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SIP Calculator

Our SIP plan calculator helps you estimate potential returns based on your SIP investment frequency - whether monthly, quarterly, or yearly. Know your SIP investment returns in seconds!

Check SIP returns of Schemes:
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Compound your wealth with SIP in Mutual Funds

*Investing in the securities market carries risk. Please do your own due diligence before investing.

Top Performing SIP Schemes

Scheme NameNAVAUM (in Cr.)Rating1Y Returns3Y Returns5Y ReturnsExp. Ratio

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What is a Systematic Investment Plan?

A Systematic Investment Plan (SIP) is a popular way to invest a fixed amount regularly into a mutual fund scheme of your choice. With an SIP, a predetermined sum is automatically deducted from your bank account each month and invested in your selected mutual funds.

Unlike a one-time lump sum investment, an SIP allows you to spread your investments over time. This means you don't need a large initial amount to begin investing. Additionally, regular SIP contributions encourage financial discipline by setting aside a consistent amount at set intervals.


How Exactly Does SIP Work?

When you invest in a mutual fund scheme via a Systematic Investment Plan (SIP), you buy a specific number of fund units based on your investment amount. With an SIP, you don't need to worry about market timing, as the strategy takes advantage of both rising and falling markets.

When the market is down, you acquire more units for the same investment amount, while fewer units are bought when the market is up. Because the Net Asset Value (NAV) of mutual funds is updated daily, the cost per unit varies with each SIP instalment. Over time, this gives you an average cost that tends to be lower, a benefit known as rupee cost averaging. This advantage isn’t available with lump sum investments.


Understanding SIP with an example

Let's say Mr. A is a 30-year-old software professional who has decided to put his money in mutual funds to create a corpus for his retirement. He plans to invest through an SIP of ₹5,000 every month. The formula for measuring the future value of her SIP is:

[ FV = P * {(1 + r)^n - 1} / {r} * (1 + r) ]

Where:

FV = Future Value

P = Investment Amount for Each Instalment (₹5,000)

r = Rate of Return Expected Annually (Assume 10%)

n = Number of Installments (Assume 10 years = 120 months)

Using this formula, Mr. A can get an estimate of what the future value of her investments will be, which is ₹10,32,000. It shows how her regular contributions grow with time. SIPs encourage regular investment and reduce market risks, and thus are preferred over other options in long-term investment plans.


How does a SIP Calculator Help?

SIPs are often considered a more advantageous investment method compared to making a lump sum investment. They promote financial discipline and help establish a regular savings habit that can pay off in the long run.

For this, the use of an SIP plan calculator can be very beneficial because it gives a rough idea of the returns that an investor is expected to achieve at the end of the investment period.

Here are some benefits of using Systematic Investment Plan calculator:

  • Helps you determine the amount to invest.
  • Shows the total amount you have invested and the maturity amount.
  • Provides an estimate of potential returns.

What are the Types of SIP Available?

When it comes to Systematic Investment Plans, there's no one-size-fits-all approach. SIPs offer various types, each designed to meet different investment goals and provide the flexibility to align with your personal needs. Here’s a breakdown of the different SIP options:


  • Fixed SIP: This SIP requires you to invest a fixed amount consistently.
  • Top-up SIP: Allows you to periodically increase your investment amount.
  • Flexible SIP: Adjust your investment amount based on your financial situation and goals.
  • Perpetual SIP: Continues indefinitely without a set end date.
  • Trigger SIP: You can invest in this SIP based on some pre-decided market conditions or triggers.
  • Systematic Withdrawal Plan (SWP): Receive regular payouts by withdrawing from your invested funds.
  • Flexible SWP: Vary the withdrawal amount across different installments.
  • Systematic Transfer Plan (STP): Move funds regularly from one mutual fund to another to optimize returns.

What is Goal Based SIP Investment?

