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ICICI Prudential SIP Calculator

ICICI PRUDENTIAL SIP CALCULATOR

SIP CALCULATOR

Investment Amount is required

Expected Annual Returns is required

Investment Period is required

ICICI Prudential Mutual Fund

ICICI Prudential Mutual Fund is the second largest asset management company in India. The company was established in 1993 and is now among the leading asset management companies in India. ICICI Prudential AMC is the joint venture between ICICI Bank, a leading private sector bank in India and Prudential Plc, one of the UK’s largest financial services providers.

ICICI Prudential Mutual Fund has a large variety of mutual fund schemes available to invest in SIPs. The following are the category of mutual fund schemes by ICICI Prudential Mutual Fund.

Read the article disclaimer

What is SIP Calculator?

A Systematic Investment Plan (SIP) calculator is an online financial tool that can help to calculate the returns you would earn on your SIP investments. The calculator also tells you how much you would need to invest every month to earn a target corpus. Simply put, it provides a roadmap to achieving your various financial goals.

The calculator can be highly effective in automatically computing complex financial calculations, without the need for a pen and paper. You merely need to provide a few inputs, and the calculator arrives at the result in a matter of seconds. However, the actual return from the mutual fund scheme varies depending on several factors and is subject to market risks. The SIP calculator does not account for the exit load and expense ratio (if any). It is an online tool to calculate the SIP amount to achieve your financial goals, based on an expected annual return.

How does ICICI Prudential SIP Calculator helpful to you?

A Systematic Investment Plan (SIP) is a disciplined way of investing wherein a fixed amount of money is invested in a pre-defined mutual fund scheme at a fixed interval. You can plan the amount you want to invest in SIP Mutual Funds and eliminate the burden of lump-sum investments at a single time.

ICICI Prudential SIP Calculator is an excellent planning tool that will help you to estimate the number and value of investments required over an estimated investment period to achieve your financial goal.

Some of the benefits of using the ICICI Prudential SIP Calculator

  • Plan your Mutual Fund SIP investments efficiently
  • Get an estimate of the total value of your investments at the end of the SIP tenure
  • Save time on manual calculations with accurate results
How does inflation play a major role in SIP calculation?

With ICICI Prudential SIP Calculator, you can calculate your inflation-adjusted returns. Our calculator will help you to find out how much you will need in the future to meet your current expenses whilst keeping up with inflation.

How does inflation play a role in one’s investing process through SIPs?

Inflation plays an important role in the process of investing, especially over the long term. Inflation eats into the purchasing power of money. Using a normal SIP calculator, you might have calculated the maturity value but ignored the impact of inflation. You may end up not saving the right amount as the purchasing power of money keeps coming down because of inflation. The cost of the goal in later years will be much more than it is at today’s cost.

For example, an education that costs Rs 5 lakh at today’s cost, may cost you Rs 20 lakh after 20 years! So if an investor invests Rs. 1000 as SIP every month and if inflation increases 5 per cent in the month, then the worth of his SIP in the second month is only Rs. 950. 

So you must adjust for inflation when you calculate your SIP amount to achieve your financial goals. ICICI Prudential inflation-adjusted SIP calculator is an effective financial tool that will help help you to calculate the amount required to save as SIP over the planned period. 

How do calculate the SIP returns with ICICI Prudential SIP Calculator?

This is a frequent question many investors ask.  Using the ICICI Prudential SIP calculator is the best way to find out your SIP investments.

Input

A SIP return calculator for mutual funds generally has four input boxes. They are:

  1. Monthly investment amount
  2. Investment period 
  3. Expected annual returns
  4. Inflation rate %, if required.

Output

With the given inputs, the calculator determines the following values:

  1. Total Investment: It is the sum of all the SIP investments until the end of the investment tenure.
  2. Profit Earned: The total amount of profit gained by the investment, during the investment tenure.
  3. Maturity Value: Maturity value is the total amount one can expect from their mutual fund investments. This value is the sum of total investments and the profit earned.

Also, the ICICI Prudential SIP Calculator provides a graphical representation (SIP Investment Chart) of the investments. The chart depicts a comparison between the total amount invested and the total profit earned. The calculator also provides a comparison of maturity value for 10 more different investment periods to assist the users to take the right investment decision.

Steps in using ICICI Prudential SIP Calculator
  • Enter the amount you wish to invest in a fund every month or week. For instance, it can be as little as Rs. 500 or as high as Rs. 10,000 (or more), depending on the amount you wish to invest.
  • Next, you should input the tenure of investment. You need to decide the time for which you want to invest in the fund through the SIP. Generally, fund houses require investors to stay invested in the SIP for at least six months. However, you may want to stay invested for a more extended period (say three years or more) that could help you achieve reasonable returns.
  • Next, you need to enter the rate of return you expect on the investment. This value is generally based on the fund’s past performance.
  • Finally, once you input these values, hit on the ‘calculate’ button to find out the corpus you could earn in the specified period. You can adjust the values to find out what works best based on your budget and goals.
How does the ICICI Prudential SIP calculator work?

A SIP plan calculator works based on the inputs entered by the users. You need to enter the amount of investment, frequency of investment, duration of investment, and the expected returns.

ICICI Prudential SIP calculator works based on the following financial formula.

FV = P [ (1+i)^n-1 ] * (1+i)/i

Where,

FV – Future value or the amount at the maturity,
P – Amount invested through SIP,
i – Compounded rate of return,
n – investment duration in months,
r – Expected rate of return

For example

Let’s take an example- you want to ₹1,000 per month for 12 months at a periodic rate of interest of 12%.

The rate of return per month would be 12%/12 = 1/100=0.01

FV= 1000 [(1+0.01) ^12 – 1] * (1+0.01)/0.01

Hence, in a year, you will get approximately ₹12,809.

