LIC SIP Calculator
The mutual fund industry in India has seen tremendous growth in recent years, with assets under management (AUM) soaring from Rs 22.79 trillion in November 2017 to an astounding Rs 40 trillion in November 2022. This represents a nearly twofold increase in just five years! One of the reasons for this impressive growth is the increasing popularity of Systematic Investment Plans (SIPs) among Indian investors. As of November 2022, SIP investments stood at an impressive 13,306 crores. With a vast array of mutual funds available, deciding on one can be overwhelming. The LIC SIP calculator makes this easy and manageable. However, considering the LIC plan, you can use the LIC SIP calculator to estimate your potential returns and make an informed decision.
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What is a LIC SIP Calculator?
LIC of India established the LIC mutual fund in April 1989. LIC Mutual Fund is becoming a preferred Investment Manager among the investor community due to a systematic investment discipline and a high standard of financial ethics and corporate governance.
You can use the LIC SIP calculator to estimate your potential investment returns if you invest in LIC mutual funds via the SIP route. A SIP calculator's inputs typically include the investment amount or target amount, the anticipated LIC SIP interest rate, the investment tenure, and the step-up rate.
To use the LIC SIP calculator, investors must fill out the appropriate input fields for their investment amount, tenure, interest rate, and step-up percentage. It is crucial to keep in mind that the performance of the funds is subject to market fluctuations, so LIC SIP Calculator makes no return guarantees. Depending on how the fund performs, returns may change.
How does the LIC Mutual Fund Calculator work?
Based on the historical performance of the scheme, the SIP return calculator LIC is a simple tool for estimating the LIC mutual fund performance. Investors must realise, though, that the calculations do not ensure such returns and can only be used to forecast your investment performance.
The performance of a mutual fund may also differ from the final value of an investment because the performance of mutual funds is primarily influenced by market performance.
The return rate is an assumption made by every tool that calculates investment value at maturity. Typically, users must enter this return value into the online SIP calculators. However, the LIC SIP calculator selects this value based on the program's prior performance.
How is the LIC Mutual Fund Calculator?
SIPs from mutual funds are an excellent option for risk-averse investors. Comparatively, it is a more strategic investment plan than the lump-sum mutual fund scheme. SIPs enable you to invest a small amount each month into a mutual fund scheme rather than a sizable portion of your corpus all at once.
A LIC SIP calculator is a tool that helps you calculate the estimated returns on your investments in a systematic investment plan (SIP) offered by the Life Insurance Corporation of India (LIC). It allows you to input various parameters, such as the investment amount, tenure, and rate of return, and then calculates the estimated maturity value of the investment.
This helps investors to plan their investments better and make informed decisions. It also helps monitor the investment's progress and make necessary changes.
LIC Mutual Fund SIP calculator has several benefits, including
- Calculating the maturity amount of your investment. You can enter the details of your SIP investment, and the calculator will give you an estimate of the maturity amount you will receive at the end of the investment period.
- The LIC SIP calculator helps you plan your investment better. You can use this to adjust the investment amount and period to see how it affects the maturity amount. This can help you decide on the best investment plan for your needs.
- It is convenient and easy to use. A LIC SIP calculator is an online tool you can use from the comfort of your home. You do not need to visit a physical branch or spend time filling out forms.
- The LIC SIP calculator can also help you calculate the returns on your investment, which can help you decide if the investment is worth it.
- It helps you to compare different plans. The LIC SIP calculator can compare different plans, including the maturity amount, returns, and other features, which can help you make an informed decision about which plan is best for you.
Formula to Calculate LIC SIP Returns
To provide you with an accurate returns forecast, a mutual fund calculator LIC uses the following formula
FV = [P x R x (1 + i) n-1/i] x (1 + i)
FV= Future Value
R= Expected Rate of Returns
i= Compound rate of return
n= Number of instalments
This calculation may take some time for you to calculate. But you can efficiently complete the task using the LIC SIP investment calculator.
Suppose you invest Rs. 2000 monthly through a SIP plan with a 2-year tenure with an expected return of 12%. The calculator estimates the return value right away:
- Amount invested: Rs. 24,000
- Expected return amount: Rs. 25, 619
- Wealth gain: Rs. 1,619
In connection to the above illustration, the projected SIP returns based on these variables can be listed as follows.
How to use the LIC SIP Calculator?
As mentioned above, a SIP calculator requires some inputs to calculate the SIP returns. The LIC SIP Calculator uses the following information:
- Monthly investment amount
- Your fund name or expected growth rate
- Investment duration.
The calculator calculates the scheme's historical returns based on the inputs above. Consider utilising the calculator to your benefit by doing the following:
Step 1: Enter your desired monthly investment amount.
Step 2: Set the investment amount for the fund, such as the LIC Liquid Fund Regular Growth Fund, in step two.
Step 3: Decide how long the investment will last.
Based on the scheme's historical earnings, SIP contribution, and investment period, the calculator also provides a value for the investment period.
What are the Benefits of the LIC SIP Calculator?
The LIC SIP calculator estimates the performance of any LIC mutual fund using the scheme's historical performance. The tool helps you choose better investments by showing where the fund stands within its category. Here are some key benefits of the LIC SIP calculator.
- User-friendly: An efficient and user-friendly tool for calculating SIP returns for LIC mutual fund schemes.
- Simpler calculations: Additionally, the tool eliminates the tedious manual calculation of the maturity value.
- Fast results: As a result, any investor can quickly check the scheme's potential returns.
Other SIP Calculators
Some top-rated LIC Mutual Funds per 3-year returns include
- LIC MF Infrastructure Fund
- LIC MF Large and Mid Cap Fund
- LIC MF Nifty 50 Index Fund
- LIC MF Large Cap Fund
- LIC MF Tax Direct Plan
A mutual fund's performance is significantly dependent on market performance. Your investments in the LIC SIP could generate a capital gain depending on the fund you select. Many of LIC's equity programs are regarded as more reliable if they have a CRISIL rating of 3 or higher.
SIPs can aid novice investors in forming sound investing practices. You can invest a predetermined sum each month with the LIC SIP, and your funds will increase over time.
You can use your 5paisa trading and Demat account to open a SIP account with LIC. Here’s how:
Step 1: Log in to your Demat account on 5paisa.
Step 2: Choose the desired LIC mutual fund scheme.
Step 3: Select the “Start SIP” option.
Step 4: Fill in all the required details and upload all documents.
Step 5: Submit the application to open a SIP account.