See how a fixed monthly investment grows over time with compounding. Works with any currency.
A Systematic Investment Plan (SIP) lets you invest a fixed amount into a mutual fund every month. Returns compound monthly using the formula FV = P × ((1 + r)n − 1) / r × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months.
The power of SIP comes from rupee cost averaging and compounding. When markets fall, your fixed investment buys more units; when they rise, you buy fewer — averaging your cost over time and reducing timing risk. Even modest monthly amounts grow substantially over long horizons: ₹5,000/month at 12% annualised return for 20 years grows to roughly ₹49 lakh, against a principal of just ₹12 lakh. The calculator assumes a constant annual return rate, which mutual funds don't guarantee — real returns fluctuate, and past performance is not a guarantee of future results. Use this as a planning guide, not a prediction.
A SIP (Systematic Investment Plan) is a method of investing a fixed sum regularly — typically monthly — into a mutual fund. It helps build wealth steadily by leveraging rupee cost averaging and the power of compounding.
SIP is generally better for salaried investors who cannot invest a large amount at once, and reduces timing risk. Lump sum can outperform SIP in a strongly rising market. For most investors, SIP is the safer, more disciplined approach.
Equity mutual funds in India have historically returned 10–14% annually over long periods, though returns vary widely by fund and market conditions. Debt funds typically return 6–8%. Past performance does not guarantee future results.
Yes. You can pause, stop, or increase a SIP at any time without a penalty in most mutual funds. Missed instalments do not attract charges, though they reduce your total corpus.