Beginner's Guide: Calculate SIP Returns!

Decode your mutual fund statements like a pro! Learn to truly understand your SIP's performance and make smarter investment decisions for your financial future.

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Why Calculate Your SIP Returns?

Don't just hope for the best! Knowing your actual SIP returns empowers you to gauge performance, make informed decisions, and stay motivated on your financial journey. Take control!

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Absolute Return: The Quick Look

Easy to calculate: [(Current Value - Invested) / Invested] * 100. It's a quick snapshot, but misleading for SIPs as it ignores the time value of money. Not enough for SIPs!

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CAGR: Good, But Not For SIPs

Compounded Annual Growth Rate is perfect for lump sum investments, showing average annual growth. But for SIPs, with multiple 'beginning' values, it falls short. You need more precision!

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XIRR: Your SIP's Best Friend!

Extended Internal Rate of Return is the most accurate for SIPs. It accounts for exact dates, amounts, and current value. Use Excel/Google Sheets for precise annualised returns!

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SIP Returns: Avoid These Pitfalls

Don't compare apples to oranges, obsess over short-term volatility, or ignore inflation. Review periodically, and understand expense ratios. Stay focused on your long-term goals!

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Take Control: Plan Your SIP!

Ready to put your knowledge into action? Explore advanced SIP calculators at sipplancalculator.in. Plan your investments with purpose and watch your wealth grow! #SIP #MutualFunds #InvestSmart

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