Calculate your mutual fund SIP returns instantly. Type any amount, adjust any field — see your wealth grow in real time.
A Systematic Investment Plan (SIP) is a method of investing a fixed amount in mutual funds at regular intervals — monthly, quarterly, or weekly. Rather than investing a large sum all at once, SIP lets you build wealth steadily over time.
SIP is not a mutual fund itself. It is simply the way you invest in a mutual fund. Think of it like an EMI for your future — except instead of paying off debt, you're building an asset.
Select a mutual fund scheme (equity, debt, or hybrid) and decide your monthly SIP amount — as low as ₹500.
Your bank authorises a standing instruction. On your chosen date every month, the amount is deducted automatically.
Your money buys mutual fund units at the current Net Asset Value (NAV). When NAV is low, you get more units. When high, fewer.
Returns on your units get reinvested. Over years, compounding creates wealth that grows faster than your contribution rate.
Withdraw anytime (for most funds). No lock-in for most equity mutual funds, though ELSS has 3 years.
This calculator uses the same formula as Groww, Zerodha, and ET Money. Many calculators get this wrong — here is the correct approach:
A common mistake is to use monthly rate = 12% ÷ 12 = 1%. This is wrong because returns compound. The correct monthly rate is (1 + 0.12)^(1/12) − 1 = 0.9489%, not 1%.
If you use 1% monthly, compounded over 12 months gives you 12.68% annually — not 12%. That inflates the result. Our formula converts correctly.
Each investment option suits a different investor profile and goal. Here is a direct comparison to help you decide:
| Feature | SIP (Mutual Fund) | Lumpsum MF | FD | PPF |
|---|---|---|---|---|
| Typical returns | 10–14% p.a. | 10–14% p.a. | 6.5–9% | 7.1% |
| Min. investment | ₹500/month | ₹5,000 | ₹1,000 | ₹500/year |
| Lock-in period | None (most funds) | None (most funds) | Premature exit penalty | 15 years |
| Tax benefits | LTCG @ 10% above ₹1L | LTCG @ 10% | Taxable as income | EEE — fully tax-free |
| Risk level | Medium (equity) | Medium | Zero | Zero |
| Best for | Long-term wealth building | Lump sum deployment | Short-term, capital safety | Retirement, tax saving |
Verdict: For most Indian salaried professionals aged 25–40, the best strategy is SIP in equity mutual funds for long-term goals (10+ years) + PPF for tax-free retirement corpus + FD for emergency fund. Not one or the other — all three serve different purposes.
₹5,000/month starting at 25 beats ₹10,000/month starting at 35 — by over ₹50 lakh by age 55 at 12% returns. Time is the most powerful variable in compounding, not the amount.
A "step-up SIP" increases your contribution each year matching salary increments. ₹5,000/month with 10% annual step-up over 20 years gives 2.8x more than a flat ₹5,000/month SIP.
When markets fall 20–30%, your SIP buys far more units at low prices. Stopping during a crash is the single biggest SIP mistake Indian investors make. Every bear market has historically recovered — and those who stayed invested benefited most.
Nifty 50 index funds have delivered ~12% CAGR over 20 years with zero fund manager risk. For beginners, a Nifty 50 or Sensex index fund is the lowest-cost, most reliable SIP option available.
Monthly monitoring creates anxiety and irrational decisions. Set a calendar reminder for once a year. If the fund underperforms its benchmark for 3 consecutive years, then consider switching — not before.