ELSS Calculator

The Equity Linked Savings Scheme (ELSS) is among the few market-linked investment options that provide tax benefits under section 80C of the Income Tax Act of 1961. Since the performance of ELSS funds is directly linked to the financial markets, estimating the returns can be quite challenging. Here is where an ELSS calculator can help. It is a powerful tool designed to help investors estimate potential returns from an Equity-Linked Savings Scheme. With an ELSS mutual fund calculator, investors can make informed decisions and plan their investment strategies more effectively.

An ELSS calculator is a unique online financial tool that helps investors calculate the potential returns that the Equity-Linked Savings Scheme will likely deliver over a specific investment tenure. The calculator takes into account various inputs, such as the initial investment amount (in the case of lump sum investments), monthly investment amount (in the case of systematic investment plans), investment duration and the ELSS fund.

Once these inputs are provided, the ELSS return calculator applies complex mathematical formulas to project the future value of their investment. In addition to this, the tool also provides a breakdown of the amount invested over the selected tenure and the gains from the said investment. With the help of an ELSS calculator, investors can gain crucial insights into the future performance of the choice of their fund and visualise the growth of their investment over time.

Not all mutual funds may perform identically. In fact, the returns tend to vary depending on the ELSS fund and the prevailing market conditions. Therefore, if you are interested in an Equity-Linked Savings Scheme, it is advisable to first estimate the amount of returns you are likely to get before investing.

However, since the investment option is market-linked, projecting the potential returns manually can be complex and challenging. Furthermore, there is also the chance of committing errors and mistakes, which can skew the final results. An ELSS calculator can help you avoid all of that by providing a clear projection of potential returns based on a few key variables.

One of the key features of an ELSS mutual fund calculator is its ability to estimate returns irrespective of whether you invest a lump sum or through a systematic investment plan. You can also use the tool to compare lump sum and SIP investment methods to determine which of the two is the most optimal approach for your financial goals.

Not all mutual funds may perform identically. In fact, the returns tend to vary depending on the ELSS fund and the prevailing market conditions. Therefore, if you are interested in an Equity-Linked Savings Scheme, it is advisable to first estimate the amount of returns you are likely to get before investing.

However, since the investment option is market-linked, projecting the potential returns manually can be complex and challenging. Furthermore, there is also the chance of committing errors and mistakes, which can skew the final results. An ELSS calculator can help you avoid all of that by providing a clear projection of potential returns based on a few key variables.

One of the key features of an ELSS mutual fund calculator is its ability to estimate returns irrespective of whether you invest a lump sum or through a systematic investment plan. You can also use the tool to compare lump sum and SIP investment methods to determine which of the two is the most optimal approach for your financial goals.

An ELSS calculator uses complex mathematical formulas to estimate the potential returns from an Equity-Linked Savings Scheme. The way the calculator functions varies slightly depending on the type you use. Two different types are commonly available: ELSS SIP calculator and ELSS lump sum calculator. Here is a quick overview of how each of these two work.

An ELSS SIP calculator is designed to help you project the returns you are likely to get from an Equity-Linked Savings Scheme if you invest via a systematic investment plan. The systematic investment plan is a unique investment method where you invest a fixed sum of money each month over a specified period.

An ELSS SIP calculator requires you to input three major variables: the type of ELSS fund you wish to invest in, the monthly contribution you are willing to make, and the period of investment. Now, it is important to remember that all Equity-Linked Savings Schemes have a mandatory lock-in period of 3 years. This essentially means that you can only choose an investment tenure of 3 years or above when using the calculator.

Once you enter these values, the calculator will apply them to a mathematical formula to provide you with the potential return from the fund. Here is a small example of how an ELSS SIP calculator works.

Let us say you wish to start a SIP in an ELSS fund that provides a return of 27.41%. You plan to invest Rs. 8,000 each month in the fund for 4 years. When you input these values into an ELSS SIP calculator, you will get the following:

• - Total invested amount: Rs. 3.84 lakhs
• - Gains from the ELSS investment: Rs. 4.64 lakhs
• - Final maturity value: Rs. 8.48 lakhs

An ELSS lump sum calculator is designed to estimate the returns you are likely to get if you invest a lump sum in an Equity-Linked Savings Scheme. This particular type of calculator requires you to input three major variables: the type of ELSS fund you wish to invest in, the lump sum you are willing to invest, and the period of investment.

Upon entering the variables, the calculator will use a mathematical formula to project the value of the fund at the end of the tenure. Here is a small example of how an ELSS lump sum calculator works.

Imagine you wish to invest a lump sum of Rs. 5 lakhs in an ELSS fund that provides a return of 36.53%. You plan to stay invested only until the end of the lock-in period of 3 years. When you input these values into an ELSS calculator, you will get the following:

• Total invested amount: Rs. 5 lakhs
• Gains from the ELSS investment: Rs. 12.37 lakhs
• Final maturity value: Rs. 17.37 lakhs

AThe Research 360 ELSS calculator uses the formula for the future value of money to find the maturity value of SIP or lump sum investments. Let us check out the formula that is used in each case.

If you are investing a lump sum, the ELSS return calculator uses this formula to find the maturity amount:

M = P (1 + r/100)_t

Here, M is the potential maturity value of the investment, P is the initial lump sum that you invest, r is the annual rate of returns expected and t is the investment period in years.

However, if you want to start a SIP in an Equity-Linked Savings Scheme, the ELSS calculator uses the following formula to find the maturity sum:

M = P x [{(1 + r)_n — 1} ÷ r ] x (1 + r)

Here too, M is the potential maturity value of the SIP investment. P is the amount you invest monthly in your SIP, r is the rate of returns expected per year and n is the number of SIP instalments.

The Research 360 ELSS calculator is extremely easy to use. Simply follow the steps given here to find the potential maturity value of your investments.

• Step 1:Select your investment strategy, which could be SIP or a lump sum investment.
• Step 2: Choose the ELSS fund that you wish to invest in.
• Step 3: Enter the amount that you want to invest monthly (in the case of a SIP) or upfront (in the case of a lump sum investment).
• Step 4: Enter the investment tenure in years.
• Step 5: Submit these details in the ELSS calculator online.

The calculator will then use the 1-year XIRR (Extended Internal Rate of Return) for the selected scheme to compute the maturity value of your investment and the potential gains you could earn from the ELSS fund.

• Accurate Investment Projections: An ELSS calculator gives you precise and mathematically accurate estimates of how your investment could grow over time. The result is based on the fund chosen, the investment tenure and the investment amount. With just these details, the calculator gives you valuable insights.
• Customisable Investment Planning : Depending on your investment strategy, you can use the ELSS SIP calculator or the lump sum calculator. This two-in-one computational advantage can help you plan your ELSS investments smartly, whether you decide to invest the whole sum upfront or opt for periodic investments.
• Comparison of ELSS Funds: Different ELSS funds may perform differently based on their portfolio compositions and management style. The Research 360 ELSS return calculator helps you compare the potential outcomes of investing in any of the different ELSS funds available in the stock market.
• Easy and Free to Use:Above all, you do not have to pay any additional charges to use the ELSS mutual fund calculator. It is free for all users. Furthermore, beginners will also find it easy to utilise this online tool because it is clear enough for everybody to understand. All you need to do is enter the details needed.