The new year 2023 is just a few months away. Like new resolutions, you must have new wishes to fulfil and goals to meet next year. The best way to achieve them is to start investing and saving right now. A systematic investment plan (SIP) for mutual funds can help you with just that. You can invest a fixed amount periodically to save in a disciplined way. By using an SIP calculator, you can check an estimate of the expected returns subject to market conditions. This can help guide you on when to increase your investment for higher returns.

But first of all, you need to determine how much you should invest ideally to meet your 2023 goals. Here are some tips for that.

Identify Your Financial Goals

Time to figure out what you wish to achieve in 2023. It can include goals like: 

• The new iPhone that launches in 2023
• A holiday plan
• Loan repayment
• Your marriage
• A new car
• A bigger home
• Opening a new business
• Your child's higher education
• Your child's marriage

List down all the objectives you wish to meet next year. If planned, write down the months in which you want to fulfil them to decide a timeline for each. This is important to determine how long you should invest for each goal and which ones must be prioritised. If you invest every month, use the SIP calculator monthly to ensure that your investments are on track.

Research the Expected Rate of Inflation 

Since a rise in inflation means a decrease in your purchasing power, it implies that you need to invest more to achieve the same target of returns. So, make sure to check the rate of inflation expected in 2023. As per the latest edition of SBI's research report Ecowrap, the inflation rate in India is expected to fall from 7% to 5% by March 2023. That is good news! Mention the inflation rate on a mutual fund calculator to evaluate the expected returns subject to inflation. To play safe, you can consider a higher rate of inflation to decide on your investments.

Calculate How Much to Invest

Now consider the funds needed to achieve your 2023 objectives and adjust the same to inflation. Then use the SIP calculator to determine the required amount of investment based on a suitable frequency (monthly, quarterly, bi-annually or yearly). Set the tenure in months for each goal and calculate how much you should invest periodically to get enough returns for every goal. In your investment journey, whenever the inflation rate rises or the market is low, consider stepping up your SIP instead of stopping or withdrawing your investment. That's because rupee cost averaging associated with SIP helps you earn more units in a weak market to reduce investment costs and boost returns.

Make the most of the digital solutions of the fund house to make quick investments. You can even use the SIP calculator online on the fund house's website or app to get an instant idea of the expected returns at any point in time.