Please do keep in mind that the rate of returns on Mutual Funds changes as per market conditions and risks. The future performance of the fund, whether increased or decrease, may impact the estimated returns.

Benefits of using ICICI Prudential SIP Calculator?

As the mutual funds don’t provide any guarantee to investors when it comes to the returns, the investors might find it difficult to figure out how much their money will grow in the future or how much they need to invest to reach a specific goal.

The ICICI Prudential SIP Investment Calculator helps overcome these problems and provides the following key advantages to investors: 

  • ICICI Prudential SIP Calculator provide immediate results based on your inputs. Calculating the future value of your investments has never been easier. You don’t need to waste time crunching numbers.
  • It is very easy to understand and calculate the expected maturity value using the ICICI Prudential SIP calculator. You don’t have to be a math or finance expert to calculate using the calculator.
  • ICICI Prudential SIP calculator will help you to plan your specific goals and make informed decisions on how to reach your financial goals with minimum hassle.
  • ICICI Prudential SIP calculator helps you adjust your results for inflation, which many other calculators don’t provide. Due to inflation, everything costs more over time and most SIP calculators in India are not able to provide you inflation-adjusted results. The SIP calculator will give you the result that will be inflation adjusted. You can also calculate your value without adjusting to inflation.
SIP Frequently Asked Questions (FAQs)
What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a systematic approach to investing in share market and mutual funds and involves allocating a small pre-determined amount of money for investment in the market at regular intervals (usually every month).

How is SIP beneficial to investors?

A SIP gives a flexible and convenient way of investing with long-term growth potential, the power of compounding and rupee cost averaging.

Is SIP a mutual fund?

People perceive that SIP is either a mutual fund or different from a mutual fund. However, the fact is that SIP is a style of investment and not a fund/scheme or a stock or an investment avenue. It is a vehicle to invest periodically in a fund/scheme of your choice.

Does SIP mean investing only in equity funds?

When it comes to mutual funds there is a general misconception that investing in mutual funds means investing in stocks. The same is felt about SIPs. SIP can be made in an equity, debt or hybrid scheme. This entirely depends on the investment horizon and risk-taking capacity of an individual. SIPs generally work best for equity and equity-oriented hybrid funds given that these are prone to market fluctuations. However, for investment discipline, one can also invest in debt funds also.

How is SIP returns calculated?

The formula to calculate SIP is, FV = P [ (1+i)^n-1 ] * (1+i)/i

Where,

FV – Future value or the amount at the maturity,

P – Amount invested through SIP,

i – Compounded rate of return,

n – investment duration in months,

r – Expected rate of return

How to calculate SIP returns?

If you are to estimate the returns your SIP investment is going to provide your in future, then you have to follow the simple steps mentioned below:

  • Go to our SIP Calculator
  • Enter the SIP amount of your choice
  • Enter the duration of your SIP
  • Enter the expected rate of return using the sliding scale

Once you have entered the details above, our SIP calculator will show the estimated returns your SIP investment would generate.

When can i start SIP- at any time or when the market is high ?

SIP can be started at any point in the time and at any stage of the market. The idea of SIP is to avoid the timings of the market and start investing with a purpose. Due to rupee cost averaging maximum benefits are attained irrespective of the market’s condition.

What is the minimum amount to start a SIP ?

The investors can start investing in SIP mutual funds with a minimum amount of as low as Rs. 500.

How can I investin a SIP?

You need to choose the mutual fund scheme after analysing various factors including past performance, expected returns, your financial goals etc. Then go to the website of the mutual fund to start the SIP online. Most of the banks provide the facility on their net banking portals to invest in mutual funds and SIPs. Also, there are lots of web-based platforms and mobile apps that provide the facility of enrolling for SIP. You need to complete your KYC if you are a first-time investor.

What is the frequency of investing in SIPs?

You can invest in SIPs in daily, weekly, monthly or quarterly, depending on your earnings and financial goal.

Can I reduce my SIP amount?

The easiest way to reduce your monthly SIP commitment is by stopping all or a few of them and re-starting a new one with a lower amount.

How do I cancel my SIP?

If you have started a SIP online, the cancel SIP option is available for upcoming transactions. In case you have started a SIP by visiting a branch, you will have to visit the branch or connect with a relationship manager to have the SIP cancelled.

SIP Calculator Disclaimer

Unifinn or ICICI Prudential Mutual Fund does not guarantee accuracy, completeness or correct sequence of any of the details provided therein and therefore no reliance should be placed by the user for any purpose whatsoever on the information contained / data generated herein or on its completeness/accuracy. The use of any information set out is entirely at the User’s own risk. Users should exercise due care and caution (including if necessary, obtaining the advice of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. Unifinn does not undertake any liability or responsibility to update any data. No claim (whether in contract, tort (including negligence) or otherwise) shall arise out of or in connection with the services against Unifinn. 

Article Disclaimer

This article is neither a promotion nor a recommendation of any mutual fund schemes by any of the asset management companies mentioned in this article. The external links given in the article are given only to assist the users to get more insights into the schemes to take an informed decision and are not meant to promote any mutual fund schemes. Mutual fund investments are subject to market risks. The users of the information must check the scheme-related documents before taking any investment decisions.

The use of any information set out is entirely at the User’s own risk. Users should exercise due care and caution (including if necessary, obtaining the advice of tax/ legal/ accounting/ financial/ other professionals) prior to taking of any decision, acting or omitting to act, on the basis of the information contained / data generated herein. Unifinn does not undertake any liability or responsibility to update any data. No claim (whether in contract, tort (including negligence) or otherwise) shall arise out of or in connection with the services against us. 

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