LIC SIP Calculator

One of the preferred methods of investing in LIC Mutual Funds is SIP (Systematic Investment Plan). It allows investors to make small fixed contributions towards their LIC mutual fund investments. The frequency of making the contribution can be daily, weekly, monthly or yearly. It is best suited for investors who want to invest in smaller amounts, ensure disciplined investing and avoid the risk of market timing.

To see how your small investments can grow into substantial corpus, use LIC SIP Calculator. It allows you to estimate your future corpus and calculate returns for monthly SIPs and lump sum LIC mutual fund investments.

LIC SIP Calculator works on a standard formula, which enables investors to assess the potential growth of their SIP investments. The formula is as follow:    

Were, FV represents the future value of investment, i is the rate of return, P stands for investment amount and n denotes the number of installments. 

Note that the value of ‘i’ is calculated as {(1 + Annual Return)^1/12} – 1

Below is its breakdown with a practical example:   

Note: The returns are illustrative and not guaranteed. Actual returns may vary based on the market performance and other influencing factors.

Using the LIC Mutual Fund SIP Calculator is easy. All you need to do is enter values of these inputs:

• The amount you plan to invest periodically like Rs. 500, Rs.1,000 or Rs. 5,000. 
  
• The average percentage return you expect to earn on your investment such as 10%, 12%, or 15% yearly. Based on the past performance of the LIC Mutual Fund scheme.
  
• Enter the number of years you expect to be invested, e.g., 5 years, 10 years or longer. 

Once you enter all the required details, the SIP calculator will show you the estimated maturity value of your investment, projected returns and total amount invested. 

Advantages of Using LIC SIP Calculator 

The benefits of using an LIC Mutual Fund SIP calculator is as follows:

• Estimates Future Returns: This helps you estimate the potential value of your LIC mutual fund investments based on your SIP amount, tenure and expected rate of return. 
• Simplifies Financial Planning: Assists you in planning your investments according to your financial goals and investment time horizon. 
• Compares Different Scenarios: You can modify factors like your LIC SIP amount, tenure and anticipated returns to compare various investment options.
• Calculates Required Investment: Helps you calculate the monthly SIP amount required to achieve your short-term or long-term financial goals. 
• Saves Time and Effort: Get instant and accurate calculations without the need for manual computations.

Both the LIC Mutual Funds Lump sum Calculator and SIP Calculator help estimate the potential returns on your investments based on the investment amount, tenure and expected rate of return. However, the key difference lies in the investment method.

A lmp sum calculator is used for a one-time investment, whereas a SIP calculator is designed for regular monthly investments made over a specific period.

How to Use LIC MF Lump sum Investment Calculator

• Enter the one-time investment amount in the MF calculator.
• Choose the investment tenure.
• Select the expected rate of return.
• Click "Calculate" to view the estimated maturity value and returns.

How to Use LIC Mutual Funds Systematic Investment Plan Calculator 

• Enter the monthly SIP amount.
• Choose the investment duration.
• Select the expected rate of return.
• Click "Calculate" to view the estimated corpus, total investment amount and projected returns.

Step-Up SIP is also called Top-Up SIP. It is an investment feature that allows investors to automatically increase their SIP contributions at regular intervals, usually every year. Investors can increase their SIP amount by a fixed amount or percentage as their income increases. This approach helps in increasing long-term wealth creation, building a bigger investment corpus, managing the rising financial goals and potentially staying ahead of inflation.

How much can you earn if you invest in LIC mutual funds via lump sum and SIP?

The following table is the demonstration of how much you can build corpus through Lump sum and SIP: 

Lump Sum Investment at 17% p.a Rate of Return

SIP (Rs. 5,000 monthly) at 17% p.a Rate of Return 

Note: The returns are illustrative and not guaranteed. Actual returns may vary based on the market performance and other influencing factors.

Top LIC Mutual Funds for Wealth Creation 

LIC mutual fund offers in several categories such as equity funds,debt funds, hybrid funds, ETF & Index funds, solution oriented funds etc. Out of 43 funds we have chosen the top LIC mutual funds based on their performance in 5 years. Hence, the list may change over time. Check and compare between all the schemes before investment:     

• LIC MF Gold ETF FoF Direct-Growth
• LIC MF Infrastructure Fund Direct-Growth
• LIC MF Small Cap Fund Direct-Growth
• LIC MF Dividend Yield Fund Direct Growth
• LIC MF Midcap Fund Direct-Growth

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