What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Because you invest regularly, you buy more units when prices are low and fewer when they're high (rupee-cost averaging), and your returns compound over time.
P is the monthly investment, i is the monthly rate of return and n is the number of months. With a step-up, the monthly amount grows by the chosen percentage each year. This calculator simulates that month by month.
Example
Investing ₹10,000 a month for 15 years at 12% could grow to about ₹50 lakh, from ₹18 lakh invested. Add a 10% yearly step-up and it rises to roughly ₹87 lakh.
Tips for SIP investors
- Start early. Time in the market matters more than the amount.
- Step up every year as your income grows. Even 5–10% makes a big difference.
- Don't stop during market dips. That's when you get units cheaply.
- Match the fund to your goal. Equity for 5+ years, debt for shorter goals.
Returns shown are estimates, not guarantees. Mutual fund investments are subject to market risks.
Frequently asked questions
What return should I assume for a SIP?
Long-term equity mutual funds have historically returned around 10–14% a year in India, but past returns don't guarantee future results. Using 10–12% gives a conservative estimate.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year, so your investing keeps pace with salary hikes.
Can I stop or pause a SIP?
Yes. Most funds allow you to pause or stop a SIP anytime without penalty, though exit loads may apply if you redeem units early.
Is SIP better than a lump sum?
SIP reduces the risk of investing everything at a market peak and builds discipline. A lump sum can earn more if markets rise steadily after you invest.