| Year | Invested This Year | Interest Earned | Closing Balance |
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A Daily SIP Calculator helps you estimate the future value of your investments when you invest a fixed amount every day. Unlike a monthly SIP, here the amount is invested daily, which allows faster compounding and more flexibility.
What is Daily SIP?
Daily SIP means investing a fixed sum every day in mutual funds or other investment instruments. It works like a regular SIP but the contributions are more frequent. This can benefit investors who want smaller contributions with higher compounding.
Formula Used in Daily SIP Calculator
The formula for SIP is:
FV = P × [( (1 + r/n)^(n×t) - 1 ) / (r/n)] × (1 + r/n)
Where:
FV = Future Value of investment
P = Investment amount per period (daily amount)
r = Annual rate of return (in decimal)
n = Number of periods per year (365 for daily SIP)
t = Number of years
Example: Daily SIP Calculation
Daily Investment: ₹500
Investment Period: 10 years
Expected Annual Return: 12%
Result:
Total Invested: ₹18,25,000
Future Value: ₹32,97,000 (approx.)
Benefits of Daily SIP
1. Smaller contributions make it easy for beginners.
2. More frequent compounding than monthly SIP.
3. Builds discipline by investing every day.
4. Helps in long-term wealth creation.
Frequently Asked Questions (FAQs)
What is a Daily SIP Calculator?
It is a tool that calculates the maturity amount of your daily SIP investment based on expected returns and investment tenure.
Is Daily SIP better than Monthly SIP?
Both have their own benefits. Daily SIP gives faster compounding, but monthly SIP is more common. The difference in long-term returns is usually small.
Can I start a Daily SIP with any amount?
Yes, you can start with a small amount like ₹100 or ₹500 per day, depending on the scheme offered by your mutual fund provider.
How is Daily SIP return calculated?
The returns are calculated using compounding interest formula, assuming contributions are made daily at the given rate of return.
Is Daily SIP good for long-term investment?
Yes, daily SIP helps in building wealth gradually and is ideal for long-term goals like retirement, education, or buying a house.