Free SIP calculator for Equity, Debt, Hybrid, ELSS & Index Fund mutual fund investments. Plan your wealth with year-wise growth breakdown.
| Year | Invested | Returns | Total Value |
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SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. Instead of investing a large sum at once, you invest small amounts at regular intervals (usually monthly), which helps average out the cost of buying units and reduces the impact of market volatility.
The future value of SIP is calculated using the compound interest formula:
FV = P × [(1+r)n - 1] / r × (1+r)
Where P = monthly SIP amount, r = expected monthly rate of return (annual rate / 12 / 100), and n = total number of months. This formula accounts for the compounding effect of each monthly investment.
The ideal SIP amount depends on your financial goals, income, and expenses. A common guideline is to invest 20-30% of your monthly income. Use the calculator above to see how different SIP amounts grow over time. Even ₹5,000/month in equity funds at 12% can grow to over ₹23 lakh in 10 years.
Historical average returns vary by fund category: Equity funds (12-15% p.a.), Hybrid funds (9-12% p.a.), Debt funds (6-8% p.a.), and ELSS funds (12-15% p.a.). Past performance doesn't guarantee future returns. Market conditions, fund selection, and investment tenure all impact actual returns.
SIP is generally better for most investors as it averages out market volatility through rupee cost averaging. Lump sum investing can outperform SIP in a consistently rising market, but SIP reduces the risk of timing the market. For beginners, SIP is usually recommended.
Step-up SIP (also called Top-up SIP) automatically increases your SIP amount by a fixed percentage every year. For example, if you start with ₹10,000/month and set a 10% annual step-up, your SIP becomes ₹11,000 in year 2, ₹12,100 in year 3, and so on. This significantly boosts your corpus over the long term.
For most open-ended mutual funds, you can redeem your investment anytime. However, some funds have exit loads (usually 1% if redeemed within 1 year). ELSS funds have a mandatory 3-year lock-in period. It's best to stay invested for the long term for optimal returns.