SIP Calculator

Plan your investments and see your wealth grow over time.

Invested Amount ₹ 12,00,000
Est. Returns ₹ 11,20,169
Total Value ₹ 23,20,169

Year-wise Projection

Year Invested Amount Interest Earned Year-End Value

Understanding SIPs

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount of money at regular intervals (usually monthly). It's a disciplined approach to investing that helps you build wealth over the long term, bit by bit, without needing a large lump sum amount to start.

The Power of Compounding & Rupee Cost Averaging

SIPs are powerful because they leverage two key principles. Compounding means you earn returns not just on your investment, but also on the returns themselves. Rupee Cost Averaging means you buy more units when the market is low and fewer units when it's high, averaging out your purchase cost over time and reducing risk.

Frequently Asked Questions (FAQ)

A SIP involves investing a fixed amount regularly over time, which helps in averaging out the purchase cost. A lump sum investment is a one-time, large investment. SIPs are generally considered less risky and are ideal for salaried individuals, while lump sum investments require good market timing.

This calculator uses the standard future value of an annuity formula to project the potential returns. It assumes that your investments are compounded monthly. Please note that the "Expected Return Rate" is an assumption, and actual market returns can vary. This tool is for illustrative purposes only.

While a higher return rate leads to more wealth, it usually comes with higher risk. It's important to choose investments that match your risk tolerance. Diversifying your investments across different asset classes is a common strategy to balance risk and reward.