How is SIP return calculated?

SIP returns are calculated using the Future Value formula: FV = P × [ ( (1 + i)^n - 1 ) / i ] × (1 + i), where P is the periodic investment, i is the periodic interest rate, and n is the total number of periods.

Is SIP better than Lump Sum?

SIP allows for rupee-cost averaging and disciplined investing. It is often preferred for long-term wealth creation due to market volatility mitigation.

Investment Tool

SIP Calculator

Estimate your mutual fund returns and wealth gain with the power of compounding. Calculate future value for Systematic Investment Plans.

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Wealth Growth Timeline

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where a fixed amount is invested at regular intervals (usually monthly). This approach encourages disciplined saving and allows investors to benefit from the power of compounding and rupee-cost averaging.

The SIP Formula

Our SIP calculator uses the reliable Future Value formula to estimate your corpus:


                            FV = P × [ ( (1 + i)^n - 1 ) / i ] × (1 + i)

Where:

FV is future value of investment
P is amount invested monthly
i is monthly interest rate (Annual rate / 12 / 100)
n is total number of monthly investments

Benefits of SIP Investing

Power of Compounding: By reinvesting your returns, your money starts earning interest on interest, leading to exponential growth over long periods.
Rupee-Cost Averaging: You buy more units when prices are low and fewer units when prices are high, lowering your average cost of investment.
Disciplined Saving: SIPs automate your investments, ensuring you stay committed to your financial goals regardless of market conditions.
Low Entry Barrier: You can start investing in mutual funds through SIP with as little as ₹500 per month.

Frequently Asked Questions

Q: Are SIP returns guaranteed?

No. SIP investments are subject to market risks. The calculator provides an estimate based on your expected return rate.

Q: What is a realistic return rate for SIP?

In India, equity mutual funds have historically delivered 10-15% returns over 10+ years, though this varies by market cycles.

Q: Should I stop SIP during market falls?

Actually, market falls are the best time to continue SIPs as you get more units for the same investment amount (Rupee-Cost Averaging).