SIP Calculator
Discover the power of disciplined investing. See how your monthly investments can grow over time with the magic of compounding.
Investment Details
Enter the amount you can invest each month
Increase your investment by this percentage every year
Investment Growth Over Time
Invested vs Returns
Smart Insights
Explore how small changes can transform your investment journey
Year-wise Growth Timeline
Watch your wealth build year by year
Understanding SIP
What is SIP?
A Systematic Investment Plan (SIP) is a disciplined approach to investing where you invest a fixed amount regularly (usually monthly) into mutual funds or other investment vehicles. It leverages rupee-cost averaging and the power of compounding to build wealth over time.
How SIP Works
When you invest via SIP, your fixed amount buys more units when prices are low and fewer when prices are high — this is rupee-cost averaging. Over time, this reduces the average cost per unit. Combined with compounding, even modest regular investments can grow substantially.
Benefits of SIP
- Discipline: Encourages regular saving habits
- Rupee-Cost Averaging: Reduces market timing risk
- Compounding: Returns generate their own returns over time
- Flexibility: Start, stop, or modify anytime
- Accessibility: Start with as little as ₹500
Risks to Consider
- Market Risk: Returns depend on market performance
- Inflation Risk: Returns may not outpace inflation
- Lock-in Period: Some funds have exit loads for early withdrawal
- Goal Misalignment: Choose funds aligned with your financial goals
Frequently Asked Questions
What is the minimum amount for SIP?
Most mutual funds allow SIP investments starting from ₹500 per month. Some funds may have higher minimums.
Can I modify my SIP amount later?
Yes, most investment platforms allow you to increase, decrease, or pause your SIP amount. Some offer step-up SIP facilities that automatically increase your investment annually.
What is a step-up SIP?
A step-up SIP automatically increases your investment amount by a fixed percentage each year. This helps you invest more as your income grows, accelerating wealth creation.
How does compounding work in SIP?
Compounding means your investment returns start generating their own returns. In SIP, even small amounts grow exponentially over time as each monthly installment earns returns, and those returns earn further returns.
What is a good expected return for SIP?
Historical equity mutual fund returns in India have averaged 12-15% annually over the long term. However, past performance doesn't guarantee future returns.
Is SIP suitable for short-term goals?
SIP is best suited for medium to long-term goals (5+ years) as it allows compounding to work effectively. For short-term goals, debt funds or fixed deposits may be more appropriate.