SIP Calculator

SIP — Systematic Investment Plan — is a way to invest a fixed amount in mutual funds at regular intervals, typically monthly. On a chosen date each month, the amount is auto-debited from your bank account and used to buy units of your chosen mutual fund. It enables rupee-cost averaging (buying more units when prices fall, fewer when they rise) and compounding over years.

Indian equity mutual funds have historically returned 11-14% CAGR over 10+ year periods. Debt funds return 6-8%. Hybrid funds fall in between at 8-11%. Always evaluate returns over at least 7-10 years — shorter windows are misleading because equity is volatile year-to-year.

A step-up SIP increases your monthly investment by a fixed percentage each year — typically 10%. Example: ₹10,000/month starting, growing to ₹11,000 in year 2, ₹12,100 in year 3. Over 20 years at 12% return, a 10% step-up SIP grows to ~₹1.55 crore vs ~₹1 crore for a flat SIP — 55% more corpus for moderately higher total investment.

To reach ₹1 crore in 20 years at 12% expected return, you need to invest about ₹10,100 per month. In 15 years, ₹20,000/month. In 10 years, ₹43,500/month. Start early — the 20-year person invests ₹24.2L total, the 10-year person invests ₹52.2L to reach the same corpus.

Yes. Most AMCs allow pausing SIPs for 3-6 months online. You can also stop permanently anytime — no penalties. However, stopping breaks compounding; try to continue even at a reduced amount during tight months.

Over full market cycles, both produce similar CAGR. SIP reduces timing risk — if you invest a lump sum just before a crash, your CAGR suffers for years. SIP smooths the entry. Rule: if you have surplus and markets are at fair valuation, a combination (30% lump sum, 70% through SIPs) tends to outperform pure-SIP at low risk premium.

No. SIPs are not inherently tax-advantaged except ELSS funds (which qualify for 80C, up to ₹1.5L deduction under old regime). Equity mutual fund gains held over 12 months are LTCG at 12.5% above ₹1.25L/year. Debt fund gains (post Apr 2023) are taxed at slab rate. Plan tax harvesting yearly to stay under the LTCG threshold.

Most AMCs allow SIPs starting at ₹500/month; some as low as ₹100/month for micro-SIPs. Don't wait to save more — start with whatever you can commit to; compounding rewards consistency over amount.

For 10+ year horizons: diversified equity (Nifty 50 Index or Flexi-cap). For 5-10 year goals: hybrid funds. For under 5 years: debt or liquid funds. Never put short-goal money in pure equity — volatility can hurt.

As long as the goal requires. The compounding magic happens in years 10-25 — the last 5 years of a 25-year SIP often produce more absolute wealth than the first 15 years combined. Stopping early is the #1 mistake SIP investors make.