Goal-oriented SIP investment is a method wherein an investor invests regular fixed sums in mutual funds with the motive to meet financial objectives such as buying a house, funding education, retirement etc. Unlike traditional SIPs which are generic in nature and aim for wealth accumulation, goal-based SIPs are designed to achieve predetermined goals by aligning the investing to the time horizon and risk appetite of each goal. This focused approach helps investors stay disciplined and on track, allowing them to monitor progress and make better adjustments as needed to achieve their goals.


SIP vs Lumpsum Investment

A Systematic Investment Plan enables you to invest a fixed amount of money at regular intervals, typically monthly, into mutual funds. A lumpsum investment involves putting in a large sum of money all at once. Let’s break it down and see how SIPs differ from lumpsum investments.

  • Investment Amount: SIP is about investing regularly with smaller amounts of money whereas lumpsum requires you to make a big one-time investment.
  • Market Timing: Since the entire amount is invested at once, lumpsum investments are subject to market risks. However, in SIP you invest over time and hence market volatility gets evened out.
  • Cost Averaging: SIP benefits from an approach called cost averaging. This means, that when the market is down, you get more units for the same amount of money and when the market is up, you get fewer units. With this, your average per unit cost will be over time.
  • Flexibility: You can start with a small amount in the case of SIP and gradually increase your investment according to your comfort level. In the case of a lump sum investment, you need to have a large amount at the beginning.
  • Time Horizon: SIP is for long-term investment goals because of its slow investment and lumpsum for the short-term goal where we need to invest large amounts in a one go.

SIP vs Step-Up SIP

Regular SIP is investing a fixed amount at regular intervals. While in Step Up SIP you can increase your investment every year or with any fixed interval. So, when you look at the definition, with Step-Up SIPs, you are able to increase your contribution year on year.

Here are a few points differentiating them both:

  • Investment Amount: In a regular SIP, the investment amount is fixed for the entire tenure of investment, while in a Step-Up SIP, the amount increases at regular intervals (say yearly).
  • Inflation Adjustment: Step-Up SIPs can really help you beat inflation as your investment amount increases over time helping you keep up with increased purchasing power.
  • Flexibility: While a regular SIP offers a fixed contribution, a Step-Up SIP allows you to customize the increase percentage or amount based on your income growth.
  • Suitability: A regular SIP is good for consistent, disciplined investing with a fixed income, while a Step-Up SIP is suitable for individuals expecting income increases over time.
  • Potential for Attractive Returns: By increasing contributions regularly, a Step-Up SIP can potentially generate a larger corpus compared to a standard SIP with the same initial investment amount.

Understanding SIP Returns for 10 Years

Monthly SIP of ₹5,000 at 15% CAGR:

YearAmount
Invested
Estimate
Returns
Maturity
Value
1st Year₹ 60,000₹ 5,106₹ 65,106
2nd Year₹ 60,000₹ 20,677₹ 1,40,677
3rd Year₹ 60,000₹ 48,397₹ 2,28,397
4th Year₹ 60,000₹ 90,219₹ 3,30,219
5th Year₹ 60,000₹ 1,48,408₹ 4,48,408
6th Year₹ 60,000₹ 2,25,598₹ 5,85,598
7th Year₹ 60,000₹ 3,24,841₹ 7,44,841
8th Year₹ 60,000₹ 4,49,683₹ 9,29,683
9th Year₹ 60,000₹ 6,04,239₹ 11,44,239
10th Year₹ 60,000₹ 7,93,286₹ 13,93,286

Understanding Lumpsum Returns for 10 Years

Lumpsum Investment of ₹ 100,000 at 15% CAGR:

YearAmount
Invested
Estimate
Returns
Maturity
Value
1st Year₹ 1,00,000₹ 15,000₹ 115,000
2nd Year-₹ 32,250₹ 1,32,250
3rd Year-₹ 52,088₹ 1,52,088
4th Year-₹ 74,901₹ 1,74,901
5th Year-₹ 1,01,136₹ 2,01,136
6th Year-₹ 1,31,306₹ 2,31,306
7th Year-₹ 1,66,002₹ 2,66,002
8th Year-₹ 2,66,002₹ 3,05,902
9th Year-₹ 2,51,788₹ 3,51,788
10th Year-₹ 3,04,556₹ 4,04,556

