~/tools/sip-calculator $ run sip-compound-forecast --mode=SIP
SIP & Compound Interest Calculator
Forecast wealth growth from Systematic Investment Plans (SIP) and single lump-sum compound interest returns in Nepal.
// Compounding Power in Nepal
Open-ended mutual funds in Nepal (e.g., NIBL Sahabhagita, NIBL Samriddhi) offer monthly SIP plans starting from Rs 1,000 per month.
Divide 72 by your annual interest rate to estimate years required to double your capital. At 12% annual return, money doubles in ~6 years.
// Frequently Asked Questions (SIP & Compounding)
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is an investment method where fixed sums are invested regularly (usually monthly) into a mutual fund or equity basket, benefiting from rupee cost averaging and compound growth over time.
How does compounding work in SIP calculations?
In SIP, each monthly installment earns compound interest for its remaining tenure. Our calculator uses monthly compounding to accurately calculate the future wealth value.
What is the difference between SIP and Lump Sum investment?
In SIP, investments are split into regular monthly payments reducing market timing risk. In Lump Sum mode, the entire capital is invested upfront on day one.