LIC SIP Calculator 2024

LIC SIP Calculator

The mutual fund industry in India has seen tremendous growth these days. One of the reasons for this impressive growth is the increasing popularity of Systematic Investment Plans (SIPs) among Indian investors. The returns from SIP can help you achieve your long term and short term goals.

LIC SIP calculator helps you in this journey. You can use the LIC SIP calculator to estimate the potential returns and make an informed decision.

What is an LIC SIP Calculator?

An LIC SIP (Systematic Investment Plan) Calculator is an online tool that helps the users estimate the maturity value of your investments over a period

Advantages of using an LIC SIP Calculator:

• Helps in setting financial goals: By estimating the returns of your LIC Investments, investors can set realistic financial goals and plan their investments accordingly
• Well-informed decision: LIC SIP Calculator provides a clear picture of your potential returns and help investors take informed decisions about their investments
• Personalized Projections: You can input your desired monthly investment amount, investment tenure, and the expected return rate to see how your SIP could grow over a period
• Visualizing Compounding: The calculator demonstrates the power of compounding, showing how small investments can compound to become a substantial corpus

Why you should invest in LIC SIPs?

• Regular Savings Discipline: LIC SIPs encourage consistent monthly contributions, helping you build a substantial corpus over time.
• Rupee Cost Averaging: By investing regularly, you can mitigate the impact of market volatility through rupee cost averaging
• Power of Compounding: Over time, your investments grow exponentially through the power of compounding which significantly enhances your wealth
• Professional Fund Management: Your investments are managed by experienced professionals, ensuring that your money is strategically allocated and monitored

How does an LIC SIP Calculator work?

1. Input Details: Enter the monthly investment amount, investment period, and expected rate of return.
2. Calculation: The calculator applies the compound interest formula to estimate the future value of your SIP investments.
3. Result: Provides an immediate projection of the maturity amount, aiding in effective financial planning.

The LIC SIP Calculator uses the following formula to calculate the maturity value of the LIC policy:

Maturity Value = [ (P * t * (1 + r)^n) / ( (1 + r)^n – 1) ]

Where,

• P = Monthly SIP amount
• t = Number of years of the SIP tenure
• r = Expected rate of return

For example, suppose you make a SIP investment of Rs. 25000 for the duration of 15 years with expected returns of 13%. The calculator will instantly provide you with the future value of your investment

Amount Invested – ₹3000000

Total returns – ₹ 5600897

FAQ on LIC SIP Calculator

1. Is the LIC SIP Calculator accurate?

While the calculator provides an approximate estimate, actual returns may vary due to market fluctuations and the fund performance. The tool can be taken to calculate the estimated return value of your investment not absolute market value

2. Can I use the LIC SIP Calculator for other mutual funds?

The basic calculation part of compounding rates is the same in other returns. However, it is advised to calculate using the respective fund’s SIP calculator or a generic calculator from a mutual fund aggregator site like Fincover

3. Where can I find the LIC SIP Calculator?

You can find the SIP calculator of LIC on their official website or through mutual fund aggregator site like Fincover

4. Is the LIC SIP Calculator free to use?

Yes, the calculator is available for free and the users can utilize the same to calculate their potential SIP returns

5. Does the LIC SIP Calculator consider inflation?

No, the LIC SIP Calculator does not factor in inflation; it provides nominal returns based on the expected rate