ICICI SIP Calculator

ICICI Prudential SIP Calculator

Systematic Investment Plans (SIPs) are becoming increasingly popular due to their ease of use. With low investments, you can steadily build your portfolio. If you invest in ICICI Prudential mutual funds, estimating your potential SIP returns can become very easy using the ICICI Prudential SIP Calculator.

How does the ICICI Prudential mutual fund calculator work?

The ICICI Prudential SIP Calculator determines the future value of your SIP investments based on details such as monthly investment amount, investment period, and the expected interest rate.

The online tool enables enhanced financial planning as per your financial goal by giving an estimate of the possible earnings. It's important to note that while the calculator provides a projection, actual returns may vary, and the final value of your investment could differ from the estimate.

What is the formula to calculate returns using the ICICI Prudential SIP Calculator?

The online SIP calculator uses a simple formula to generate a forecast value for your assets over the specified period:

FV = P x ({[ 1 + i] n - 1} / i) x (1 + i)

Here:

FV = Future value (final payout at maturity)

P = Principal investment while starting the SIP

i = Annual interest rate (compound interest) in percentage/12

n = Number of months or investment duration

Benefits of investing through SIP

• SIPs encourage regular investments, ensuring financial discipline and helping in the steady accumulation of wealth over time.
• Investing through an SIP eliminates the need to time the market by using rupee cost averaging, buying more units when prices are low and fewer when prices are high.
• Due to the compounding effect, SIPs enhance wealth growth exponentially over time as the investment period increases.

How to use the ICICI Prudential SIP Calculator?

To use the ICICI Prudential SIP Calculator, follow these steps:

• Launch the ICICI Prudential SIP Calculator.
• Start by entering the amount you plan to invest each month.
• Then mention the number of years you intend to continue investing.
• Pick the mutual fund where you would want to invest from the available options.
• The calculator will then display the invested amount, expected returns, and the wealth gained.

How can the ICICI Prudential SIP Calculator help you?

• It helps you in estimating potential savings and earnings with compound interest to plan your investments effectively.
• The ICICI Prudential SIP Calculator helps optimize your portfolio by using the projected SIP returns to balance it across various assets.
• The SIP Calculator gives you a timeline for your earnings and helps you adjust your investment period, if needed, to reach your goals.
• The ICICI Prudential SIP Calculator eliminates manual calculation errors with instant and accurate results.

Examples of ICICI Prudential SIP growth

Example 1:

• Monthly Investment: ₹7,000
• Duration: 5 years
• Expected Annual Rate of Return: 13%
• Total Investment: ₹7,000 × 12 months × 5 years = ₹4,20,000
• Expected gain: ₹1,73,623
• Future Value: Approximately ₹5,93,623

Example 2:

• Monthly Investment: ₹2,000
• Duration: 5 years
• Expected Annual Rate of Return: 15%
• Expected Gain: ₹59,363
• Total Investment: ₹2,000 × 12 months × 5 years = ₹1,20,000
• Future Value: Approximately ₹1,79,363