How to Calculate Stock SIP?
One of the main reasons why mutual funds are so popular among investors is because of the availability of systematic investment plans (SIPs). It allows them to invest in their preferred schemes at regular intervals, thus building a sizable investment corpus. Additionally, it is convenient for new investors as they can start with an amount of their choice and scale up with time.
Wouldn’t it be just great if SIPs were available in stocks?
Well, now they are. What’s more, just like mutual fund return calculators, you can use a stock SIP calculator to find out the historical returns of a stock of your choice and decide whether you want to invest in it via a SIP. Keep reading to learn more!
What is a Stock SIP Calculator?
A stock SIP calculator is an online tool which can help you know the historical returns of a particular stock to get an insight into its past performance. You simply need to enter the name of your desired stock, time period of investments (in months) and number of shares you wish to buy via a SIP per month.
The calculator will display an estimate of the value of your investment, net profit, total return rate and annual return rate after analysing the historical returns of the stock.
Let’s take an example for better understanding.
Suppose, you wish to invest in Reliance Industries Ltd. for 2 years by buying 10 shares every month. Now, you want to know how much returns you can expect from your investment. What’s a better way to know the future than taking a hard look at the past?
A stock SIP calculator works in the same way. Once you enter the time period and number of shares that you want to buy per month, the calculator will assess the share price of Reliance Industries for the past two years and provide you an estimate of what you COULD have gained if you had invested two years ago.
Furthermore, the calculator will show you a graphical representation of the estimated past return on your invested amount (if you would have invested) vs. the value of your investment over your selected time period. This way, by studying the past growth performance of the stock, you can get an idea of what you can expect from your future stock SIP investment.
Furthermore, you can change the variables in the calculator, such as the time period and number of shares, to come up with an investment plan that aligns with your strategy.
Benefits of Using a Stock SIP Calculator
Using a stock SIP calculator has several benefits. They are as follows:
- Help you view the historical returns of your target stocks, enabling you to make an informed choice.
- Enables you to determine how a change in the stock quantity or time period could have affected your profitability.
- Displays your annual and total returns in the form of percentages.
- Allows you to check the historical returns of multiple stocks, enabling you to choose the ones that suit your investment objective.
- Saves a lot of time and helps you make quick decisions.
- Removes the chances of human error.
How to Use Samco’s Stock SIP Calculator?
Samco’s stock SIP calculator enables you to find the estimated past return of a stock investment - you can find how much you could have gained if you had invested in the past.
Here are the steps you need to follow to use the calculator:
- Step 1: Navigate to Samco’s stock SIP calculator page.
- Step 2: Choose your desired stock.
- Step 3: Set the time period.
- Step 4: Choose your stock quantity.
The system will display your total investment amount, the value of your investment over the selected time period, and net profits based on the number of shares you would have bought per month. It also shows your total return and annual return in the form of percentage.
Furthermore, you can discover stock SIPs on Samco’s platform and start your investment journey immediately.
Takeaway
By using a stock SIP calculator, you can determine the returns you would have generated from a particular stock by purchasing a set amount of shares across a specific time period. After getting an overview of past returns, you can decide whether a stock SIP would help your portfolio to grow or not. However, before you start any stock SIP, choosing the right stocks is also necessary
In this regard, the New-Gen Samco app is all you need. Our experts curate a basket of the most well-performing stocks, enabling you to compare among them and choose the ones which are the best for you.
Furthermore, you just have to enter the stock name, time period and stock quantity to get an idea of your overall returns. Apart from this, the app allows you to track your personal net worth and compare your performance with that of your peers.
So, download the Samco app today and make investing in equity as easy as investing in SIPs in mutual funds!
Easy & quick