SIP Calculator

SIP (Systematic Investment Plan) is a disciplined approach to investing where you invest a fixed amount regularly in mutual funds. It leverages rupee cost averaging - buying more units when prices are low and fewer when high. This reduces the impact of market volatility and helps build wealth over time through compounding. You can start with as low as ₹500/month.

Step-Up SIP automatically increases your investment amount by a fixed percentage annually. If your income grows every year (salary increments), you should increase your SIP proportionally. A 10% annual step-up can significantly boost your final corpus - often by 50-100% more than a regular SIP over 15-20 years.

Historically, equity mutual funds in India have delivered 12-15% CAGR over long periods. Large-cap funds typically give 10-12%, multi-cap 12-14%, and small-cap can give 14-18% (with higher volatility). For conservative estimates, use 10-12%. Never expect guaranteed returns - past performance doesn't guarantee future results.

In rising markets, lumpsum gives better returns. In volatile/falling markets, SIP wins through rupee cost averaging. For salaried individuals, SIP is practical as you invest from monthly income. If you have a large sum, you can combine both - invest 50-60% as lumpsum and remaining via SIP over 6-12 months to balance risk.

For equity funds: Short-term gains (held <1 year) taxed at 15%. Long-term gains (held >1 year) above ₹1 lakh/year taxed at 10%. Each SIP installment is treated as a separate investment for tax purposes. ELSS funds offer tax deduction under Section 80C up to ₹1.5 lakh/year.