SIP Calculator

SIP is a method of investing a fixed amount regularly — usually monthly — into a mutual fund. Instead of putting in a lump sum, you automate a small installment (as low as ₹100–₹500) that gets auto-debited from your bank and used to buy mutual fund units at the current market price. It builds wealth gradually through disciplined investing and market averaging.

SIP stands for Systematic Investment Plan — a mutual fund investment method introduced in India in the 1990s. Today it is the most popular way retail investors access mutual funds, with over ₹25,000 crore flowing in monthly (AMFI data, 2026).

You choose an amount, a date, and a fund. The bank auto-debits the amount on that date every month, and the fund house credits units to your account at that day's NAV. Over time, you accumulate units bought at different prices, and the combination of rupee cost averaging and compounding grows your wealth without requiring market timing.

NAV (Net Asset Value) is the price of one mutual fund unit on a given day. Your SIP amount is converted into units based on that day's NAV. For example, a ₹5,000 SIP at NAV ₹100 buys 50 units; if NAV drops to ₹80, the next installment buys 62.5 units — more units for the same amount.

Most platforms allow SIPs starting from ₹100 per month, though some fund houses still require ₹500 or ₹1,000 as a minimum. Groww, Zerodha Coin, Paytm Money, ET Money, and Kuvera all support ₹100 SIPs as of 2026. There is no upper limit — you can invest any amount monthly.

SIP builds wealth through two powerful forces: compounding and rupee cost averaging — without requiring market timing skill. For example, ₹5,000 per month at 12% return for 15 years grows to ~₹25 lakh (₹9 lakh invested, ₹16 lakh as returns). Start early, stay consistent, and the results compound significantly over decades.

For salaried individuals with monthly income, SIP is usually better — it fits cash flow and reduces timing risk. Lumpsum investing can outperform SIP when markets are clearly undervalued (after a 20%+ correction), but requires discipline and conviction. For most retail investors, SIP is the safer and more practical choice.

SIP itself is just a method — the safety depends on the underlying mutual fund. Equity SIPs carry market risk but lower it over long horizons. Beginners should start with large-cap index funds or aggressive hybrid funds (65–80% equity). These give reasonable growth with reduced volatility compared to mid/small-cap funds.

Yes — SIP is the most effective retirement tool for salaried Indians. A ₹10,000 per month SIP started at age 30, compounded at 12%, grows to ~₹3.5 crore by age 60. A step-up SIP increasing 10% annually can grow the same to ~₹7 crore. Start early and increase with salary.

Anyone with a PAN, bank account, and a long-term financial goal. Ideal for salaried employees, homemakers with savings, students, freelancers, and NRIs (via NRE/NRO accounts). Especially suited for people who want to avoid market timing and build wealth over 7–20 years.

Yes, anyone above 18 with a PAN card and bank account can start a SIP. Starting a ₹500 monthly SIP at age 22 and increasing it with income over 30 years can build a corpus of several crores. The earliest years of investing are the most valuable due to compounding.

Yes. A homemaker needs only a PAN card, Aadhaar, and a bank account in their name. Spouses can transfer money, but the SIP account must be owned by the homemaker. This is a smart way to build independent financial security within the household.

For senior citizens with existing corpus, a SWP is typically more useful than a SIP. SWP withdraws a fixed monthly amount from a mutual fund for regular income. If a senior has fresh money to invest, a conservative hybrid or debt SIP can work — but large equity SIP allocations carry too much volatility for income-focused needs.

Five steps: complete KYC (PAN + Aadhaar), pick a platform (Groww, Zerodha Coin, Paytm Money, ET Money), select a fund, set amount + SIP date, and authorize the e-mandate for auto-debit. The KYC is a one-time process valid across all fund houses. The e-mandate authorizes your bank to auto-debit on the chosen date. Entire process takes 10–15 minutes. Your first installment triggers on the next SIP date (typically 30 days later).

Three main options: directly on the fund house (AMC) website, via third-party apps (Groww, Zerodha Coin, Paytm Money, ET Money, Kuvera), or through a SEBI-registered financial advisor. Direct plans via AMC or direct-only apps have lower expense ratios (0.5–1% less) than regular plans — meaningful over 10+ years.