Understanding Step-Up SIP Returns for 10 Years

Monthly SIP of ₹5,000 at 15% CAGR with annual Step-Up at 10%:

YearAmount
Invested
Estimate
Returns
Maturity
Value
1st Year₹ 60,000₹ 5,106₹ 65,106
2nd Year₹ 66,000₹ 21,188₹ 1,47,188
3rd Year₹ 72,600₹ 51,207₹ 2,49,807
4th Year₹ 79,860₹ 97,951₹ 3,76,411
5th Year₹ 87,846₹ 1,65,936₹ 5,32,242
6th Year₹ 96,631₹ 2,59,718₹ 7,22,655
7th Year₹ 1,06,294₹ 3,84,933₹ 9,54,163
8th Year₹ 1,16,923₹ 5,48,269₹ 12,34,422
9th Year₹ 1,28,615₹ 7,57,652₹ 15,72,421
10th Year₹ 1,41,477₹ 10,22,464₹ 19,78,709

Relation of SIP with Stock Market

SIPs (Systematic Investment Plans) are a way of investing in the stock market indirectly by putting money into mutual funds. When you invest in mutual funds through SIPs, you're not buying individual stocks; instead, you are investing in a group of stocks, a sector, or even a whole index. This means your money is spread across many companies, reducing risk and providing diversification.

SIPs use the rupee cost averaging concept, which means you invest a fixed amount regularly, regardless of market conditions. This strategy buys more units when the market is down and fewer units when the market is up, helping to balance out the impact of market volatility over time.

It’s an approach designed for the long term, making investing more manageable and accessible for those who might not have a large sum to invest all at once or who prefer not to worry about timing the market perfectly.


Long-Term Wealth Creation with SIP

Systematic Investment Plans help you to create wealth in the long term through:

  • Compounding Interest: SIPs put your returns back in your investment, which increases the principal amount and interest earned on that amount, thus creating a snowball effect resulting in an exponential growth of your investment over a period.
  • Rupee Cost Averaging: By investing a fixed amount at regular intervals, SIPs ensure that you buy more units when markets are low and vice versa, thus averaging out the cost per unit of your investment over time.
  • Disciplined Investing: SIPs facilitate investing a fixed sum regularly. This helps inculcate the habit of regular saving and makes sure that investment decisions are not driven by market conditions or emotions.
  • Start Early: SIPs allow you to start investing with a small amount like ₹500 per month so you don't have to wait to accumulate a large sum of money.

Tax Saving with SIP

Systematic Investment Plans (SIPs) can be a good way to save on taxes and earn higher returns on your investments. SIPs in Equity Linked Savings Schemes (ELSS) are especially tax-efficient, as they fall under the Exempt, Exempt, Exempt (EEE) category. This means that the amount invested, the amount received on maturity, and the withdrawal amount are all tax-free.

Here are some benefits of investing in ELSS SIPs:

  • Tax Deductions: You are allowed a deduction of up to Rs 1.5 lakh per annum from taxable income for investing in ELSS via SIPs under Section 80(C) of the Income Tax Act, 1961.
  • Tax Saving: If you fall under the highest tax slab (30%), you can save almost Rs 45,000 p.a.
  • Long-term Wealth Creation: SIPs can help you create wealth over a long time.
  • Flexibility: Periodically you have an option to increase or decrease your investment amount based on your financial situation and goals.
  • Early Tax Planning: Starting SIP investments early in the fiscal year can help you build a substantial corpus and maximize tax savings.

Is SIP 100% Safe?

