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SIP Calculator

Calculate your Systematic Investment Plan (SIP) returns, maturity value, and wealth gained with year-by-year breakdown. Plan your mutual fund investments smartly.

SIP Investment Details

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Amount to invest every month
%
Expected annual returns (equity: 12-15%)
years
How long you plan to invest
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Enter SIP details to see your wealth growth

About SIP Calculator

A Systematic Investment Plan (SIP) is a method of investing a fixed sum regularly in mutual funds. SIP allows you to invest in a disciplined manner without worrying about market volatility and timing. It is one of the most popular investment strategies for building long-term wealth.

SIP Formula

FV = P ร— [((1 + r)^n โˆ’ 1) / r] ร— (1 + r)

  • FV โ€” Future Value (Maturity Amount)
  • P โ€” Monthly Investment Amount
  • r โ€” Monthly Return Rate (Annual Rate รท 12 รท 100)
  • n โ€” Total number of months

Benefits of SIP

  • Rupee Cost Averaging โ€” Buy more units when NAV is low, fewer when high
  • Power of Compounding โ€” Returns generate their own returns over time
  • Disciplined Investing โ€” Auto-debit ensures regular investment
  • Flexibility โ€” Start with as low as โ‚น500/month, increase anytime
  • No Market Timing โ€” Eliminates need to time the market
  • Tax Benefits โ€” ELSS funds offer 80C deduction up to โ‚น1.5L

Expected Return Rates by Fund Type

  • Equity Funds (Large Cap): 11-13% p.a.
  • Equity Funds (Mid Cap): 12-15% p.a.
  • Equity Funds (Small Cap): 14-18% p.a. (higher risk)
  • Hybrid Funds: 9-12% p.a.
  • Debt Funds: 6-9% p.a.
  • ELSS (Tax Saving): 11-14% p.a.

Note: Past performance does not guarantee future returns. These are indicative ranges.

How to Start a SIP

  • Step 1: Complete KYC (Aadhaar, PAN card required)
  • Step 2: Choose mutual fund based on goals and risk appetite
  • Step 3: Decide monthly investment amount
  • Step 4: Select SIP date (1st, 7th, 15th, 25th of month)
  • Step 5: Set up auto-debit from bank account
  • Step 6: Monitor annually, rebalance if needed

SIP Investment Tips

  • Start Early: 10-year delay can reduce corpus by 60-70%
  • Invest Regularly: Never skip installments, even in market falls
  • Increase with Income: Step-up SIP by 10% annually
  • Stay Invested: Minimum 5 years for equity, 10+ for wealth creation
  • Diversify: Mix large-cap, mid-cap, and debt funds
  • Don't Panic Sell: Market corrections are buying opportunities
  • Review Annually: Check fund performance, switch if underperforming 3 years

Common SIP Mistakes to Avoid

  • Stopping SIP during market falls (this is when you get best returns)
  • Investing in too many funds (5-7 funds is optimal)
  • Ignoring expense ratio (prefer funds with ratio below 1.5%)
  • Choosing wrong SIP date (pick 1-2 days after salary credit)
  • Not reviewing portfolio (annual review essential)
  • Redeeming too early (minimum 5 years for equity)

Tax Implications

  • Equity Funds: LTCG 10% (>โ‚น1L, held >1 year), STCG 15% (<1 year)
  • Debt Funds: Taxed as per income slab (post Apr 2023)
  • ELSS: 80C deduction up to โ‚น1.5L, 3-year lock-in
  • Dividend: Taxed as per income slab (TDS 10% if >โ‚น5000)