There is no objectively "best" SIP date — over long horizons, the date chosen has minimal impact on final corpus. Pick a date 2–3 days after your salary credits (usually 3rd–7th of the month) so funds are available. Spreading SIPs across 2–3 dates within a month slightly smooths averaging, but the difference is under 0.5% over 10 years.

Start with your risk tolerance and time horizon. Conservative (5–7 years): large-cap or index funds (~11–13% returns). Moderate (7–10 years): flexi-cap or aggressive hybrid (~12–14%). Aggressive (10+ years): mid-cap and small-cap funds (~14–18% but volatile). Check 5- and 10-year returns, consistency, and expense ratio — never just past 1-year returns.

Six main types: Regular, Step-Up, Flexi, Perpetual, Trigger, and Multi SIP. Regular (fixed amount) is most common. Step-up (auto-increases annually) is fastest-growing. Perpetual (no end date) is now the default in most apps. Trigger and Flexi are advanced variants for specific use cases.

A step-up SIP increases your monthly investment by a fixed percentage (typically 10%) every year. Example: ₹5,000/month growing 10% annually becomes ₹12,970 in year 10 and ₹33,640 in year 20. A step-up SIP builds 30–50% larger corpus than a flat SIP over 20 years — perfect for those with rising salaries.

An ELSS (Equity Linked Savings Scheme) SIP invests in a tax-saving mutual fund eligible for Section 80C deduction up to ₹1.5 lakh per year. ELSS has a 3-year lock-in — the shortest among 80C options like PPF (15 years), NSC (5 years), tax-saving FDs (5 years). Market-linked returns, historically 12–15% CAGR.

A Flexi SIP lets you skip, pause, or vary the monthly amount based on your cash flow. Useful for freelancers, business owners, or anyone with irregular income. Not all fund houses offer this — check the specific fund's rules before assuming flexibility.

A perpetual SIP has no fixed end date — it runs until you explicitly cancel it. This is now the default option in most apps. Ideal for long-term goals like retirement, where you want to avoid the hassle of renewing the SIP every 5 or 10 years.

Expected long-term returns depend on fund type: equity funds 10–15%, debt funds 6–8%, hybrid funds 8–11%, gold funds 8–10%. These are historical averages over 10+ years — not guaranteed. Short-term returns (1–3 years) can swing wildly, including negative years. Equity SIPs need 7+ year horizons to smooth out market cycles.

SIP returns are measured using XIRR (Extended Internal Rate of Return) because every installment is invested for a different duration. Simple average or CAGR gives misleading numbers for SIPs. XIRR accounts for each cash flow's timing and gives the annualized return of the overall investment journey.

A SIP calculator estimates the future value of your SIP given three inputs: monthly amount, tenure, and expected return. Enter ₹5,000/month, 15 years, 12% — it shows ₹25 lakh final value (₹9 lakh invested, ₹16 lakh as returns). Useful for goal planning, not a guarantee — actual returns depend on market performance.

Use the Rule of 72 — divide 72 by expected return. At 12%, a SIP (or any investment) doubles in ~6 years. At 15%, it doubles in ~4.8 years. For SIPs specifically, since money is invested gradually, the "doubling" is a rough approximation — XIRR gives the precise figure.

Yes — SIP returns are taxed as capital gains when you redeem units. For equity funds: STCG (under 1 year) = 20%, LTCG (over 1 year) = 12.5% above ₹1.25 lakh/year. For debt funds: all gains taxed at your slab rate (indexation benefit removed from April 2023). Every SIP installment has its own holding period for tax purposes.

Only ELSS SIPs qualify for Section 80C deduction — regular equity or debt SIPs do not. ELSS gives up to ₹1.5 lakh 80C deduction (Old Regime only) with a 3-year lock-in. Even within ELSS, only the principal amount invested qualifies — gains are still taxed as equity LTCG.

No tax until you redeem (sell) units. As long as you hold the SIP, there is zero tax liability — even if the fund value has risen significantly. Tax is triggered only on redemption, based on the holding period of each specific installment. This "tax deferral" is one of the hidden advantages of mutual funds over FDs.

