How to Use an ELSS Calculator for Smart SIP Planning and Higher Returns

Tax-saving mutual funds are an effective way to build wealth while reducing tax liabilities. ELSS, or Equity Linked Saving Scheme, is the most popular type of tax-saving fund, providing an opportunity for equity exposure and tax deduction under Section 80C of the Income Tax Act. However, to maximize your returns and plan your investments effectively, using an ELSS calculator is essential.

In this guide, we'll explain how to leverage an ELSS SIP Calculator and ELSS Return Calculator—specifically the one from JezzMoney—for more intelligent financial planning and higher returns.

What is an ELSS calculator?

An ELSS calculator is a handy online tool that helps investors determine the potential value of their ELSS fund investment over time. Investors need to provide basic information, such as the investment amount, the period for which the money will be invested, and the rate of return, to receive quick projections on how their money could increase over time. Thus, the calculator highlights the tax that can be saved, making it quite helpful in financial and tax planning.

Due to its simplicity and advanced features, JezzMoney's ELSS Calculator is highly sought after by both new and experienced investors.

Why Use an ELSS SIP Calculator?

Systematic Investment Plans (SIPs) offer a disciplined approach to investing in funds, including the ELSS. An ELSS SIP calculator enables individuals to plan their monthly investments and provides a forecast of the maturity value based on the chosen duration and anticipated returns.

Key benefits of using an ELSS SIP calculator:

• Disciplined Investing

• Compounding Advantage

• Goal Planning.

JezzMoney's ELSS SIP Calculator lets you test different monthly investment amounts and tenures to find the plan that best suits your goals.

How Does an ELSS Return Calculator Work?

An ELSS return calculator is designed to estimate the potential returns from your ELSS investments, whether you choose the SIP or lump sum mode. The calculator uses compound interest formulas to project the maturity value based on your inputs:

Future Value (SIP)=P×(1+r)n−1r×(1+r)

Where PP is the monthly Investment, rr is the monthly rate of return, and nn is the number of months.

For lump-sum investments, the formula is

FV=C(1+r)tFV=C(1+r)t

Where CC is the initial Investment, rr is the annual rate of return, and t is the tenure in years.

JezzMoney's ELSS Return Calculator does the math for you, allowing you to quickly and effortlessly calculate your return on investment and make informed investment decisions.

Step-by-Step Guide to Using JezzMoney's ELSS Calculator

Choose Your Investment Mode: JezzMoney's ELSS Calculator allows you to decide whether to invest via SIP (monthly installments) or a one-time lump sum. Both options are available.

Enter Your Investment Details: Enter your monthly SIP amount or the lump sum investment value. For SIPs, specify the frequency and duration of your Investment.

Set the Investment Tenure: ELSS funds have a minimum lock-in period of three years; however, you can invest for a longer duration to earn a higher return. Input the desired investment tenure.

Provide the Expected Rate of Return: Based on historical ELSS performance, you can expect annual returns in the range of 12% to 16%. Enter your expected rate of return for accurate projections.

Calculate and Review Results: The ELSS Calculator from JezzMoney will display the estimated maturity value, total investment amount, and expected profit instantly upon clicking "Calculate." You will also see an estimate of the tax savings under Section 80C.

Compare and Plan: Use the calculator to compare various investment scenarios. Change the investment amount, investment tenure, or expected return to see the impact on your future corpus and tax savings.

Key Features of JezzMoney's ELSS Calculator

• User-Friendly Interface: The calculator is simple to use, regardless of a realtor's experience.

• Accurate Projections: Obtain a forecast of the resultant value of your investments and their tax reliefs.

• Flexible Inputs: Try out various investment sums, durations, and rates of return you expect.

• Goal Tracking: Define your financial objectives and track your progress toward achieving them.

• Tax Planning: Discover how much you can save on your taxes by investing in ELSS funds.

Why JezzMoney's ELSS Calculator is a Smart Choice

JezzMoney's ELSS Calculator is not merely an instrument, but a comprehensive platform for one's financial planning and investment management. Here are the reasons why it is unique:

• Advanced Technology: JezzMoney's calculations are powered by advanced algorithms for accuracy and speed.

• Customized Experience: JezzMoney, designed explicitly for Indian investors, provides personalized insights and recommendations.

• Support for Distributors: JezzMoney likewise provides mutual fund distributors with more sophisticated tools for client engagement and portfolio management.

Practical Example: Using JezzMoney's ELSS SIP Calculator

Let's say you want to invest ₹10,000 per month in an ELSS fund for 10 years, expecting an annual return of 12%. Using JezzMoney's ELSS SIP Calculator:

• Total Investment: ₹12,00,000

• Estimated Returns: Approximately ₹10,00,000 (varies based on compounding and market conditions)

• Total Corpus: Around ₹22,00,000

This simple example shows how disciplined SIP investing through an ELSS fund can help you build a significant corpus while enjoying tax benefits.

Tips for Maximizing Returns with ELSS Investments

• Start Early: The earlier you start, the more you benefit from compounding.

• Stay Invested for the Long Duration: ELSS funds are equity-oriented and perform best over more extended periods.

• Use the ELSS Calculator Regularly: track your progress and adjust your plan as your goals or circumstances change.

• Consult a Financial Advisor: While the calculator provides estimates, personalized advice can help you align your investments with your financial objectives.

Conclusion

Using JezzMoney's ELSS Calculator is a worthwhile investment. They help you plan your investments, consider the maximum return, and help you maximize your tax savings. These tools allow you to create an innovative investment plan, set achievable goals, and stay on track with your financial aims. Begin using JezzMoney's ELSS Calculator now. It's your first step to better, more rewarding investments!