Mutual Fund Calculator ICICI Bank

Future Value of SIP Formula:

\[ FV = SIP \times \frac{(1 + r)^n - 1}{r} \]

Future Value (FV):

Total Investment:

Estimated Returns:

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1. What is SIP Investment?

A Systematic Investment Plan (SIP) is an investment method offered by mutual funds where you invest a fixed amount regularly (typically monthly) rather than a lump sum. ICICI Bank offers various SIP options in mutual funds.

2. How Does the Calculator Work?

The calculator uses the SIP future value formula:

\[ FV = SIP \times \frac{(1 + r)^n - 1}{r} \times (1 + r) \]

Where:

\( FV \) — Future Value (INR)
\( SIP \) — Monthly investment amount (INR)
\( r \) — Monthly rate of return (decimal)
\( n \) — Total number of months

Explanation: The formula accounts for compound growth of regular investments at a specified rate of return.

3. Importance of SIP Calculation

Details: Calculating potential returns helps investors plan their financial goals, understand the power of compounding, and make informed investment decisions.

4. Using the Calculator

Tips: Enter monthly SIP amount in INR, expected annual return percentage, and investment duration in years. All values must be positive.

5. Frequently Asked Questions (FAQ)

Q1: What is a good SIP amount to start with?
A: ICICI Bank allows SIPs starting from ₹100, but ₹1000-5000/month is common for meaningful growth.

Q2: What is a realistic return expectation?
A: Equity funds may average 10-12% annually over long term, debt funds 6-8%, but returns vary.

Q3: How does SIP compare to lump sum investment?
A: SIP reduces market timing risk through rupee cost averaging, while lump sum may perform better in rising markets.

Q4: Are SIP returns guaranteed?
A: No, mutual fund SIP returns are market-linked and not guaranteed except in certain debt products.

Q5: What are the tax implications?
A: Equity funds: LTCG tax after 1 year. Debt funds: STCG as per income slab if <3 years, LTCG with indexation after 3 years.