Systematic Investment Plans or SIPs allow investors to make recurring payments in a Mutual Fund plan in predefined amounts. This is often the more preferred option than a single lump-sum payment.
For example, an investment could be about ₹7500 each month or quarter into the same Mutual Fund plan. In some instances, the monthly instalment payment might be as low as ₹500, the equivalent of a one-time investment. It is easy to set up standing instructions at your bank for monthly deductions.
Investing in mutual funds via systematic investment programmes is unquestionably the most effective approach to get started in the realm of long-term investing.
Because they enable methodical investment without worrying about market volatility or timing, SIPs have gained favour among Indian mutual fund investors. It is critical to plan for the long term, which means beginning as early as possible to maximise your overall returns.
As a result, your motto should be "Start Early, Invest Regularly" to maximise your return on investment.
What is a BOI SIP Calculator?
An online financial tool, the BOI SIP Calculator, is provided by India. It enables investors to determine the proper amount of money to invest in building the financial corpus they want in the future.
Using the BOI SIP Calculator is a simple and hassle-free process that allows you to rapidly get the correct answers for any sophisticated financial calculation.
The BOI SIP Calculator anticipates returns based on the present market condition, even in unpredictable financial markets. The estimated and actual results may differ.
How does the BOI SIP Calculator work?
The BOI SIP Calculator provided by the Bank of India is quite simple to use and only needs a few pieces of basic information about the SIP plan to function. The following is the method to determine the returns on your Bank of India (BOI) SIP:
The slider should be moved to the right to choose the suitable amount of monthly investment.
You may choose the desired annual rate of return by dragging the slider to the right.
Decide on the length of time you want to put money into your BOI SIP.
Click on the 'Invest Now' button.
Each of the following figures will be shown on your screen: the Total Amount Invested, the Total Interest Earned, and the Maturity Amount.
The BOI SIP calculator is a precious tool for a variety of reasons.
This is an excellent tool for first-time investors.
It just needs a few pieces of information to get started in investing.
Compared to hand calculations, calculators deliver more accurate and faster results.
The application is straightforward, with precise, comprehensible functionality.
This service assists in determining the proper amount of money to invest to achieve their long-term objectives.
Why should you invest in SIP?
SIPs are a kind of mutual fund investment in which an investor may invest a fixed amount at predefined intervals and get a high rate of return after the period in which the investment has been made. Some of the most compelling reasons to invest in a SIP are listed below.
SIPs contribute to the expansion of a financial portfolio.
It assists in establishing a savings habit, incorporating discipline into a person's life in the process.
It can act as a vehicle for both investment and savings.
SIPs may be started with a deposit of as low as ₹ 500.
During economic downturns, it helps to alleviate financial pressures.
After completing the Know Your Customer (KYC) protocol, investors may engage in SIPs via any recognised investing website.
How is BOI SIP return calculated?
The formula is used for calculating BOI SIP return:
FV = P x ({[ 1+ i] ^ n -1} / i) x (1+i)
Here is the elaboration:
FV = Future Value (The amount to be received after maturity)
P = Amount that the investor invests
i = The rate of interest periodically, that is, annual return rate percentage / 12
n = Total number of months
Let's say Ms XYZ contributes Rs. 1,000 per month in her BOI SIP plan for one year at a rate of twelve percent interest, with a monthly investment of Rs. 1,000. Her expected maturity return value in the future will be as follows:
Future Value = 1,000 ({[1 + 0.01] ^ {12 – 1} / 0.01) x (1 + 0.01)
Future Value = Rs. 12,809 yearly (approximately)
Best BOI Mutual Fund SIPs
Equity funds may be appropriate for investors with a long-term outlook and a high tolerance for risk. A typical investor seeking a stable source of income may invest in a debt fund. Because hybrid funds invest in both debt and equities, they offer investors the best of both worlds.
The following are the most popular BIO AXA mutual fund strategies. These funds were picked based on a range of factors, including their net asset value (NAV), assets under management (AUM), historical performance, and peer average returns.
BOI AXA Conservative Hybrid Fund
BOI AXA Ultra Short Duration Vehicle was formed as a debt - ultrashort Bond fund. The scheme, ranked 9 in the Ultrashort Bonds category, seeks to generate fair market-related returns with decreased risk and increased liquidity via a portfolio of debt and money market instruments.