SIP is a method — the "safety" is determined by the underlying fund. Equity SIPs carry market risk (can lose 30–40% in a bad year) but recover over time. Debt SIPs are lower risk but also lower return. The biggest safety concern is NOT SIP itself — it's stopping SIP during market falls, which locks in losses.

Yes, in the short term (1–3 years) you can see negative returns. Over 7+ years in equity funds, historical data shows 95%+ chance of positive returns. Over 10+ years, there has been no Indian 10-year equity SIP that ended with a loss. Time horizon is the single biggest determinant of SIP outcome.

No — market crashes are the best time to continue your SIP. Falling NAVs mean each installment buys more units, lowering your average cost significantly. Investors who stopped during COVID (March 2020) missed ~90% recovery in 18 months. Stopping during a crash is how most retail investors lose money.

Equity SIPs work best over 10+ years; 5–7 years is the minimum to smooth market cycles. For specific goals, align tenure: retirement (20–30 years), child's education (10–15 years), home down payment (5–7 years). Stopping a SIP in year 3 or 5 often leaves money on the table because compounding kicks in strongly after year 7.

Stop only when your goal is achieved or your financial situation permanently changes — never out of fear during a market correction. If you are close to your goal (2–3 years away), consider moving from equity to debt via STP to lock in gains. Don't stop SIPs due to short-term cash flow issues; pause instead.

Rule of thumb: invest 20–30% of monthly income. Start lower if that feels aggressive — even ₹500/month is a start. As income grows, step up the SIP by 10% annually. Someone earning ₹50,000/month could begin with ₹5,000–10,000 SIP; earning ₹1 lakh/month, ₹20,000–30,000. The exact number matters less than consistency.

SWP is the opposite of SIP — you withdraw a fixed amount from your mutual fund corpus every month. Ideal for retirees or anyone needing regular income from existing investments. The remaining corpus continues to grow at market rate, and only the gains portion of each withdrawal is taxed — making SWP far more tax-efficient than FD interest.

SIP puts money INTO a fund monthly (wealth creation); SWP pulls money OUT of a fund monthly (income generation). SIPs are for young/salaried investors building corpus. SWPs are for retirees or anyone who has a corpus and needs regular payouts. Both can run simultaneously in different funds.

Only the gains portion of each SWP withdrawal is taxed — not the principal. Example: ₹10,000 monthly SWP may be ₹7,000 principal (tax-free) + ₹3,000 gain (taxed as LTCG or STCG). Over time, the gains proportion increases. This tax efficiency makes SWP superior to FD monthly income for most retirees.

Use the 4% rule as a starting point — withdraw no more than 4% of corpus annually to ensure 30+ years of sustenance. For India's higher inflation, 3–3.5% is safer. A ₹1 crore corpus can safely SWP ₹33,000/month (4%) or ₹25,000/month (3%). Adjust based on corpus growth and inflation.

For most retirees in higher tax brackets, SWP is clearly better. SWP: market-linked growth on remaining corpus + only gains taxed. FD: fixed ~7% interest, fully taxed at slab rate. At a 30% slab, FD's post-tax return is under 5% while SWP from a balanced fund often delivers 8–10% post-tax. Trade-off: SWP has market risk; FD doesn't.

The missed installment is simply skipped — there is no penalty from the fund house. Your bank may charge an ACH bounce fee (₹150–₹500). If 3 consecutive installments bounce, the SIP auto-cancels on many platforms. Existing units continue growing; only that month's purchase is missed.

Yes, most fund platforms allow pausing SIPs for 1–6 months. Pause is typically allowed 2–3 times per year. During pause, existing units continue to earn returns. Useful during job transitions, medical emergencies, or short-term cash crunches — better than stopping the SIP entirely.

Yes, you can run unlimited SIPs across different funds simultaneously. Many investors diversify with 3–5 SIPs: one large-cap, one flexi-cap, one mid/small-cap, one debt, and optionally one international. Avoid over-diversifying (beyond 6–8 funds) — adds complexity without reducing risk.

