Plan your wealth with a mix of one-time lumpsum and regular monthly investments.
Combining a Systematic Investment Plan (SIP) with a one-time Lumpsum investment is a popular strategy in India. It allows you to invest a large corpus (like a bonus or sale proceeds) immediately while continuing to build wealth through monthly contributions.
A Systematic Investment Plan (SIP) is a powerful tool for building long-term wealth. By investing a small amount consistently every month, you benefit from the "power of compounding" and "rupee cost averaging." Our SIP Calculator helps you estimate how much wealth you can accumulate over 5, 10, or 25 years based on your monthly contribution and expected rate of return.
FV = Future Value, P = Monthly Investment, i = Monthly return rate (Annual rate/12/100), n = Number of months
This calculator utilizes standard mathematical formulas audited and verified by our team of Certified Financial Planners (CFP) to ensure mathematical precision and compliance.
The primary advantage of a SIP is Rupee Cost Averaging. Since Indian markets are volatile, a SIP ensures that you buy more units of a mutual fund when prices are low and fewer units when prices are high. Over a 10-year period, this typically results in a lower average cost per unit compared to a single lumpsum investment made at a market peak.
As your career progresses and your salary increases, your investments should too. A Step-up SIP involves increasing your monthly contribution by a fixed percentage (e.g., 10%) every year. Even a small annual hike can double your final corpus. For example, a ₹10,000 SIP for 20 years at 12% yields ~₹1 Crore. A 10% annual step-up on the same SIP yields ~₹2.1 Crores!
While some mid-cap and small-cap funds in India have given 20%+ returns in the short term, a realistic long-term projection for a diversified equity portfolio is between 12% and 15% CAGR. For debt-oriented SIPs, expect 6% to 8%. Our calculator allows you to toggle between these rates to see how they impact your retirement or child education goals.
Many investors wait for the 'perfect' time to start, but in a SIP, Time in the Market is more important than Timing the Market. Starting a SIP today with ₹5,000 is often better than waiting a year to start with ₹7,000. The earlier you start, the more 'compounding cycles' your money goes through.
A popular thumb rule for becoming a Crorepati.
Investing ₹2,000 from age 22 to 52.
A SIP is a method of investing a fixed sum of money at regular intervals (monthly) in a mutual fund scheme, rather than a one-time lumpsum.
When the market is down, your SIP buys more units; when it's up, it buys fewer. Over time, this averages out the cost of your units, reducing risk.
SIP returns use the Future Value of Annuity formula: FV = P * [{(1 + i)^n - 1} / i] * (1 + i), where P is the monthly amount and i is the monthly interest rate.
A Step-up SIP is when you increase your monthly investment amount annually (e.g., by 10% each year), which drastically increases your final corpus.
SIP is generally better for long-term wealth creation as it instills discipline and removes the need to time the market.
Yes, mutual fund SIPs are flexible. You can stop, pause, or change the amount without any penalty in most cases.
This shows pre-tax returns. Long Term Capital Gains (LTCG) above ₹1.25 Lakhs are taxed at 12.5% in India (as of 2024).
To reach ₹1 Crore in 15 years at 12% returns, you need a monthly SIP of roughly ₹20,000. Use our calculator to test your specific target!
The date doesn't matter much for long-term returns. Choose a date shortly after your salary is credited to ensure the funds are available.
No, mutual fund investments are subject to market risks. The returns shown are projections based on historical averages.