SIP Calculator

SIP Calculator

Calculate your Systematic Investment Plan returns and plan your wealth creation journey.

SIP Investment Details

₹
₹500₹1,00,000
%
1%30%
Years
1 Years30 Years

SIP Returns

Expected Amount
₹11,61,695
Total Investment
₹6,00,000
Estimated Returns
₹5,61,695

Investment Breakdown

48%
Returns
Invested
Returns
Total Investment₹6,00,000
0.0%
Estimated Returns₹5,61,695.382
0.0%
CAGR
12.00%
Monthly SIP
₹5,000

What is SIP?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly, quarterly, etc.) instead of investing a lump sum. SIP allows you to invest in a disciplined manner without worrying about market volatility and timing the market.

SIPs work on the principle of rupee cost averaging, where you buy more units when the market is down and fewer units when the market is up, thus averaging out your purchase cost over time.

Benefits of SIP

  • Disciplined investing habit
  • Rupee cost averaging benefits
  • Power of compounding
  • Flexibility to start small
  • No need to time the market
  • Long-term wealth creation

SIP Calculator FAQs

Common questions about SIP investments

SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. It helps in rupee cost averaging and harnesses the power of compounding for long-term wealth creation.
SIP involves regular small investments, reducing market timing risk through rupee cost averaging. Lump sum is a one-time large investment that can benefit from immediate market exposure but carries higher timing risk.
Simple interest is calculated only on the principal amount, while compound interest is calculated on both principal and accumulated interest. Compound interest grows exponentially over time, making it more powerful for long-term investments.
Step-up SIP allows you to increase your investment amount periodically (usually annually). This helps counter inflation and accelerates wealth creation as your income grows over time.
There is no upper limit to the amount you can invest in a SIP. The minimum amount that you can invest is ₹500 per month. You can invest any amount above this minimum based on your financial capacity and investment goals.
There is no maximum tenure limit for SIP investments. You can continue your SIP for as long as you want, even for decades. Many investors maintain SIPs for 20-30 years to build substantial wealth through the power of compounding.
SIPs and mutual funds are not the same. SIPs are merely a method of investing in mutual funds, the other method being a lump sum. SIP is a systematic approach to investing a fixed sum of money in mutual funds at regular intervals (weekly, monthly, or quarterly).
Yes, you can modify your SIP amount. Most mutual fund companies allow you to increase, decrease, or pause your SIP investments. You can also change the investment frequency or switch between different schemes. However, some modifications may require a cooling-off period.
No, SIPs are not limited to equity mutual funds only. You can invest in various types of mutual funds through SIP, including equity funds, debt funds, hybrid funds, index funds, and sectoral funds. The choice depends on your risk appetite and investment goals.
There are several types of SIPs available: Regular SIP (fixed amount), Step-up SIP (increasing amount), Flexible SIP (variable amount), Perpetual SIP (no end date), and Top-up SIP (additional investments). Each type serves different investment strategies and financial goals.
Yes, you can renew a SIP automatically. Most mutual fund companies provide auto-renewal options for your SIP investments. Companies also give you the option to cancel this auto-renew feature if you want to stop the SIP at the end of the current tenure.
Yes, mutual fund companies provide the option of pausing your SIP investments for a specified period. This feature is useful during financial difficulties or when you need to reallocate funds. You can typically pause SIPs for 1-6 months, depending on the fund house policies.
The SIP calculation formula is: M = P × ([1 + i]^n – 1 / i) × (1 + i), where M is the maturity amount, P is the monthly investment, i is the monthly interest rate, and n is the number of payments. This formula accounts for compound interest and the timing of investments.
Rupee cost averaging in SIP means you buy more units when prices are low and fewer units when prices are high. This reduces the average cost per unit over time and helps mitigate the impact of market volatility on your investments.
SIP investments in ELSS (Equity Linked Savings Scheme) funds offer tax benefits under Section 80C up to ₹1.5 lakh per year. Long-term capital gains from equity funds are tax-free up to ₹1 lakh, and gains above this are taxed at 10%. Debt fund gains are taxed as per your income tax slab.
SIP invests in market-linked instruments (mutual funds) with potential for higher returns but market risk. RD (Recurring Deposit) is a bank product with guaranteed returns but lower interest rates. SIP offers better long-term wealth creation potential, while RD provides capital protection.
Yes, you can start a SIP with just ₹500 per month. This is the minimum amount required by most mutual fund companies. Starting with small amounts helps build the investment habit and you can always increase the amount as your income grows.
If you miss a SIP payment, the fund house may charge a penalty or your SIP might be discontinued after 2-3 consecutive missed payments. However, you can usually restart your SIP or make up for missed payments. It's important to maintain sufficient balance in your bank account for SIP deductions.
Yes, you can have multiple SIPs in the same mutual fund scheme. This is useful if you want to invest different amounts at different frequencies or if you want to separate your investments for different financial goals.
The best time to start a SIP is now, regardless of market conditions. Since SIP works on rupee cost averaging, it benefits from market volatility. Starting early gives you more time for compound growth, which is the key to building substantial wealth through SIP investments.