LIC SIP Calculator

LIC SIP Calculator

The mutual fund industry in India is thriving, and one of the reasons for this is the growing popularity of Systematic Investment Plans or SIPs. With so many mutual funds to choose from, selecting the right one can be a daunting task. That’s where the LIC SIP Calculator comes in — it simplifies the process of estimating potential returns for various LIC mutual fund schemes.

How does the LIC SIP Calculator work?

LIC mutual fund offers an easy way to estimate potential returns on investments made through SIPs. The LIC SIP Calculator estimates the returns based on inputs such as the amount you plan to invest, the expected return rate, and the investment duration.

The calculator facilitates enhanced financial planning by offering a projection of the returns that could be earned through a SIP investment.

It must be noted that the calculator provides estimates based on current data, and actual returns may vary due to market fluctuations.

How to use the LIC SIP calculator?

The LIC SIP calculator uses three parameters to calculate the estimated returns — monthly investment amount, expected rate of return, and the investment period:

• Launch the LIC SIP Calculator.
• Start by entering the amount you plan to invest each month.
• Choose the specific LIC fund in the space provided in the calculator.
• Then specify the duration, or the length of time, you intend to invest.

The calculator will estimate your returns based on these parameters and the fund’s historical performance.

What is the formula to calculate returns using the LIC SIP calculator?

To calculate potential estimated returns of SIP investment, the LIC mutual fund calculator uses this formula:

FV = [P x R x (1 + i)^(n-1)/i] x (1 + i)

Here:

• FV is the future value of your investment
• P stands for the principal
• R is the expected rate of return
• i is the compound rate of return
• n denotes the number of instalments

Benefits of investing through SIP

• SIPs promote regular investments, facilitating financial discipline and wealth-building over time.
• Investments can be started as low as ₹100 per month.
• Investing through an SIP allows you to earn passive returns.
• SIPs enhance wealth growth exponentially over time as the investment period increases due to the compounding effect.
• SIPs offer the flexibility to start and stop investment as and when required.

How can LIC SIP Calculator help you?

• The calculator is easy to use, simplifying the process of estimating SIP returns for LIC mutual fund schemes.
• It streamlines the calculation process, eliminating the need for manual calculations of maturity values.
• Investors can quickly assess the potential estimated returns of various LIC schemes, helping them in decision-making.
• The LIC SIP calculator allows you to compare various plans by estimating their maturity amounts and returns, thereby helping you make an informed decision about the plan that best suits your investment goals.

Examples of LIC SIP growth

Example 1:

Monthly Investment: ₹25,000

Duration: 15 years

Expected Annual Rate of Return: 13%

Total Investment: ₹25,000 × 12 months × 15 years = ₹45,00,000

Future Value: Approximately ₹1,38,92,032

Example 2:

Monthly Investment: ₹12,000

Duration: 10 years

Expected Annual Rate of Return: 13%

Total Investment: ₹12,000 × 12 months × 10 years = ₹14,40,000

Future Value: Approximately ₹29,60,168