SIP Calculator in Nepal

SIP Calculator in Nepal

A SIP calculator is a tool that helps investors calculate the future value of their Systematic Investment Plan (SIP) investments based on their expected rate of return, investment amount, and investment duration.

When a user inputs these three values, the calculator uses the mathematical formula for compound interest to calculate the future value of the investment. This future value represents the total amount of money the user will have accumulated by the end of their SIP investment period, assuming the expected rate of return is realized.

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SIP calculators can also display other useful information, such as the total amount invested, the difference between the future value and the invested amount, and the net gain from SIP in percentage. This allows investors to evaluate their investment options and make informed decisions. SIP calculators are widely used in Nepal, India, and other countries. This is because it's easy and convenient to use and gives investors a way to estimate the returns on their SIP investments before investing.

SIP Calculator in Nepal

Amount invested at the start of every payment interval:
Expected frequency of payments in Months:
Expected rate of return of SIP (% per annum):

Total amount Expected (Future Value) from SIP: Rs.
Total Amount Invested: Rs.
Difference between Future Value and Invested Amount: Rs.
Net Gain from SIP in Percentage (%):

What is SIP?

SIP is an abbreviation for Systematic Investment Plan. It is a method of investing a set amount in a mutual fund at regular intervals (such as monthly). SIP allows investors to purchase mutual fund units regularly rather than in one lump sum. This method will enable investors to start investing with a small amount and average out the cost of units.

SIPs are a flexible and convenient way for investors to save and regularly invest without worrying about market timing. It allows investors to invest a set amount at regular intervals and reap the benefits of compounding over time. Furthermore, it provides investors with an easy and disciplined way to support and assists them in avoiding market volatility. SIPs are a popular investment option in India, Nepal, and other countries because they allow investors to start small and invest regularly.

How can users in Nepal calculate SIP using the above SIP Calculator Tool?

Users can use the above SIP Calculator tool in Nepal by inputting three values into the form:

1. Amount invested at the start of every payment interval: This is the amount that the user wants to invest at the beginning of every payment interval (for example, Rs. 500 per month).
2. Expected frequency of payments in months: This is the number of months the user wants to make payments (for example, 12 months for a 1-year investment).
3. Expected rate of return of SIP (% per annum): This is the expected annual rate of return for the SIP investment (for example, 8% per annum).

Once the user inputs these values and clicks the "Calculate SIP" button, the script uses these inputs to calculate the future value (total amount expected from SIP), the total amount invested, the difference between the future value and the invested amount, and the net gain from SIP in percentage. It also displays a pie chart, which shows the breakdown of the total amount invested and the difference between the future value and the invested amount.

The results are displayed in the form below the button, which shows the future value, the total amount invested, the difference between the future value and the invested amount, and the net gain from SIP as a percentage.

Why should we do SIP in Nepal?

There are several reasons why an individual may choose to do SIP in Nepal:

1. Affordability: SIP allows individuals to start investing with a small amount of money, which is affordable for many people. This makes it an excellent option for those who want to start investing but do not have much money to invest.
2. Convenience: SIPs are a convenient way to invest as they allow individuals to make regular investments at fixed intervals, such as monthly, without worrying about timing the market.
3. Discipline: SIP can help individuals to save and regularly invest, which can be a great way to develop a disciplined investment habit.
4. Volatility: SIP helps individuals avoid market volatility as it allows them to invest a fixed amount at regular intervals, regardless of market conditions. This can benefit Nepal as the stock market is relatively less mature and volatile.
5. Tax Benefits: SIP investments in Nepal may also have tax benefits, which can help increase investment returns over time.
6. Diversification: SIP allows individuals to diversify their investment portfolio by investing in various mutual funds, which can help reduce the risk of investing in just one stock or sector.

SIP can be an excellent way for individuals to save and invest for their long-term financial goals, such as retirement or children's education. It's essential to consult a financial advisor before making any investment decisions.

Best SIPs in Nepal

SIP (Systematic Investment Plan) is a popular way of investing in Nepal. It allows individuals to start investing with a small amount of money and make regular investments at fixed intervals. As of now, there are four open-ended mutual funds for SIP in Nepal: NIBL Sahabhagita Fund (NIBLSF), NIC Asia Dynamic Debt Fund (NICDDF), Siddhartha Systematic Investment Scheme (SSIS), and NMB Sarak Bachat Fund- E (NMBSBFE), we will find out the best SIP in Nepal to invest.

Out of these four funds, NIBL Sahabhagita Fund (NIBLSF) is one of the best SIP in Nepal as an option for investors. This fund is managed by Nepal Investment Bank Limited (NIBL), and it aims to generate long-term capital growth by investing in a diversified portfolio of equity and equity-related securities. The fund has a good track record of performance, with a consistent return of more than 20% per annum.

