LIC SIP Calculator: A Comprehensive Guide to Plan Your Investments

LIC SIP Calculator comes into play when you want to calculate your SIP or finance before investing in that. So, investing in a Systematic Investment Plan (SIP) through the Life Insurance Corporation (LIC) is one of the smartest way to grow your finance. You can expect the returns while using LIC SIP Calculator.

In this article we are going to discuss all the necessary topics related to LIC SIP Calculator, how it works, benefits of using this, how to use it and etc. So, technically this calculator will helps you to take appropriate investment decisions.

What is an LIC SIP Calculator?

An LIC SIP Calculator is an online tool that helps investors to estimates their potential returns on SIP investments in LIC mutual funds.

In that users need to input some basic investment details like; monthly investment amount, investment tenure and expected rate of return. After using this inputs, calculator computes the expected future value of your investment and you can see the potential growth of your SIP investments.

How Does the LIC SIP Calculator Work?

• Basically, it uses a formula which is a pre-programmed algorithm to calculate the expect future value of the investment which is based on the inputs provided by the particular user. 

Key Inputs:

• Monthly Investment Amount: The particular fixed amount the investor plans to invest on regular basis.  
• Investment Duration (Tenure): The length of time the investor plans to invest their money (Ex.5 years to 10 years or more)
• Expected Rate of Return: The anticipated annual return on the investment, which is an estimate and can be different for everyone. 

Output:

In the output calculator provides an estimated future value of the investor’s investment, the total amount invested, and the potential returns earned after a that much years. 

In a practical way, LIC SIP calculator works on power of compounding to get returns. So, here is the formula which applied;

M = P × [{(1 + r)^n – 1} / r] × (1 + r)

In that,

• M = Maturity amount
• P = Monthly SIP investment
• r = Expected monthly return rate (annual rate ÷ 12)
• n = Total number of months

Let’s take an example and see the calculation:

• Monthly Return Rate (r): 12%/12 = 1% (0.01)
• Maturity Value (M): ₹5,000 × [{(1 + 0.01)^120 – 1} / 0.01] × (1 + 0.01) ≈ ₹11.61 lakhs

This means by investing ₹5,000 on monthly basis for 10 years at 12% returns, you could accumulate approximately ₹11.61 lakhs.

Benefits of Using an LIC SIP Calculator

It provides some benefits like; goal-based planning, future value estimating, understanding about compounding and etc. So, let’see these benefits.

Goal-Based Planning:

The calculator helps to the investors to determine the required monthly investments to reach their financial goals easily. Goals like; buying a house, funding for education as well as retirement planning.

Time-Saving:

Manual calculations take more time to give results while; the calculator provides instant results and saving your time and efforts.

Return Forecasting:

The calculator helps you to estimates the potential returns on your SIP investments. Basically it provides the clear picture of how much of your money can grow over the period of time.

Investment Comparison:

In that, you can compare different investment options by adjusting the SIP amount and you can also compare expected rate of return by allowing you to choose the more suitable plan for you.

Progress Tracking:

The calculator will helps you to tracking your progress towards your financial goals and keep you focused and motivated all the time.

User-Friendly Interface:

The calculator has user-friendly interface so that even if any new investor comes and want to use it then they also can use it easily.

Visualizing Compounding:

The calculator helps to show the power of compounding. It includes graphs and charts that helps you in visualizing. So, you can show how your investments can grow exponentially over a period of time.

What is the LIC SIP Calculator App?

The LIC SIP Calculator App is a kind of mobile or web-based tool that helps investors to calculate their potential returns on SIP investments in LIC or other ULIPs. (LIC SIP Calculator app download)

How to Use the LIC SIP Calculator App?

Step 1: Download the App

At first step you need to download the app which is available on Google Play Store (Android) & Apple App Store (iOS). While, some web-based calculators also there to work without downloading.

Step 2: Enter SIP Details

In the second step, you just need to enter basic details like;

• Monthly Investment: Whatever you want to invest like; ₹1,000, ₹5,000, or any amount.
• Expected Return Rate: 10%, 12%, or as per LIC fund performance.
• Investment Tenure: 5, 10, or 15 years or any number you want.

Step 3: View Results

Here, you get results from your inputs. In that you can see;

Total Invested Amount
Estimated Maturity Value
Wealth Gained (Profit)

Step 4: Adjust & Compare

And at last, you can change inputs to see how different amounts and tenures affect your returns.

Top 5 LIC SIP Calculator Apps

Here is a short description with comparison table of features and platforms of the applications.

Conclusion

So, the LIC SIP Calculator is an essential tool for anyone who are looking to invest in LIC’s mutual funds through SIP. It helps you in forecasting your returns and setting financial goals. By using this tool you can maximize your wealth-building potential.

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