Calculate the future value of your Systematic Investment Plan and plan for long-term wealth creation
Invested Amount
₹6,00,000
Estimated Returns
₹5,40,358
Total Value
₹11,40,358
A Systematic Investment Plan (SIP) is an investment method offered by mutual funds where investors can invest small amounts periodically (typically monthly) instead of lump sum amounts. SIPs help investors benefit from rupee-cost averaging and the power of compounding while maintaining financial discipline.
SIPs allow you to buy more units when prices are low and fewer when prices are high, averaging out your purchase cost over time.
With SIPs, your returns earn further returns, creating a snowball effect that grows your wealth significantly over long periods.
SIPs promote regular investing habits, helping you stay committed to your financial goals regardless of market conditions.
You can begin investing with as little as ₹500 per month, making it accessible for investors of all income levels.
Regular investments help avoid the challenges of timing the market perfectly, reducing investment risk.
SIPs create a disciplined approach to investing, helping you stay invested through market ups and downs.
SIPs make it easier to align your investments with specific financial goals like retirement, education, or home purchase.
A SIP calculator uses the compound interest formula to estimate the future value of your investments. It considers your monthly investment amount, expected rate of return, and investment tenure to calculate the potential maturity amount. The formula used is M = P ({{1 + i}}^n - 1) / i) × (1 + i), where M is the maturity value, P is the monthly investment amount, i is the monthly interest rate (annual rate divided by 12), and n is the total number of months.
The minimum SIP amount varies from one mutual fund to another, but typically, you can start a SIP with as low as ₹500 per month. Some funds may have a higher minimum amount requirement of ₹1,000 or more. The low entry barrier makes SIPs accessible to investors with varying financial capabilities.
Yes, most mutual funds offer flexibility with SIPs. You can increase or decrease your monthly SIP amount, pause it temporarily, or even stop it altogether based on your financial situation. However, the specific terms and conditions may vary across fund houses, so it's advisable to check with your mutual fund provider before making changes.
Neither SIP nor lump sum is inherently better—both have their advantages depending on market conditions and investor preferences. SIPs work better in volatile or declining markets due to rupee-cost averaging, while lump sum investments may outperform in consistently rising markets. SIPs are suitable for regular income earners who want to invest disciplined amounts periodically, while lump sum investments are ideal if you have a large amount available at once.
The taxation of SIP returns depends on the type of mutual fund and holding period. For equity mutual funds (funds with more than 65% equity exposure), gains are considered as long-term capital gains (LTCG) if held for more than 1 year and taxed at 10% for gains exceeding ₹1 lakh per financial year. Short-term capital gains (STCG) are taxed at 15%. For debt funds, gains are considered LTCG if held for more than 3 years and taxed at 20% with indexation benefits. STCG from debt funds are added to your income and taxed as per your income tax slab.
A Step-up SIP (also known as Top-up SIP) is a feature that allows you to increase your SIP investment amount periodically. For example, you can start with ₹5,000 monthly and increase it by 10% every year. This aligns with your growing income and helps accelerate your wealth creation. Step-up SIPs are particularly useful for long-term goals where you want your investments to keep pace with inflation and your increasing earning capacity.
No, SIP returns are not guaranteed as they depend on market performance. The expected returns displayed in a SIP calculator are projections based on historical data or assumed rates of return. Actual returns may vary based on market conditions, fund performance, and economic factors. However, long-term SIPs generally tend to mitigate market volatility and have historically delivered competitive returns compared to many other investment avenues.
This SIP calculator is for illustrative purposes only. The calculated values are based on the information provided by you and the assumed rate of return. Actual returns may vary depending on market conditions, fund performance, and other factors. The calculations do not account for inflation, taxes, or fund management fees. This tool should not be considered as investment advice or a guarantee of future returns. Past performance is not indicative of future results. Please consult with a financial advisor before making any investment decisions.