SIP Mutual Fund Calculator
Calculate returns on Systematic Investment Plans (SIP) for mutual funds
SIP Investment Results
Total Investment
₹600,000
Total Returns
₹561,695
Maturity Amount
₹1,161,695
Effective Annual Return
6.83%
Wealth Multiplier
1.94x
Investment Breakdown
💡 SIP Investment Tips
- • Start early to benefit from compound interest
- • Stay invested for long-term to maximize returns
- • Consider increasing SIP amount with salary hikes
- • Diversify across different mutual fund categories
- • Review and rebalance your portfolio annually
Understanding SIP (Systematic Investment Plan)
What is SIP?
A Systematic Investment Plan (SIP) is an investment strategy that allows you to invest a fixed amount regularly in mutual funds. Instead of investing a lump sum amount, SIP enables you to invest small amounts periodically (monthly, quarterly, or yearly), making it an ideal investment option for beginners and those with limited capital.
SIP works on the principle of rupee cost averaging, which means you buy more units when prices are low and fewer units when prices are high. This strategy helps reduce the average cost per unit over time and minimizes the impact of market volatility on your investment.
Benefits of SIP Investment
💰 Affordability
Start with as little as ₹500 per month. SIP makes mutual fund investment accessible to everyone, regardless of their income level.
📈 Rupee Cost Averaging
Automatically buy more units when prices are low and fewer when prices are high, reducing average cost over time.
⚡ Disciplined Investing
Creates a habit of regular investing and helps achieve long-term financial goals through consistent contributions.
🎯 Compound Interest
Benefit from the power of compounding, where your returns generate additional returns over the long term.
How SIP Calculator Works
Our SIP calculator uses the compound interest formula to calculate your investment returns. The formula considers:
- Monthly Investment: The amount you invest every month (₹500 to ₹1,00,000+)
- Expected Return: Annual rate of return (typically 8-15% for equity funds)
- Investment Period: Duration of your SIP (1-30 years)
- Frequency: How often you invest (monthly, quarterly, yearly)
The calculator shows you the total amount invested, total returns earned, and the final maturity amount. It also displays the effective annual return and wealth multiplier to help you understand the power of compounding.
SIP vs Lump Sum Investment
✅ SIP Advantages
- • Lower initial investment requirement
- • Reduces market timing risk
- • Disciplined approach to investing
- • Better for volatile markets
- • Easier to maintain long-term
💰 Lump Sum Advantages
- • Higher potential returns in bull markets
- • Immediate full investment exposure
- • Lower transaction costs
- • Simpler to track and manage
- • Better for large windfalls
SIP Investment Strategy Tips
🎯 Start Early
The earlier you start SIP, the more time your money has to compound. Even a small monthly investment of ₹5,000 for 20 years can grow to ₹30+ lakhs with 12% returns.
📈 Increase SIP Amount
Consider increasing your SIP amount annually with salary hikes. A 10% annual increase in SIP amount can significantly boost your final corpus.
🔄 Stay Invested
Don't stop SIP during market downturns. Continue investing as market corrections provide opportunities to buy units at lower prices.
Tax Benefits of SIP
ELSS Funds
SIP in ELSS funds qualifies for ₹1.5 lakh deduction under Section 80C
Long-term Gains
Equity fund gains held for 1+ years are taxed at 10% (LTCG)
Tax Efficiency
SIP helps in tax-efficient wealth creation over the long term