It is important to note that no investment, including SIP, is completely risk-free. SIPs allow you to invest a fixed amount regularly in mutual funds which are subject to market risks. The value of investments can go up or down depending on the performance of the underlying securities and there’s always a potential risk of loss in line with your investment. However, SIPs reduce some risks by investing over a period of time. This helps lower the impact of short-term market volatility and build wealth over the long term.

Though SIP comes with benefits such as rupee cost averaging and disciplined investing, it cannot make you completely immune from a volatile market. It simply encourages regular investing habit that allows you as an investor to stay focused on your financial goals irrespective of short-term market scaling downs. This improves your chances of better financial results in the long term but does not guarantee any returns on stock-market investments as such.


Factor to Consider Before Starting a SIP

Choosing the right SIP in India requires a thoughtful approach, considering several key factors to achieve optimal results. Here’s what to keep in mind:

  • Duration of SIP: Your minimum investment horizon should be 5 years so that you can weather various market cycles and realize your long-term financial objective.
  • Fund House Performance: Look at the fund house’s track record to ensure its managers have successfully navigated market ups and downs.
  • Asset Under Management (AUM): For first-time investors, selecting funds with a substantial AUM can offer stability and better management.
  • Set Investment Goals: Match your SIP to your specific financial objectives, selecting funds that fit your risk tolerance and long-term plans.
  • Fund Selection: Evaluate the historical performance of different SIP options to choose one that fits your investment strategy and risk profile.
  • Diversify Your Portfolio: Invest in different funds so that any erratic movement of a particular fund does not have an adverse effect on your investment and returns.
  • Regular Reviews: Periodically assess your SIPs and adjust them based on evolving financial goals and market conditions to stay on track for success.

What are the Benefits of SIP?

SIP is a smart choice with multiple benefits for investors who want to invest in Mutual Funds in a planned and disciplined way.

Here are its advantages:

  • Financial Discipline: SIPs require you to invest regularly and help you become financially disciplined. It is like a recurring deposit that helps to save every month and build a corpus without affecting your lifestyle.
  • Flexibility: With SIPs, you have the flexibility to adjust your investment amounts as needed, increasing or decreasing them at any time.
  • Convenience: SIPs offer a seamless investment experience. Once set up online, your investments will be automatically managed without the need for constant intervention.
  • Lower Risk: Lump sum investments may put your capital at greater risk. A SIP diversifies your investment over time and as a result, it lowers the risk to capital and helps you handle volatility in a better manner.

Who Should Invest in SIP?

A Systematic Investment Plan is ideal for those who value a disciplined and structured approach to investing, making it a great option for both beginners and experienced investors. For newcomers, SIP offers an easy way to start investing with small amounts and increase contributions as they gain confidence. Experienced investors use SIPs to manage volatility better because it helps them take advantage of bullish and bearish trends in a systematic way. No matter your risk tolerance or level of experience, SIP offers a flexible and accessible way to achieve a variety of financial goals over time.


Advantages of Starting an Early SIP

Investing in a SIP from a young age until you turn 45 can significantly boost your wealth due to the power of compounding. The earlier you start, the more time your investments have to grow and compound, leading to potentially higher returns. For instance, starting at 25 and investing consistently allows your investments to benefit from compound interest over a longer period of 20 years compared to starting later.

This early start not only helps in accumulating a substantial corpus but also cushions against market volatility as your investments have time to recover from any downturns. Hence, starting early with SIPs ensures maximization of return potential apart from securing your financial future in the long term.

Monthly SIP of ₹5,000 at 15% CAGR:

Started atTime
Period
Amount
Invested
Estimate
Returns
Maturity
Value
Maturity
Gains
25 Yrs20 Years₹ 12,00,000₹ 63,79,775₹ 75,79,775531.65%
30 Yrs15 Years₹ 9,00,000₹ 24,84,315₹ 33,84,315276.04%
35 Yrs10 Years₹ 6,00,000₹ 7,93,286₹ 13,93,286132.21%

Important Terms To Know Before Starting a SIP

SIP can be a lucrative way to invest in mutual funds over a period of time but before that let’s understand a few important terms.

