A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals — typically monthly — rather than investing a lump sum at once. Over time, SIPs benefit from rupee-cost averaging (buying more units when prices are low and fewer when prices are high) and the power of compounding, making them one of the most popular ways to build long-term wealth in India.
This calculator uses the standard SIP future-value formula, which assumes your monthly contribution grows at your expected annual rate of return, compounded monthly. The result gives you an estimate of your total corpus at the end of your chosen investment period, along with a breakdown of how much you invested versus how much came from returns.
Keep in mind that mutual fund returns are market-linked and not guaranteed — the rate of return you enter is only an assumption for planning purposes, based on historical averages or your own expectations, and actual returns will vary depending on market performance and the specific fund you choose.
There is no guaranteed rate — many investors use a long-term historical average of 10-12% for equity funds as a planning assumption, but actual returns can be higher or lower depending on market conditions.
Only SIPs in ELSS (Equity Linked Savings Scheme) mutual funds qualify for deduction under Section 80C, up to the overall ₹1.5 lakh limit, and come with a 3-year lock-in.
Each SIP instalment is treated as a separate investment for capital gains purposes. Units held for more than 12 months qualify for equity LTCG treatment; units sold before 12 months are taxed as STCG.
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