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Calculate the future value of your monthly Systematic Investment Plan (SIP) investments and see the power of compounding in action.
Total Maturity Value
Increasing your SIP by just 10% could grow your corpus to ₹16,87,163.
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 1 | ₹60,000 | +₹4,047 | ₹64,047 |
| 2 | ₹1,20,000 | +₹16,216 | ₹1,36,216 |
| 3 | ₹1,80,000 | +₹37,538 | ₹2,17,538 |
| 4 | ₹2,40,000 | +₹69,174 | ₹3,09,174 |
| 5 | ₹3,00,000 | +₹1,12,432 | ₹4,12,432 |
| 6 | ₹3,60,000 | +₹1,68,785 | ₹5,28,785 |
| 7 | ₹4,20,000 | +₹2,39,895 | ₹6,59,895 |
| 8 | ₹4,80,000 | +₹3,27,633 | ₹8,07,633 |
| 9 | ₹5,40,000 | +₹4,34,108 | ₹9,74,108 |
| 10 | ₹6,00,000 | +₹5,61,695 | ₹11,61,695 |
A Systematic Investment Plan (SIP) is a smart and hassle-free mode for investing money in mutual funds. SIP allows you to invest a fixed amount of money at regular intervals (monthly, quarterly, or semi-annually) in your chosen mutual fund scheme.
When you start an SIP, a fixed amount is debited from your bank account periodically and invested in a specific mutual fund. You are allocated units based on the current Net Asset Value (NAV) of the fund. Over time, as you continue to invest, the number of units accumulates, and the value of your investment grows based on the fund's performance.
Using our SIP calculator is simple and intuitive. Follow these steps to estimate your wealth:
The SIP returns are calculated using the Future Value (FV) formula for an annuity:
Where:
FV = Future Value (Maturity Amount)
P = Monthly Investment Amount
i = Monthly Interest Rate (Annual Rate / 12 / 100)
n = Total number of months (Years × 12)
While SIP allows you to invest small amounts regularly, a Lumpsum investment involves a one-time payment. SIP is generally preferred for its ability to mitigate market volatility through rupee cost averaging, whereas Lumpsum can be more profitable in a consistently rising market.
Returns from SIPs are subject to Capital Gains Tax. For Equity Mutual Funds:
| Feature | SIP (Mutual Funds) | Recurring Deposit (RD) | Fixed Deposit (FD) |
|---|---|---|---|
| Returns | Market-linked (Higher potential) | Fixed (Lower) | Fixed (Lower) |
| Risk | Moderate to High | Very Low | Very Low |
| Taxation | Capital Gains Tax | Taxed as per Slab Rate | Taxed as per Slab Rate |
Myth 1: SIP is only for small investors.
Fact: High Net-worth Individuals (HNIs) also use SIPs to invest large amounts systematically to avoid market timing risks.
Myth 2: You cannot change the SIP amount once started.
Fact: Most mutual funds allow you to increase (Step-up) or decrease your SIP amount at any time.
Myth 3: SIP is a separate product.
Fact: SIP is just a method of investing in a mutual fund, not a product itself.
"The best time to start an SIP was yesterday. The second best time is today. The key to wealth creation through SIP is not timing the market, but time in the market."