What is the LIC SIP calculator?
It computes the future value of a fixed monthly investment (SIP) using compound interest — useful for LIC MF schemes, any mutual fund SIP, or to compare traditional LIC plan returns against market-linked investing.
What return should I assume for SIP?
Equity funds have historically delivered 10–14% p.a. over 10+ year periods, hybrid funds 8–10%, and debt funds 6–7%. Our default of 12% is a common long-term equity assumption — adjust as you like. Returns are not guaranteed.
SIP vs LIC policy — which is better?
They serve different goals: LIC gives guaranteed, insured, tax-free savings (~5–6% returns); SIP offers higher growth potential with market risk and no insurance. The ideal combo: term plan for protection + SIP for wealth. See our detailed LIC vs SIP comparison.
How does compounding work in SIP?
Each instalment earns returns, and those returns earn further returns. A ₹5,000 SIP at 12% becomes ~₹11.6 lakh in 10 years (₹6L invested) and ~₹50 lakh in 20 years (₹12L invested) — time matters more than amount.
Is SIP tax-free like LIC?
No. Equity fund gains above ₹1.25 lakh/year attract 12.5% LTCG tax. ELSS SIPs get 80C deduction. LIC maturity is tax-free under 10(10D) conditions — factor this in when comparing.
