SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps build wealth through rupee cost averaging and compounding.

How is SIP return calculated?

SIP returns are calculated using the formula: M = P × ({(1+r)^n - 1} / r) × (1+r), where P is monthly investment, r is monthly rate of return, and n is number of months.

📈 SIP Calculator

Calculate your SIP (Systematic Investment Plan) returns. Find out how much your monthly mutual fund investment will grow over time with the power of compounding.

SIP Investment Calculator

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SIP vs Lump Sum Comparison

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Frequently Asked Questions

What is SIP in mutual funds?

SIP (Systematic Investment Plan) allows you to invest a fixed amount every month in a mutual fund. Instead of investing a large sum at once, you invest regularly, benefiting from rupee cost averaging — buying more units when prices are low and fewer when high.

Is 12% return realistic for SIP?

Over long periods (10+ years), large-cap equity mutual funds in India have historically delivered 10–14% CAGR. 12% is commonly used as a conservative benchmark for long-term SIP planning. Actual returns vary based on fund selection and market conditions.

What is the minimum SIP amount?

Most mutual funds allow SIP starting from ₹100 to ₹500 per month. Some platforms like Groww, Zerodha Coin, and Paytm Money offer SIPs from ₹100/month.

How does SIP beat inflation?

If inflation is 6% and your SIP earns 12%, your real return is approximately 6%. Equity mutual funds have historically beaten inflation over long periods, making SIP one of the best wealth creation tools for salaried individuals.