Yes, mutual fund units can be redeemed anytime — except ELSS funds, which have a 3-year lock-in on each installment. Open-ended funds process redemptions in 1–3 business days. Check for exit load — many funds charge 1% if redeemed within 1 year of purchase. Plan large withdrawals around tax-year boundaries to optimize LTCG.

For long-term goals (7+ years), SIP in equity mutual funds has historically outperformed FDs by 5–7% annually. FDs give guaranteed 5–8% (taxable); equity SIPs give 10–15% historical with market risk. For short-term goals (1–3 years) and capital preservation, FDs win. Most investors benefit from having both — emergency corpus in FD, wealth building via SIP.

Use both. PPF for tax-free, guaranteed 7.1% (15-year lock-in, EEE); SIP for market-linked 10–15% growth (no lock-in except ELSS). PPF maxes at ₹1.5 lakh/year — beyond that, SIP is your wealth-building vehicle. A balanced allocation might be: ₹1.5 lakh/year PPF (safety) + ₹2–5 lakh/year equity SIP (growth).

Over 10+ years, equity SIP has historically given 10–15% returns versus RD's 6–7%. RDs give guaranteed returns and are better for 1–3 year savings goals. SIPs carry market risk but reward long patience. For anyone with a 5+ year horizon and stable income, SIP wins decisively. For short-term parking, RD is safer.

Lumpsum beats SIP in steadily rising markets; SIP beats lumpsum in volatile or falling markets. Historical Indian data (2000–2025): in rising-trend periods, lumpsum outperformed SIP by 1–2% CAGR. In flat/volatile periods, SIP outperformed by 0.5–1.5%. For most retail investors with monthly income, SIP is practical regardless of market phase.

Top mistakes: stopping during market falls, chasing last year's top-performing fund, not stepping up with income, over-diversifying across 10+ funds, and withdrawing early for non-emergencies. Also avoid: investing in too many small-cap funds without horizon, ignoring expense ratios, and switching funds within 3 years based on short-term performance.

Look at 5-year and 10-year returns, not 1-year spikes. Funds at the top of a 1-year chart are often at the bottom 3 years later due to mean reversion. Pick a consistent performer (5-year return within top 40% of category, 10-year return within top 50%). Stick with it for at least 3–5 years before reviewing.

Rupee cost averaging is SIP's built-in mechanism to lower your average purchase price — you buy more units when NAV is low, fewer when NAV is high. Example: 6 installments of ₹5,000 at NAVs of ₹100, 90, 80, 85, 95, 105 give 58.3 units vs lump-sum ₹30,000 at ₹92.5 average = 324 units. Both end up similar — but the SIP investor never had to time the market.

Compounding means your returns generate their own returns — growth accelerates exponentially over time. ₹5,000 monthly at 12% for 10 years = ₹11.6 lakh. For 20 years = ₹50 lakh (4x more). For 30 years = ₹1.76 crore (15x the 10-year value). The last decade of any 30-year SIP is where most of the corpus is built. Start early.

Yes — SIPs are the best tool for 10–15 year goals like child's higher education. ₹5,000/month in an equity fund for 15 years at 12% grows to ~₹25 lakh, covering most Indian college degrees. For overseas education (₹75 lakh–1 crore needed), ₹15,000/month for 15 years is a realistic plan. Increase SIP by 10% annually as income grows.

A typical ₹50,000/month allocation for someone with a 15+ year horizon: ~40% large-cap (₹20k), ~30% flexi-cap or mid-cap (₹15k), ~20% small-cap (₹10k), ~10% debt or gold (₹5k). Conservative investors should flip it: 60% large-cap/index, 20% hybrid, 20% debt. Rebalance once a year.

Yes — SIP remains the most effective wealth-building tool for Indian retail investors. India's equity market has delivered 12–15% CAGR over 25 years, far ahead of inflation. With ₹100 minimums, zero-commission apps, and improving fund choices, the barrier to entry has never been lower. The only question is when you start, not whether.

Yes, if you invest consistently for long periods (15+ years) and avoid panic-selling. ₹20,000/month at 12% for 25 years becomes ~₹3.7 crore — lifestyle-changing for most Indians. The formula is simple: time + consistency + discipline. The hard part is behavioral — staying invested through market downturns, rumors, and lifestyle temptations.