What is SIP and how does it work?

SIP (Systematic Investment Plan) allows you to invest a fixed amount every month in mutual funds. For example, ₹5,000/month in a Nifty 50 index fund. The power of SIP is rupee cost averaging — you buy more units when markets are down, fewer when up. Over 10–20 years, compounding turns small monthly amounts into large wealth.

How much will ₹5,000/month SIP grow to in 10 years?

At 12% annual return (large-cap fund average): ₹5,000/month × 120 months = ₹6 lakh invested → Maturity value ≈ ₹11.6 lakh. Wealth gained ≈ ₹5.6 lakh. At 15%: maturity ≈ ₹13.9 lakh. At 20 years and 12%: ₹12 lakh invested grows to ≈ ₹50 lakh. Time is more powerful than return rate.

What is the SIP formula?

SIP Maturity = P × [(1+r)^n − 1] / r × (1+r), where P = monthly investment, r = monthly rate (annual % ÷ 12 ÷ 100), n = number of months. Example: ₹10,000/month at 12% for 15 years: r = 0.01, n = 180, Maturity = ₹10,000 × [(1.01^180 − 1) / 0.01] × 1.01 ≈ ₹50.4 lakh.

Is SIP better than FD (Fixed Deposit)?

Over 10+ years, equity SIPs historically outperform FDs significantly: FD rates 6.5–7.5% (taxable) vs equity funds 12–16% historically (Nifty 50 = ~15% CAGR over 20 years). However, SIPs carry market risk — returns are not guaranteed. FDs are safer (DICGC insured up to ₹5 lakh). Rule of thumb: FD for goals under 3 years, SIP for 5+ year goals.

🇮🇳 India📈 Mutual Funds🔄 SIP + Lumpsum

SIP Calculator

Systematic Investment Plan — calculate your mutual fund maturity value, total invested, and wealth gained for any monthly SIP or lumpsum investment.

QUICK ANSWER

₹5,000/month at 12% for 15 years = ₹90,000 invested → ₹25.2 lakh maturity (₹16.2 lakh gain, +180%). At 20 years: ₹12L invested → ₹50L. The Nifty 50 has returned ~13.5% CAGR over 20 years. ELSS funds average 14% and qualify for Section 80C tax deduction up to ₹1.5L.

Monthly SIP Amount (₹)

Expected Return (% p.a.)

Time Period (years)

SIP vs Lumpsum vs FD — What grows more?

Investment	Amount	10yr value	20yr value
SIP (Nifty 50, ~13.5%)	₹5,000/month	≈ ₹23.1L	≈ ₹84.4L
SIP (Large-cap, ~12%)	₹5,000/month	≈ ₹11.6L	≈ ₹50.0L
SIP (Debt fund, ~7%)	₹5,000/month	≈ ₹8.7L	≈ ₹26.5L
FD (SBI, 7% compound)	₹6L lumpsum	≈ ₹11.8L	≈ ₹23.2L
PPF (7.1%, fixed)	₹5,000/month	≈ ₹8.8L	≈ ₹26.9L

Tax on SIP returns (India 2026)

Equity funds held >1 year: LTCG 12.5% on gains above ₹1.25L/year (Budget 2024)
Equity funds held <1 year: STCG 20%
ELSS funds: 3-year lock-in; ₹1.5L/year deduction under Section 80C
Debt funds: Taxed as per income tax slab (no LTCG benefit after March 2023)

Best SIP amounts by salary (rule of thumb)

Financial planners recommend investing 20–30% of take-home salary via SIP for retirement goals:

₹30K/month salary → ₹6,000–9,000/month SIP
₹60K/month salary → ₹12,000–18,000/month SIP
₹1L/month salary → ₹20,000–30,000/month SIP

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APA

WorldCalculators.org. (2026, June 13). SIP Calculator India — Mutual Fund Return Calculator 2026. https://worldcalculators.org/in/sip-calculator/

MLA

“SIP Calculator India — Mutual Fund Return Calculator 2026.” WorldCalculators.org, 13 June 2026, worldcalculators.org/in/sip-calculator/.

BibTeX

@misc{worldcalculators2026insipcalculator,
  title        = {SIP Calculator India — Mutual Fund Return Calculator 2026},
  author       = {{WorldCalculators.org}},
  year         = {2026},
  howpublished = {\url{https://worldcalculators.org/in/sip-calculator/}}
}

Figures change when tax years or guidance change. Cite the date shown and link the page so readers see the current version.