SIP Calculator

What is a SIP and how does it work?

SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month. Each instalment buys units at the current NAV. Over time, you accumulate units — benefiting from rupee-cost averaging (buying more units when prices are low and fewer when prices are high).

What return can I expect from a SIP in India?

Equity mutual fund SIPs have historically delivered 12–15% CAGR over 10+ year periods. Large-cap funds: 10–12%, Mid-cap funds: 13–16%, Small-cap funds: 15–20% (with higher volatility). Debt fund SIPs typically return 6–8%. Our calculator uses your expected return as input.

What is the minimum SIP amount?

Most mutual funds allow SIPs starting from ₹100–500/month. Popular funds like HDFC Flexi Cap, ICICI Pru Bluechip, and Axis Bluechip have ₹500 minimum SIP. Some funds like DSP Midcap allow ₹100/month via certain platforms.

Is SIP better than lump sum investment?

SIP is generally better for regular salaried individuals as it averages out the cost of investment over time (rupee-cost averaging). Lump sum is better when markets are at a significant low and you have a large sum ready to invest. For most investors, SIP is the more disciplined and lower-risk approach.

Are SIP returns taxable in India?

Yes. For equity mutual funds: STCG (held < 1 year) is taxed at 15%. LTCG (held > 1 year) above ₹1 lakh per year is taxed at 10%. Each SIP instalment has its own purchase date — when you redeem, units purchased over 1 year ago are treated as long-term. ELSS SIP investments qualify for 80C deduction up to ₹1.5 lakh/year.

What is the power of compounding in SIP?

Compounding means your returns generate further returns. A ₹10,000/month SIP at 12% for 20 years grows to ₹98.9 lakhs — from just ₹24 lakhs invested. The last 5 years of a 20-year SIP generate more wealth than the first 15 years combined. Starting early is the single biggest advantage in SIP investing.