Calculate returns on your Systematic Investment Plan
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. It automates investing, benefits from rupee cost averaging (buying more units when prices are low, fewer when high), and harnesses the power of compounding over time.
A common guideline is 10-20% of monthly income. Start with what you can afford consistently—even ₹500/month grows significantly over time. Use the 50-30-20 rule: 50% needs, 30% wants, 20% savings including SIP investments.
SIP spreads investment over time, reducing timing risk and averaging costs. Lumpsum invests all at once, potentially better if markets are low. SIP suits salaried individuals and reduces emotional decision-making. Lumpsum works for windfalls if you can tolerate volatility.
Yes, SIPs have no lock-in period (except ELSS funds with 3-year lock-in). You can pause, stop, or modify the amount anytime. However, consistency is key for wealth building—avoid stopping during market downturns as that's when you buy units cheaply.
SIP returns use XIRR (Extended Internal Rate of Return) as each installment is invested at different times. Simple CAGR doesn't work accurately. Our calculator uses XIRR concepts to give you the true annualized return on your SIP investments over the tenure.
Yes, you can request your fund house or investment platform to change your SIP date. Most mutual fund platforms allow you to select any date between the 1st and the 28th of the month, ideally aligning with your salary payout cycle to ensure funds are available.
Returns from equity mutual fund SIPs are taxed as capital gains. Short-term capital gains (STCG) on units held for less than 12 months are taxed at 20%. Long-term capital gains (LTCG) on units held for more than 12 months are taxed at 12.5% on gains exceeding ₹1.25 lakh in a financial year.
Yes, this is known as a Step-up SIP or Top-up SIP. It allows you to automatically increase your monthly investment by a fixed percentage (e.g., 10%) or a fixed amount every year, aligning with salary hikes and significantly boosting your compounding returns.
No, SIP returns are not guaranteed. Since mutual funds invest in market-linked assets like equities and debt instruments, returns fluctuate based on market movements. However, history shows that long-term SIPs (7+ years) carry a lower risk of capital loss and tend to beat inflation.
Rupee cost averaging is an automatic investment benefit where your fixed SIP amount buys more mutual fund units when market prices (NAV) are low, and fewer units when prices are high. Over time, this averages out the cost of purchase without needing to time the market.
Monthly SIP is generally the most practical option for most salaried individuals as it aligns with monthly income cycles. Research shows that over long terms (5+ years), the difference in final returns between daily, weekly, and monthly SIP frequencies is negligible.
If your account has insufficient balance, the SIP installment for that month will fail. While mutual fund houses do not charge penalties for failed installments, your bank may levy ECS/Auto-debit bounce charges. Missing 3 consecutive installments may result in the cancellation of the SIP.
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