SIP Returns Calculator
SIP Maturity Projection
⚠️ Results are indicative projections based on a fixed assumed return rate. Actual mutual fund returns vary with market conditions. SIP does not guarantee returns. Consult a SEBI-registered investment advisor before investing.
SIP Return Comparison — Quick Reference
| Monthly SIP | 10 Years @ 12% | 15 Years @ 12% | 20 Years @ 12% |
|---|---|---|---|
| Rs. 1,000 | Rs. 2.32 Lakh | Rs. 5.02 Lakh | Rs. 9.99 Lakh |
| Rs. 5,000 | Rs. 11.61 Lakh | Rs. 25.09 Lakh | Rs. 49.96 Lakh |
| Rs. 10,000 | Rs. 23.23 Lakh | Rs. 50.18 Lakh | Rs. 99.91 Lakh |
| Rs. 25,000 | Rs. 58.08 Lakh | Rs. 1.25 Cr | Rs. 2.50 Cr |
What is SIP and How Does It Work?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount in a mutual fund at regular intervals — typically monthly. The power of SIP lies in:
- Rupee Cost Averaging: You buy more units when prices are low and fewer when prices are high, reducing average cost over time.
- Compounding: Returns generate further returns — the longer you stay invested, the more powerful compounding becomes.
- Discipline: Automated monthly deductions build a savings habit without requiring market timing.
The SIP formula used: FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P = monthly amount, r = monthly rate, n = number of months.
Frequently Asked Questions
Historically, large-cap equity mutual funds in India have delivered 10–12% annualised returns over 10+ year periods. Mid-cap and small-cap funds may deliver higher returns (12–15%) but with higher volatility. Debt funds typically return 6–8%. For planning purposes, 10–12% is a conservative but realistic assumption for a diversified equity SIP.
SIP returns in equity mutual funds are subject to capital gains tax. Short-term capital gains (STCG) — for units held less than 1 year — are taxed at 20%. Long-term capital gains (LTCG) above Rs.1.25 lakh per year are taxed at 12.5% without indexation. ELSS (Equity Linked Savings Scheme) SIPs qualify for tax deduction under Section 80C up to Rs.1.5 lakh per year with a 3-year lock-in.
A Step-Up SIP (also called Top-Up SIP) allows you to increase your SIP amount by a fixed percentage each year, typically aligned with your salary increment. For example, starting with Rs.5,000/month and stepping up 10% annually means investing Rs.5,500 in year 2, Rs.6,050 in year 3, and so on. This significantly accelerates wealth creation and is one of the best strategies for long-term investors.
Need Financial or Legal Advice for Your Investments?
SG Law India helps businesses and individuals with investment-related legal compliance, NRI investments, and financial documentation in Pondicherry.