investment value also increases. You can redeem your mutual fund units on latest NAV when you want to book profits.

ALSO READ: Invest in SBI Mutual Fund Online

What is SIP and How SIP works

SIP full form is Systematic Investment Plan. This means you systematically invest specific amount in a disciplined manner every month based on your goals
The SIP amount you invest is used to buy Mutual Funds units every month
NAV (Net Asset Value) is the price of the single unit of a mutual fund
Units Calculation formula is – Units = Investment Amount / NAV
If NAV = Rs. 100 (price of single unit of a mutual fund), and you invest Rs. 5000, you get 50 Units (Rs. 5000 / Rs. 100) of this mutual fund for this investment
This way you invest every month and every SIP is considered as fresh Investment. Based on the NAV of the mutual fund, specific number of units gets added to your account

SIP vs Lump sum Investment

As mentioned above, SIP is investing in a systematic manner every month, on the other hand Lump sum investing is investing your entire amount in one go instead of investing systematically every month.

Example

Let’s say you have Rs. 1,20,000 to be invested in a mutual fund
In SIP, you will divide this amount to be invested over a year so your SIP amount every month will be Rs. 10,000, of Rs. 5000 to be invested over the period of 2 years
In Lump sum investing, you will invest entire Rs. 1,20,000 in one go, without dividing it into multiple months investment
The calculation of number of units allocated to you remains same as mentioned above
But while investing in lump sum, there might be a risk you are taking since you cannot predict market. If market crashes next month after your lump sum investing, your investment value might be negative
But you might also be rewarded if market goes up after you investment since more units are allocated to you at reduced NAV value of mutual fund

SIP Benefits & Advantages

Allows you to invest only a fraction of amount instead of entire corpus in one go. You can choose this fraction of amount as SIP based on your affordability
Rupee Cost Averaging. You buy more units when market goes down, since NAV is less (more on this below). This increases your returns when market comes back to normal
You can have multiple SIPs based on your goals whether they are short term, medium term or long term goals
SIPs are flexible these days. You can choose to pause a SIP for few weeks or months, or stop SIP if your goal is achieved before time
You become disciplined in working towards goals with given timelines

ALSO READ: Rs. 1000 SIP Returns Calculation Examples

SIP Returns Calculator EXCEL

You can easily calculate SIP returns using excel document (link at the bottom of post).

This excel will help you know your future SIP returns with just 2 inputs – SIP Amount & Expected Returns

Here are the screenshots of some SIP returns:

SIP Amount = Rs. 5000, Expected Returns = 10%:

SIP Excel Calculator by FinCalC — SIP Excel Calculator with 10% returns

SIP Amount = Rs. 5000, Expected Returns = 12%:

SIP Amount = Rs. 10000, Expected Returns = 10%:

SIP Amount = Rs. 10000, Expected Returns = 12%:

Types of Mutual Funds

There are 3 types of mutual funds: Equity, Debt and Hybrid mutual funds
Equity mutual fund: Mutual funds that invest in equities – shares of companies. These mutual funds high risk but also gives you high returns
Debt mutual fund: Mutual funds that invest in bonds or instruments. They have low risk and low returns
Hybrid mutual fund: Mutual funds that invest in a combination of Equity and Debt instruments. They have medium risk and medium returns
Based on your risk appetite and your goals, you can choose between above categories of mutual funds

SIP in Mutual Fund to Save Income Tax

You can invest in one type of mutual fund called ELSS (Equity Linked Saving Scheme) that helps is saving Income Tax under Section 80C
Maximum deduction allowed under Section 80C is Rs. 1.5 Lacs (as of FY 2021-22)
ELSS has a lock-in period of 3 years
You can invest via SIP in ELSS to achieve your goals and save income tax at the same time

How to Save Income Tax Video

Watch more Excel Videos Here

Mutual Fund Withdrawal

After your SIP investments are complete and you no longer need or want to invest via SIP, you can either choose to stop SIP and redeem (withdraw) all your Units or keep them invested to grow more
When you redeem the units, it depends whether to sell all the units or partially you can select the number of units to be sold
Latest NAV of mutual fund will be considered while you sell mutual fund units which we saw in the video at the start of this post
Total Investment Value = Total Number of Units * Current NAV

Mutual Fund – Things to Remember before investing

While you are searching for a good mutual fund, you should see how the fund has performed in past
You should also see the expense ratio of the fund and how much money is invested in the fund which is called AUM (Asset under management). Lower the expense ratio of the fund, more returns you’ll receive
You should only invest in Direct mutual funds for better returns which also have low expense ratio compared to their regular fund counterpart
Remember to link your mutual funds investments with goals. And once your goal is achieved, you can stop investing and reap the benefits
Never book losses in mutual funds. If the market is down, wait for the market to come up so that you are in profit
It is always better to divide your money and invest via SIP (Systematic Investment Planning) compared to investing as lump sum. Never try to time the market to get best returns.
If someone says they can maximize your returns and ask you to lend them your money, just run away and never look back

DOWNLOAD SIP and Lump sum Returns Calculator

Please fill below details to download lumpsum + sip calculator excel:

Conclusion

You can easily use the SIP + Lump sum calculator in excel to calculate your returns over next 30 years. This will help; you in planning and achieving your goals before time.

It is important to note that you should not try to time the market. Nobody can predict the next bottom in the market so continue with SIP investments and whenever possible, make lump sum investing to get better returns from market.

Some more Reading

Frequently Asked Questions (FAQs)

What is the Full Form of SIP?

SIP full form if Systematic Investment Plan. Usually SIP is a specific amount you invest every month to achieve specific goals with specific tenure (time period)

How SIP works?

SIP is the specific amount you invest every month for a specific goal with a specific period of time. You invest an amount of let’s say Rs. 5000 every month for 5 years and with expected returns of 10% per year. In this case, after 5 years your expected investment value would be Rs. 3,90,411 according to the SIP returns excel calculator provided above. This makes you a profit of Rs. 90,411 in 5 years and also helps you achieve your goal.

What is lump sum investing?

Lump sum investing means you invest entire amount in one go. Let’s say you have Rs. 1,20,000 to be invested for a year. In SIP, you divide this Rs. 1,20,000 for 12 months (1 year) and invest Rs. 10,000 every year in a mutual fund. On other hand, in lump sum investing, you invest entire amount of Rs. 1,20,000 in first month in one go. This is called lump sum investing.

What is better SIP or Lump sum investing?

Combination of both SIP and Lump sum is better. You can continue with your SIP during normal days and invest lump sum amount if available when market goes down. This way you get more units when market is down and make more profits during market crash.

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Income Tax Calculator App – FinCalC

For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.

What you can do with this mobile App?

Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
Enter estimated Investments to check income tax with Old and New Tax Regime
Save income tax details and track regularly
Know how much to invest more to save income tax
More calculators including PPF, SIP returns, Savings account interest and lot more

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