Frequently Asked Questions

What is the SIP Calculator tool?

The SIP Calculator on Nova Tools helps you estimate the future value of your Systematic Investment Plan (SIP) for FY 2025-26. It calculates returns based on your investment amount, frequency, expected annual return rate, and tenure.

What is the difference between monthly and yearly investment frequency?

Monthly frequency calculates returns for investments made every month, using a monthly compound interest formula. Yearly frequency calculates returns for investments made annually, using an annual compound interest formula. Choose the frequency that matches your investment plan.

How do I choose the expected annual return rate?

The expected annual return rate depends on the mutual fund or investment type. Historical returns for equity funds typically range from 10-15%, while debt funds may range from 6-8%. Consult your financial advisor or fund documentation for an appropriate rate.

How accurate is the SIP calculation?

The tool provides an estimate based on the compound interest formula and your inputs. Actual returns may vary due to market fluctuations, fees, or taxes. For precise financial planning, consult a financial advisor. Contact our support team via the Contact Us page for assistance.