SIP Calculator

Systematic Investment Plan (SIP) allows you to invest a fixed amount in mutual funds every month. It ensures disciplined investing, reduces timing risk through rupee cost averaging, and leverages compounding over time. SIPs can be started with small amounts, making them accessible for beginners. They offer flexibility to modify the investment amount, pause or stop contributions, and are ideal for long-term wealth creation.

The SIP corpus is calculated using the formula: Future Value = P × [(1 + r/n)^(n×t) - 1] × (1 + r/n)/ (r/n), where P = monthly investment, r = expected annual return, n = compounding frequency (12 for monthly), and t = tenure in years. This considers compounding, so even small monthly investments grow substantially over the long term.

Yes, SIPs can be stopped or paused at any time, depending on the mutual fund provider. However, stopping early may reduce the expected corpus and disrupt compounding. It’s important to plan investments according to your financial goals and liquidity needs to avoid interrupting long-term growth.

SIP itself is a method of investing and not a product. The safety depends on the mutual fund chosen. Equity funds are market-linked and can be volatile, whereas debt or hybrid funds are more stable. SIP helps mitigate market volatility by investing regularly over time, but investors should choose funds aligned with their risk profile.

Rupee cost averaging is the practice of investing a fixed amount regularly, buying more units when prices are low and fewer when prices are high. This reduces the average cost per unit over time, minimizes timing risk, and is a key benefit of SIP investing for long-term wealth creation.

Yes, SIP returns depend on the underlying mutual fund type. Equity funds held for more than 1 year are subject to long-term capital gains tax at 10% over ₹1 lakh exemption. Debt funds held over 3 years are long-term capital gains at 20% with indexation. Short-term capital gains on equity funds (less than 1 year) are taxed at 15%. Planning taxes helps maximize net returns.

Yes, SIP amount can be increased or decreased as per your financial situation. Increasing the monthly investment boosts the maturity corpus and accelerates wealth creation. Many fund houses provide step-up SIP options where the contribution automatically increases annually.

Long-term investment horizon is recommended for SIPs to benefit from compounding and market growth. Typically, a minimum of 3–5 years is suggested, but 10–20 years can produce significant wealth. Staying invested during market fluctuations is key to maximizing returns.