How to Plan Your SBI Mutual Fund Investments by using this handy SBI Mutual Fund Calculator

Mutual funds can be defined as a trust that pools or collects money from various investors and the money is invested in securities like short term debts, stocks, and bonds. The SBI Mutual Fund, headquartered in Mumbai is a bank-sponsored funding house that offers a Systematic Investment Plan (SIP) which allows investors to invest fixed amounts in their mutual funds in a step by step manner either quarterly or monthly thereby guaranteeing a successful approach towards the goals and objectives.

The SBI mutual fund calculator offered by SBI is a very lucrative service available to the investors which enables them to check their monthly investment amounts as well as calculate or change other investment policies by using the variables offered by this online calculator.

Types of mutual funds offered by SBI are:

Equity mutual funds

This mutual fund provides offers that help in investments in small-cap, large-cap and even mid-cap stocks. A few of the SBI Equity mutual funds offered by the company include SBI Banking and Financial Services Fund, SBI Focused Equity Fund, SBI Blue-chip Fund, SBI Infrastructure Fund, and SBI Magnum Multi-cap Fund.

SBI Debt Mutual Funds

This mutual fund allows investors to primarily invest in various debts and securities if fixed incomes. Corporate bonds, treasury bills and government securities are included in the fixed income accounts. These fixed securities have a fixed interest rate and maturity date. Some of the debt mutual fund schemes offered by SBI include SBI Credit Risk Fund, SBI Dynamic Bond Fund, SBI Magnum Income Fund, and SBI Magnum Low Duration Fund.

SBI Hybrid Mutual Funds

Hybrid funds allow investors to invest in a mix of equity securities and debt in various proportions based on the objectives of the investment. These funds offer a lower rate of interest as a result of which they are considered less risky compared to others with a higher interest rate. The hybrid mutual funds offered by SBI include SBI Debt Hybrid Fund, SBI Equity Savings Fund, SBI Equity Hybrid Fund, SBI Dynamic Asset Allocation Fund, and SBI Magnum Children’s Benefit Fund.

Here is a list of the top fund managers for SBI mutual funds:

• R Srinivasan
• Sohini Andani
• Richard D’Souza
• Dinesh Balachandran
• Anup Upadhyay

Documents required for investing in SBI mutual funds:

• An identity proof which includes Aadhar Card, PAN Card, Passport and Driving license
• An address proof which includes Aadhar card, Passport, Driving License, Recent Utility Bill and Rental/Lease Agreement

The SBI mutual fund calculator helps to provide the investment value to the investors by calculating the fund returns based on the investment horizons. The variables of this calculator such as the SIP frequency, investment amount, SIP duration and expected return rates can be adjusted by the investors.

Here are a few benefits of using the SBI mutual fund calculator:

• Investors can determine the estimated amount of investments every month based on the desired objectives and goals
• The SBI mutual fund calculator helps in calculating the approximate time period required for the investments to reach the desired goals
• This mutual fund calculator helps investors to ascertain investment targets based on variables like duration and assumed return rates
• These calculators can be used online and are provide services free of any charges
• It has a very user-friendly interface as no additional details are required except details about the monthly investments and return rates of the investors
• First-time investors can easily know about the minutest details of SIP investments through this calculator

How does the SBI mutual fund calculator work?

Using this calculator, investors can calculate the exact amount of money invested for a fixed time period. The steps of using this calculator include:

• Details regarding the monthly amount invested in the SIP must be provided by the investor. The minimum amount necessary to invest in a mutual fund is Rs. 500 per month. In the case of other investments, Rs. 1000 is the minimum amount required to invest in mutual funds
• The estimated returns of a particular investment are calculated based on its return rates. In order to derive this possible return rate, a figure based analysis of the fund’s track records is required
• The final step of this process requires an investor to provide all the details of the investment tenure. Six months is the minimum period of investment in SIP, however, investors are recommended to invest for long periods in order to gain maximum returns

You can also read: Choosing between mutual and individual Stocks

The SBI mutual fund calculator is provided by every fund house and is easily available online. Investors simply need to log into their desired website for investment and search for the calculator online on the website. Various options regarding the monthly investment amount can also be explored by the investors by changing the calculator variables. However, users must also note that the calculator calculates the output only after considering the gains tax and the estimated inflation rate.

Related content: Investing quick start guide