LT SIP Calculator

L&T SIP Calculator

Systematic Investment Plans (SIPs) are becoming increasingly popular due to their ease of use. SIPs enable long-term wealth creation with regular investment in smaller amounts.

If you invest in L&T Mutual Funds, estimating your potential SIP returns can become easy using the L&T SIP Calculator.

The calculator assists you in selecting the best mutual fund scheme to meet your financial objectives.

How does a L&T SIP Calculator work?

The L&T SIP Calculator is an online tool that allows users to calculate the potential profits from an SIP in mutual funds. It uses information such as the monthly investment instalments, estimated return rate, and tenure to give you the projected future value of your investments.

This enables enhanced financial planning to align with your long-term goals.

This L&T SIP calculator facilitates comparisons between scenarios by allowing users to change the investment amount, tenure, or projected return rate.

Formula to calculate L&T SIP returns

The online SIP calculator employs a simple formula to provide a predicted value of your investments over the selected 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

• Encourages regular investing which helps in disciplined savings.
• Rupee cost averaging minimises the impact of market volatility on your investments.
• Compounding leads to long-term wealth growth.
• Anyone can start SIP investments with as little as ₹100 per month.
• Flexibility to pause or switch investments as needed.

How to use the L&T SIP calculator?

• Launch the L&T SIP Calculator.
• Select the monthly investment amount.
• Choose an investment period.
• Enter your projected rate of return.

The L&T SIP Calculator will now show you how much profit you could make over the investment period.

How can L&T SIP Calculator help you?

• Estimate Growth: Demonstrates how regular payments might improve your investments.
• Future Returns: Estimates future returns based on the investment amount and duration.
• Budget Planning: Assists in organising funds and setting achievable goals.
• Scenario Evaluation: Consider several investment possibilities with different investment amounts, tenure, and return rates.
• Track Progress: Monitor your progress toward financial goals.

Examples of L&T SIP Growth

Example 1:

• Monthly Investment: ₹5,000
• Duration: 5 years
• Expected Annual Rate of Return: 10%
• Total Investment: ₹5,000 × 12 months × 5 years = ₹3,00,000
• Expected gain: ₹90,412
• Future Value: Approximately ₹3,90,412

Example 2:

• Monthly Investment: ₹10,000
• Duration: 5 years
• Expected Annual Rate of Return: 10%
• Expected Gain: ₹1,80,824
• Total Investment: ₹10,000 × 12 months × 5 years = ₹6,00,000
• Future Value: Approximately ₹7,80,824