Another excellent investor option is NIC Asia Dynamic Debt Fund (NICDDF). NIC Asia Capital Limited manages this fund, aiming to generate regular income and capital appreciation by investing in a diversified portfolio of debt and money market securities. The fund has a good track record of performance and has provided consistent returns to investors over the years.

Siddhartha Systematic Investment Scheme (SSIS) is another good option for investors. Siddhartha Capital Limited manages this fund, aiming to provide long-term capital growth by investing in a diversified portfolio of equity and equity-related securities. The fund has a good track record of performance and has provided consistent returns to investors over the years.

Lastly, NMB Saral Bachat Fund- E (NMBSBFE) is a good option for investors looking for a low-cost investment option. NMB Asset Management Limited manages this fund, aiming to provide long-term capital growth by investing in a diversified portfolio of equity and equity-related securities. The fund has a good track record of performance and has provided consistent returns to investors over the years.

In conclusion, SIP is an excellent way for individuals to save and invest for their long-term financial goals. The four mutual funds mentioned above are all good options for investors. It is difficult to pinpoint the best SIP in Nepal, as it is essential to consult a financial advisor before making any investment decisions. It's important to do proper research on the fund and the fund manager's performance and consider one's risk appetite, financial goals, and investment duration before making a decision.

Comparison between 3 SIPs in Nepal: NIBL Sahabhagita Fund, Siddhartha Systematic Investment Scheme, and NMB Saral Bachar Fund-E

When investing in mutual funds, it's essential to compare different options and choose the one that best fits your financial goals and risk appetite. The above HTML comparison table provides a detailed comparison of the NIBL Sahabhagita Fund, Siddhartha Systematic Investment Scheme, and NMB Saral Bachar Fund-E on various factors such as operation, unit holders, entry and exit load, fees and commissions, expense ratio, NAV, and Beta value.

Starting with the operation, the NIBL Sahabhagita Fund has been operating for two years and ten months, while the Siddhartha Systematic Investment Scheme has been used for ten months only, and the NMB Saral Bachar Fund-E has been operating for eight months only. The number of unit holders for the NIBL Sahabhagita Fund is 19957, for the Siddhartha Systematic Investment Scheme is 40641, and for the NMB Saral Bachar Fund-E is not mentioned.

All the funds have no entry load. However, the exit charges are different for all the funds; the NIBL Sahabhagita Fund charges 0-6 months – 1.5%, 6-12 months- 1.25%, 12-18 months- 1%, 18-24 months – 0.75%, above 24 months -0%. Siddhartha Systematic Investment Scheme charges Upto 36 months -1.5%, above 36 months – 0%. and NMB Saral Bachar Fund-E charges 0-6 months – 1.5%, 6-12 months- 1.25%, 12-18 months- 1%, 18-24 months – 0.75%, above 24 months -0%.

All the funds have different fees and commissions; NIBL Sahabhagita Fund charges Dp Fee/SEBON charges as prescribed, Fund Management Fees – 1.25%, Depository Fees – 0.2 %, and Fund Supervisor Fees- 0.12%. Siddhartha Systematic Investment Scheme charges Dp Fee/SEBON charges as prescribed, Fund Management Fees – 1.25%, Depository Fees – 0.2 %, Fund Supervisor Fees- 0.11%. And NMB Saral Bachar Fund-E charges Dp Fee/SEBON charges as prescribed, Fund Management Fees – 1.25%, Depository Fees – 0.2 %, and Fund Supervisor Fees- 0.10%.

The expense ratio for the NIBL Sahabhagita Fund is 1.13%, for the Siddhartha Systematic Investment Scheme is 1.96% in the last four months, 2.32% in Chaitra month 2078, and for the NMB Saral Bachar Fund-E is 1.34% in last four months, 1.64% in Chaitra month 2078.

The NAV for the NIBL Sahabhagita Fund is Rs 11.49, the Siddhartha Systematic Investment Scheme is Rs 9.01, and the NMB Saral Bachar Fund-E is Rs 9.63. The beta value for the NIBL Sahabhagita Fund is 0.55, the Siddhartha Systematic Investment Scheme is 0.25, and the NMB Saral Bachar Fund-E is 0.56.

Having said that, all three funds offer different investment opportunities and have their unique features. It's essential to consider your financial goals, risk appetite, and investment duration before making a decision.

How to register for SIP in Nepal online?

