SIP Calculator

Medium Risk
₹10,000
10 Years
12%
Total Investment
₹12,00,000
Est. Returns
₹9,20,000
Total Value
₹21,20,000
Real Returns (After Inflation)
₹15,80,000
Investment vs Returns
Yearly Projection

What is SIP?

A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds. It allows you to invest a fixed amount regularly (monthly, quarterly, etc.) in your chosen mutual fund scheme.

How SIP Works

When you invest through SIP, you purchase units of a mutual fund scheme at the prevailing Net Asset Value (NAV). The number of units you get depends on the NAV on the investment date. Over time, you accumulate units regardless of market fluctuations, benefiting from rupee cost averaging.

Who Should Invest

SIP is ideal for:

  • Salaried individuals with regular income
  • Investors looking to create long-term wealth
  • Those who want to avoid timing the market
  • Beginners who are new to equity markets

Benefits of SIP

  • Disciplined Investing: Encourages regular investing habits
  • Rupee Cost Averaging: Buy more units when prices are low and fewer when prices are high
  • Power of Compounding: Earn returns on your returns over the long term
  • Flexibility: Start with as low as ₹500 per month
  • Convenience: Auto-debit facility available
  • Tax Benefits: ELSS funds offer tax deductions under Section 80C
What is the minimum amount for SIP?
You can start a SIP with as low as ₹500 per month for most mutual fund schemes. Some funds may have a higher minimum investment requirement.
Can I stop my SIP anytime?
Yes, you can stop your SIP anytime by informing your fund house or through your online account. There are no penalties for stopping a SIP.
Is SIP better than lump sum investment?
SIP helps in averaging out market volatility through rupee cost averaging. For most investors, SIP is a better approach as it doesn’t require market timing and instills financial discipline.
Are SIP returns guaranteed?
No, SIP returns are not guaranteed as they are subject to market risks. The returns depend on the performance of the underlying mutual fund scheme.
How are SIP returns taxed?
Returns from equity mutual funds have no tax if redeemed after a year of investment. If redeemed before a year, you pay 15% tax on gains. Debt mutual funds are taxed at 20% with indexation if redeemed after 3 years.