📈 SIP Calculator

About SIP (Systematic Investment Plan)

SIP is a disciplined investment approach where you invest a fixed amount regularly in mutual funds. It's ideal for building long-term wealth through the power of compounding and rupee cost averaging.

Benefits of SIP

• Rupee Cost Averaging: Buy more units when prices are low, fewer when high
• Power of Compounding: Earn returns on returns over time
• Disciplined Investing: Automated monthly investments
• Flexibility: Start with as low as ₹500/month
• No Market Timing: Invest regardless of market conditions

How SIP Works

• Choose a mutual fund scheme based on your goals
• Decide monthly investment amount and date
• Set up auto-debit from your bank account
• Units are allocated based on NAV on investment date
• Continue investing regularly for maximum benefit

Expected Returns

• Equity Funds: 12-15% annually (long-term)
• Balanced/Hybrid Funds: 10-12% annually
• Debt Funds: 7-9% annually
• Index Funds: 10-12% annually

Tips for SIP Success

• Start early to maximize compounding benefits
• Stay invested for long term (5+ years)
• Don't stop SIP during market downturns
• Increase SIP amount annually (step-up SIP)
• Diversify across different fund categories
• Review portfolio annually but avoid frequent changes

Tax Implications

• Equity Funds: LTCG above ₹1L taxed at 10%, STCG at 15%
• Debt Funds: Gains taxed as per income tax slab
• Long-term means holding for more than 1 year (equity) or 3 years (debt)