What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. It builds discipline, averages out market ups and downs (rupee-cost averaging) and harnesses compounding over the long term.
SIP formula
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P = monthly investment
- i = monthly return (annual rate ÷ 12 ÷ 100)
- n = number of months
Example: ₹5,000 a month for 10 years at 12% grows to about ₹11.6 lakh on an investment of ₹6 lakh.
The power of step-up
Increasing your SIP by just 10% every year can nearly double your final corpus over 20 years compared with a flat SIP. Try it with the step-up slider.
Important
Mutual fund returns are market-linked and not guaranteed. Equity funds have historically delivered 10–14% over long periods, debt funds 6–8%. Use this calculator for planning and consult a SEBI-registered advisor before investing.