💼 SIP Details

Monthly Investment ₹5,000

₹500₹50K₹1L

Monthly Amount (₹)

₹

Expected Annual Return 12%

1%15%30%

Return Rate (%)

Investment Period 10 Yrs

12040 Yrs

Period (Years)

📊 SIP Results

Invested Amount

—

Est. Returns

—

Maturity Value

—

Invested vs Returns

Year-wise Growth

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Enter SIP Details

Set your monthly investment amount, expected return rate, and tenure to see results.

Formula

How SIP Returns are Calculated

SIP uses the future value of an annuity formula

SIP Future Value Formula

M = P × [(1+r)ⁿ − 1] / r × (1+r)

Where:
M = Maturity amount
P = Monthly SIP amount
r = Monthly return rate (Annual rate ÷ 12 ÷ 100)
n = Total number of months (Years × 12)

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Power of Compounding

SIP grows exponentially because returns themselves earn returns. Starting early amplifies this effect dramatically — just 5 extra years can double your final corpus.

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Rupee Cost Averaging

Investing a fixed amount monthly means you buy more units when prices are low and fewer when high. This naturally averages out your purchase cost over time.

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SIP Best Practices

Start as early as possible
Increase SIP amount by 10% each year (Step-up SIP)
Stay invested through market downturns
Choose funds based on your risk tolerance

FAQ

Frequently Asked Questions

Common questions about SIP investments

What is the minimum SIP amount?

Most mutual funds allow SIPs starting from ₹500 per month. Some funds allow ₹100/month for specific micro-SIP plans. However, for meaningful corpus building, financial advisors recommend at least ₹1,000–₹5,000 per month based on your goals.

Is 12% annual return realistic for SIP?

12% is a commonly used benchmark for equity mutual funds in India based on long-term NIFTY 50 historical returns (15–18% over 20 years). Actual returns vary by fund category: large-cap ~10–12%, mid-cap ~12–15%, small-cap ~15–18% (with higher risk). Past returns don't guarantee future performance.

Can I pause or stop my SIP?

Yes. You can pause (suspend) SIP for 1–6 months or stop it entirely without any penalty. Your existing investment continues to grow. Most fund houses allow this through their online portal or mobile app.

What is Step-up SIP?

Step-up SIP (or top-up SIP) allows you to automatically increase your monthly contribution by a fixed amount or percentage each year, in line with income growth. Increasing SIP by 10% annually can dramatically increase your corpus.

📈 SIP Calculator

How SIP Returns are Calculated

Power of Compounding

Rupee Cost Averaging

SIP Best Practices

Frequently Asked Questions

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