SIP (Systematic Investment Plan) is a way to invest a fixed amount in mutual funds every month, allowing you to benefit from rupee cost averaging and compounding.

What is a realistic SIP return rate?

Historically, equity mutual funds in India have delivered 12–15% annual returns over 10+ year periods, though past performance doesn't guarantee future returns.

Can I increase my SIP amount later?

Yes, you can start a new SIP or use a step-up SIP feature offered by most AMCs to increase your investment amount annually.

What is the minimum SIP amount?

Most mutual funds allow SIP with as little as ₹500 per month. Some funds accept even ₹100/month.

Is SIP better than lumpsum investment?

SIP is generally better for salaried investors as it reduces timing risk through rupee cost averaging. Lumpsum works well when markets are at significant lows.

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SIP Calculator

Calculate returns on your Systematic Investment Plan with year-by-year growth.

Monthly SIP Amount

₹500₹5.00 L

Expected Return (% p.a.)

4.0%25.0%

Investment Period (years)

1 yr50 yrs

Future Value

₹50.46 L

Total Invested

₹18.00 L

Wealth Gained

₹32.46 L

180.3% absolute returnon ₹18,00,000 invested

Investment Growth Over Time

About the SIP Calculator

A SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds every month. Instead of timing the market, you invest regularly and benefit from rupee cost averaging - buying more units when prices are low and fewer when prices are high. Over long periods, this disciplined approach combined with compounding creates significant wealth.

SIP Future Value Formula

FV = P × ((1 + r)ⁿ − 1) / r × (1 + r)

P = Monthly SIP amount · r = Monthly return rate (annual rate ÷ 12 ÷ 100) · n = Total months invested

Worked Example

₹5,000/month SIP for 15 years at 12% annual returns

Monthly Investment:₹5,000

Expected Return:12% p.a.

Duration:15 years

Total invested ≈ ₹9 lakh · Estimated corpus ≈ ₹25.2 lakh · Wealth gained ≈ ₹16.2 lakh

Tips & Insights

1
Start early - ₹5,000/month for 30 years creates 3x more wealth than starting 10 years later.
2
Step-up your SIP by 10% each year to match salary hikes and dramatically boost your corpus.
3
Equity mutual funds have historically returned 12–15% over 10+ year periods in India.
4
Don't pause SIPs during market downturns - buying at lower NAVs improves your average cost.
5
Use the XIRR method to calculate your actual SIP returns, not just annualized returns.

Why this matters for you

SIPs have democratized wealth creation for salaried Indians. With as little as ₹500/month, anyone can build a significant corpus over time. The power of compounding means that starting at 25 vs 35 can mean a difference of ₹1 crore or more at retirement.