ICICI SIP Calculator

What is SIP?

SIPs or Systematic Investment Plans are some of the most popular investment options that offer high returns if the amount is invested for the long term. The top reason to buy SIP is that investments can be made as minimum as Rs. 500 and it also serves the dual purpose of savings and investment. Helps in bringing a financial discipline in life with the help of regular investments, Systematic Investment Plans eliminate the financial burden on an individual.

SIP Calculator helps in the computation of estimated returns for investments made under the SIPs.

ICICI SIP Calculator

Systematic Investment Plan or SIP is an online financial tool that helps the investor understand how many investments they have to make in order to attain the desired corpus in the future. SIP calculators are considered to be hassle-free and easy to use and help in achieving accurate results for complex financial calculations. Even though we all know that the financial market is unpredictable, ICICI SIP Calculator only helps in the computation of results keeping the current market scenario in mind. This means that the final results may vary depending upon the situation of the market at the time of withdrawals.

Benefits of ICICI SIP Calculator

ICICI SIP calculator helps in the estimation of regular investments to be made so that the final target is achieved. The following are the benefits of using an ICICI SIP Calculator:

1. Accurate Estimations

   As we know exact returns cannot be estimated due to market volatility, still the ICICI SIP Calculator provides close enough results that help the investor invest more confidently.

2. Easy and Hassle-Free Use

   When compared to manual calculations, ICICI SIP Calculator is more convenient, hassle-free, easy to use, and provides more accurate results. SIP Calculator provides results within seconds whereas manual calculations are more time-consuming.

3. Best for First-Time Investors

   Usage of the SIP Calculator is very simple and easy and hence it is the best financial tool for investment calculation. With minimum details required, ICICI SIP Calculator provides accurate results helping first-time investors invest freely.

How Does ICICI SIP Calculator Work?

The following formula is used for the computation of maturity value received at the end of SIP investment tenure:

FV = P x ({[ 1+ i ] ^ n-1 } / i ) x (1+i)

Here is the elaboration:

FV = Future Value (The amount to be received after maturity)

P = Amount that the investor invests

i = The rate of interest periodically

n = Total number of payments made by the investor to date

Illustration

Mr. Karan invests Rs. 5,000 in a month at 14% through ELSS Fund SIP. If he selects the tenure of 10 years, then the returns will be:

FV = 5,000 x ({[ 1 + 0.14] ^ 120 – 1} / 0.14) x (1 + 0.14)

FV = Rs. 13,10,000

Total returns = Future Value – Invested Amount throughout the tenure

Total returns = Rs. 13,10,000 – Rs. 6,00,000

Total returns = Rs. 7,10,000

How to Use ICICI SIP Calculator?

ICICI Systematic Investment Plan tool is easy to use and hassle-free with minimal complications involved. The following information needs to be entered in the ICICI SIP calculator to compute the maturity amount:

Step 1: The monthly amount that the investor wishes to invest

Step 2: Current Rate of return offered on the particular mutual fund

Step 3: Total tenure the investor wishes to invest for

Step 4: The maturity value will be computed in seconds

Advantages of ICICI SIP Calculator

Following are some of the key benefits of using the ICICI SIP Calculator:

• Hassle free usage

• Accuracy in results

• Quick computation as compared to manual formula

• Helps in better future planning

• Free to use for all