SIP Calculator

Calculate the wealth you can accumulate through Systematic Investment Plans (SIP) in mutual funds.

₹5,000
₹500₹1,00,000
12%
1%30%
10Yr
1Yr40Yr
Total Investment
₹ 6,00,000
Estimated Returns
₹ 5,61,695
Total Value
₹ 11,61,695
Invested Amount
Est. Returns

Understanding the Systematic Investment Plans (SIP)

What is an SIP?

A Systematic Investment Plan (SIP) is a facility offered by mutual funds to investors, allowing them to invest a fixed amount of money at pre-defined regular intervals. It is one of the most disciplined ways to build long-term wealth, as it enforces saving habits and takes advantage of market volatility.

The Power of Rupee Cost Averaging

When you invest through an SIP, you buy more mutual fund units when the market is down (prices are low) and fewer units when the market is up (prices are high). Over time, this averages out the cost of your investments, protecting you from the risk of trying to time the market.

Example Scenario

If you invest just ₹5,000 every month for 20 years at an expected return of 12% p.a., your total investment of ₹12,00,000 will grow into a massive ₹49,95,740. You earn nearly ₹38 Lakhs purely in returns, showcasing the magical effect of compounding over long periods.

Frequently Asked Questions

Can I stop my SIP at any time?

Yes, mutual fund SIPs are entirely flexible. You can pause, stop, or increase your SIP amount at any time without paying any penalty.

Is the expected return rate guaranteed?

No. The return rate in a mutual fund depends entirely on market performance. While historical data suggests equity markets return 10-12% over the long term, these returns are not guaranteed.

What is a Step-Up SIP?

A Step-up SIP allows you to automatically increase your monthly investment amount every year (e.g., by 10%). This is highly recommended as your salary and income typically increase each year.