It is a fund with a moderately low-risk profile that has earned a yearly compound growth rate/return of 7.3 percent since inception. Returns on investment in this fund were 3.2 percent in 2021, 4.9 percent in 2020, and 7.5 percent in 2019.
BOI AXA Ultra Short Duration Fund
BOI AXA Ultra Short Duration Vehicle was formed as a debt - ultrashort Bond fund. The scheme, ranked 9 in the Ultrashort Bonds category, seeks to generate fair market-related returns with decreased risk and increased liquidity via a portfolio of debt and money market instruments.
It is a fund with a moderately low-risk profile that has earned a yearly compound growth rate/return of 7.3 percent since inception. Returns on investment in this fund were 3.2 percent in 2021, 4.9 percent in 2020, and 7.5 percent in 2019.
BOI AXA Tax Advantage Fund
BOI AXA Tax Advantage Vehicle is an equity - ELSS fund with a moderately high-risk profile that has earned a 19.4 percent compound annual growth rate/annualised return since inception.
The scheme seeks long-term capital growth by investing mainly in stocks and equity-related assets across all market capitalisations. It is organised as a mutual fund that invests in various companies.
It is at the 13th position in the ELSS classification. Returns on investment were 41.5 percent in 2021, 31.2 percent in 2020, and 14.6 percent in 2019.
BOI AXA Large and Mid Cap Equity Fund
The scheme seeks to generate income and long-term capital appreciation principally via investments in large and mid-cap shares and equity-related products, such as equity derivatives. It is organised like that of a large- and mid-cap fund.
The scheme makes no such promises or guarantees about returns. It is a moderately risky investment that has earned a compound annual growth rate/annualised return of 13.9 percent since inception. In the Large & Mid Cap category, the fund is ranked 33rd.
Returns on investment were 33.8 percent in 2021, 17.5 percent in 2020, and 8.5 percent in 2019.
BOI AXA Liquid Fund
BOI AXA Liquid Product was created as a debt - liquid Fund. The scheme seeks to generate fair market-related returns with decreased risk and increased liquidity via a portfolio of debt and money market instruments.
BOI AXA Liquid Product was created as a debt - liquid Fund. It is a low-risk portfolio that has returned 6.7 percent CAGR/annualised since inception. It is currently rated 34th in the category of Liquid Funds. Returns on investment were 3.3 percent in 2021, 4.1 percent in 2020, and 6.4 percent in 2019.
Note: Like with all literature, please read the offer document with great care. Because of the nature of the markets, SIPs do not make assurances of investment objectives, so do your research before investing.
Frequently Asked Question
Q1. Which SIP is best in BOI?
The BOI AXA Conservative Hybrid Fund is a good choice. It aspires to provide steady income through fixed-income investments and long-term capital appreciation by allocating a part of its assets to equities and equity-related instruments.
Please read the related documents carefully before choosing your SIP.
Q2. How can I open a SIP in BOI?
- Step 1: Enter the desired monthly investment amount or use the slider to pick the amount.
- Step 2: Next, input or change the return rate slider.
- Step 3: Determine the duration of the investment.
- Step 4: Select 'Invest now' from the drop-down menu for the best choice.
Q3. What is the BOI SIP interest rate?
Depending upon the SIP you chose, the period you invested for, and the market's overall volatility, it can range from 3.2 to 41.5 percent.
Q4. Can I pause/withdraw my SIP in BOI?
To pause or withdraw your SIP, you must inform your fund house, in this instance, the Bank of India, in advance. Complete a SIP termination form or send a letter to terminate your SIPs.
On the other hand, if you have insufficient funds in your bank account and your SIP continues to be active, the fund business may simply terminate your investment after 3-5 months of default.
Depending on your mutual fund institution's requirements, you may stop payments for up to about six instalments or five months' worth of monthly instalments. Establish a schedule for pausing your SIPs.
Q5. Can I lose money in SIP?
Yes, investing in a mutual fund has a chance of losing money. Mutual funds are regarded as market instruments. They invest in various assets, including stocks, bonds, and commodities. All of these goods as well as mutual funds have the potential to depreciate.