SIP Returns Calculator: BAJAJ FINSERV ELSS TAX SAVER FUND - REGULAR - IDCW

Understanding SIP Returns for BAJAJ FINSERV ELSS TAX SAVER FUND - REGULAR - IDCW

Systematic Investment Plans (SIP) allow you to invest small amounts periodically (usually monthly) in mutual funds like BAJAJ FINSERV ELSS TAX SAVER FUND - REGULAR - IDCW. This approach helps in instilling financial discipline and taking advantage of Rupee Cost Averaging, where you buy more units when markets are low and fewer when they are high.

Why check historical SIP returns?

Analyzing the historical SIP returns of BAJAJ FINSERV ELSS TAX SAVER FUND - REGULAR - IDCW helps investors understand the consistency of the fund's performance. While past performance is not a guarantee of future results, a fund that has consistently delivered inflation-beating returns over 3-5 year periods is generally considered a strong candidate for long-term wealth creation.

How is XIRR different from CAGR?

For SIPs, XIRR (Extended Internal Rate of Return) is the correct metric to measure performance, not CAGR. Since each installment is invested at a different time, XIRR calculates the annualized return for the entire series of cash flows. The chart above shows the real growth of your money invested in BAJAJ FINSERV ELSS TAX SAVER FUND - REGULAR - IDCW using actual historical NAV data.