SIP (Systematic Investment Plan) is a popular way of investing in Nepal. It allows individuals to start investing with a small amount of money and make regular investments at fixed intervals. One of Nepal's best options for SIP is the NIBL Sahabhagita Fund. In this article, we will discuss registering for the NIBL Sahabhagita Fund's SIP online.

The first step to register for SIP online is to go to the official portal of NIBL Capital. On the top right of the webpage, where "Mutual Fund" is written, you will see several options; tap "Online - NIBL Sahabhagita Fund." On the new web page that opens, you will see "Unit Purchase" and "SIP Registration" on the menu bar. Click on "SIP Registration."

You must fill in all the required details correctly, including your name, address, contact information, and investment amount. After filling in the required details, proceed to the payment page. You can pay via Esewa, Connect IPS, Khalti, or NIBL mobile banking. After some time, you will receive an email from NIBL Ace Capital with the receipt of payment.

It's important to note that you must provide a copy of your citizenship while registering for SIP. In case you are filling up the form of SSIS, you will also need to provide BO or Mero share details.

While SIP has many benefits, it's essential to consider the pros and cons of SIP before registering. Pros of SIP include imposing the discipline of saving, starting with a small amount, less risk to capital, and reducing the overall investment cost. Cons of SIP have a long-term commitment, missing buying opportunities and bargains, and penalties may be imposed if withdrawn early.

In conclusion, registering for SIP in Nepal is a straightforward process that can be done online. By following the steps outlined in this article, you can easily register for the NIBL Sahabhagita Fund SIP and start investing for your long-term financial goals. It's essential to consult with a financial advisor before making any investment decisions.

Payment Methods for SIPs in Nepal

There are several methods to pay for SIP online. Some of the standard techniques include:-

1. Connect IPS: Connect IPS (Internet Payment System) is a payment gateway that enables individuals to make online payments for various services, including SIP. It is widely used in Nepal as it is a secure and easy-to-use platform that accepts payments from multiple banks and digital wallets.

2. Khalti: Khalti is a digital wallet service that allows individuals to make payments for various services, including SIP. It is a secure and convenient platform that enables mobile phone users to pay.

3. E-Sewa: Esewa is another digital wallet service that allows individuals to make payments for various services, including SIP. It is a user-friendly platform that enables users to make payments using their mobile phones and other methods, such as internet banking and bank deposit.

Not all mutual funds accept all the payment mentioned above, so it's essential to check with the mutual fund company before choosing the payment method. Also, it's always better to select a payment method that is convenient and secure for the individual.

Can I Cancel SIP in Nepal anytime?

Yes, you can cancel your SIP in Nepal anytime by contacting the mutual fund company where you have set up your SIP. The process for canceling a SIP may vary depending on the mutual fund company, but generally, you will need to submit a written request to cancel the SIP.

It's also important to note that if you cancel your SIP, you will lose any returns generated on the investments made so far. Additionally, if you have invested in a closed-ended fund, the units may not be traded in the secondary market, so you may not be able to sell them and get cash immediately.

It's also important to consider why you are canceling your SIP. Suppose you are doing so because of financial difficulties. In that case, it may be better to speak to a financial advisor to see if there are other ways to address your financial situation, such as reducing the amount you are investing in your SIP rather than canceling it entirely.

Contacting the mutual fund company can cancel your SIP in Nepal anytime. Still, it's essential to consider the consequences of doing so, such as the loss of returns on your investments made so far and the unavailability of cash if you are invested in closed-ended funds. It's always better to speak to a financial advisor before deciding.

What is Dividend Reinvestment Plan in Nepal?

Dividend Reinvestment Plan (DRIP) is a type of investment plan offered by some companies and mutual funds in Nepal. Instead of receiving cash dividends, the dividends are automatically used to purchase additional stock or fund shares.

With a DRIP, the dividends earned by an investor are automatically reinvested to purchase additional shares of the stock or fund. This allows investors to automatically increase their ownership in the stock or fund over time without making other cash investments.

DRIPs are typically offered by companies and mutual funds that pay regular dividends to their shareholders. By participating in a DRIP, investors can increase their ownership in the company or fund over time without making additional cash investments.

It's important to note that Dividend Reinvestment Plan (DRIP) is not widely available in Nepal. It's a relatively new concept in Nepal's capital market. Not all companies and mutual funds offer DRIPs, and the availability of DRIPs can vary depending on the company or fund. It's always better to consult with the fund manager or the company before investing in DRIP. Currently, only a few mutual funds in Nepal offer DRIPs as an option for their investors.

In summary, Dividend Reinvestment Plan (DRIP) is a type of investment plan where instead of receiving cash dividends, the dividends are automatically used to purchase additional stock shares or fund shares.