SIP Return & Wealth Calculator
Plan your financial freedom with Systematic Investment Plans (SIP). Project maturity corpus with monthly compounding and annual step-up.
SIP Investment Parameters
Projected Wealth Growth
Yearly Wealth Projection Schedule
Monthly Compounded| Year | Cumulative Invested | Interest Growth | Future Value |
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How Systematic Investment Plans (SIP) Compound Wealth
A Systematic Investment Plan (SIP) allows investors to invest a fixed sum of money at regular monthly intervals in mutual funds. By investing consistently across market cycles, you benefit from Rupee Cost Averaging (buying more fund units when prices are low and fewer when high) and the exponential force of Compounding.
Standard SIP Future Value Formula
The maturity value of a fixed monthly SIP is computed using the future value of an annuity formula:
- M: Expected Total Maturity Corpus
- P: Monthly SIP Amount
- i: Monthly periodic interest rate (Annual Return / 12 / 100)
- n: Total number of monthly installments (Tenure in Years × 12)
The Power of Annual Step-Up SIP
As your salary and income increase each year, stepping up your monthly SIP by just 10% annually can more than double your final retirement corpus compared to a static investment amount over a 15-20 year period.
With 10% annual step-up, the final corpus grows to ₹48.9 Lakhs!
Historical Asset Class Returns in India (10-15 Year Horizon)
Long-Term Benchmarks| Mutual Fund Category | Average Historical CAGR | Risk Profile | Recommended Horizon |
|---|---|---|---|
| Nifty 50 Large Cap Index Funds | 11.5% – 13.0% | Moderate | 5+ Years |
| Flexi Cap & Multi Cap Active Funds | 13.0% – 15.0% | Moderate to High | 7+ Years |
| Mid Cap & Small Cap Equity Funds | 15.0% – 18.0% | High Volatility | 10+ Years |
| Hybrid / Balanced Advantage Funds | 10.0% – 12.0% | Conservative to Moderate | 3 to 5 Years |
Frequently Asked Questions (FAQs)
How are Mutual Fund Capital Gains Taxed (Budget 2024)?
As per Finance Act 2024, Long-Term Capital Gains (LTCG) above ₹1.25 Lakhs/year on equity funds are taxed at 12.5%. Short-Term Capital Gains (STCG) held under 12 months are taxed at 20%.
What happens if I miss a monthly SIP installment?
Missing a SIP payment does not attract mutual fund penalties or close your account. However, your bank may charge an ECS/NACH bounce fee. SIP resumes normally next month.
Can I pause, increase, or stop my SIP anytime?
Yes, open-ended mutual fund SIPs offer 100% liquidity. You can pause, step up, or cancel your mandate anytime online without exit penalties on existing accumulated units.