  • NAV (Net Asset Value): The price per unit of a mutual fund, calculated daily. It is the scale to measure your investment.
  • Asset Allocation: This refers to the practice of dividing your investments among different kinds of asset classes like stocks, bonds etc., in order to balance the risk and reward.
  • Risk Profile: An assessment of your willingness and ability to take risks. It helps in choosing the right mutual fund for your SIP.
  • Lock-In Period: This is the duration for which you cannot withdraw your investment. Some funds such as ELSS (Equity Linked Savings Schemes) come with lock-in periods.
  • Expense Ratio: The fee charged by the mutual fund for managing your investment. It is expressed as a percentage of the fund’s average assets under management.
  • STP (Systematic Transfer Plan): This involves systematically transferring a portion of some sum of money from one fund to another fund regularly. It helps in rebalancing the portfolio.
  • SWP (Systematic Withdrawal Plan): It is an approach in which out of the mutual fund investment, a certain amount is retrieved periodically, thus providing income on a steady basis.

The Bottom Line

Systematic Investment Plans (SIPs) are a popular way to invest in mutual funds, allowing you to invest a fixed amount regularly. This approach helps in spreading your investments across market highs and lows, making it a disciplined and less risky way to build wealth over time.

Using a SIP return calculator is important because it helps you understand the potential returns based on your SIP amount and investment tenure. It gives you a clear picture of your financial future by providing quick and accurate estimates, enabling you to make informed decisions and set realistic expectations for your investments.


Frequently Asked Questions

No, Systematic Investment Plans (SIPs) are not risk-free. They invest in mutual funds, which can be subject to market volatility. The risk varies depending on the type of mutual fund chosen, such as equity, debt, or hybrid funds.

Yes, you can start a SIP with ₹1000 per month. SIPs are flexible and allow investors to begin with a small amount, making it accessible for various financial goals and budgets.

Yes, you can modify your SIP amount anytime. Most mutual funds allow you to increase or decrease your SIP contribution based on your financial goals and needs.

You should not skip the SIP installment as it impacts your investment. You should understand the implications of missing SIP installations and set a realistic monthly SIP so you can invest with ease.
Yes, you can pause your SIP temporarily. Contact your mutual fund provider to request a pause, which is typically allowed for a specific duration before resuming the plan.
Yes, you can withdraw your investments from a SIP at any time, subject to the mutual fund redemption policies. However, consider the potential impact on your long-term financial goals.
Returns from SIPs vary based on market performance and the mutual fund's investment strategy. Historical data shows that equity funds typically offer competitive returns, but they come with higher risk.
SIP returns are calculated based on the average of the invested amount over time, considering the Net Asset Value (NAV) of the mutual fund units bought at different intervals.

The SIP calculator uses the formula: [ FV = P * {(1 + r)^n - 1} / {r} * (1 + r) ]. Where (A) is the amount, (P) is the investment, (r) is the rate of return, and (n) is the number of installments.

No, SIP returns are not guaranteed. The performance depends on the underlying mutual fund's investment strategy and market conditions. Historical performance does not ensure future returns.
SIP tenure can vary but often ranges from 1 year to several decades, depending on an investor’s financial goals and the mutual fund’s offerings. Longer the investment duration, higher the returns.
Yes, SIPs can incur losses, especially if invested in high-risk funds like equity funds for the short-term. The value of investments depends on market conditions and fund performance.
Tax on SIPs depends on the mutual fund type. Equity funds have a capital gains tax of 20% for short-term and 12.50% for long-term gains above ₹1.25 lakh in a fiscal year. Debt funds follow different tax rules.
SIPs offer higher potential returns compared to Fixed Deposits (FDs) but come with higher risk. FD returns are fixed and low-risk, while SIP returns depend on market performance. Your choice depends on risk tolerance and investment goals.






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