SIP Calculator: Plan Mutual Fund Returns
Calculate SIP returns, wealth accumulation, and maturity value for systematic investment plans.
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Tags: SIP calculator, systematic investment plan calculator, mutual fund SIP returns
SIP Calculator: Plan Mutual Fund Returns A SIP calculator projects how much a fixed monthly investment will grow to at a given annual return rate. Investing ₹10,000 per month at 12% annual returns for 15 years produces ₹50.05 lakh — on contributions of just ₹18 lakh. The remaining ₹32 lakh is compounding at work. --- See our Complete Guide to Financial Calculators What Is a SIP Calculator? Systematic Investment Plan (SIP) is the practice of investing a fixed amount in a mutual fund at regular intervals — typically monthly. SEBI-registered mutual funds in India offer SIP as the standard mode for retail investors. A SIP calculator uses the future value of an annuity formula to project wealth accumulation. The key variables are: Monthly investment (P): The fixed SIP amount Expected annual…
Frequently Asked Questions
What is a SIP calculator?
A SIP calculator computes the future value of regular monthly investments in a mutual fund, given an expected annual return rate and investment duration. It applies the future value of an annuity formula to project how much your ₹5,000/month becomes after 15 years at 12% annual returns.
How do I calculate SIP returns?
Use the formula FV = P × [((1 + r)^n - 1) / r] × (1 + r), where FV is the maturity value, P is the monthly SIP amount, r is the monthly rate (annual rate ÷ 12), and n is total months. At ₹10,000/month for 10 years at 12% p.a., you invest ₹12 lakh and receive approximately ₹23.23 lakh.
What is CAGR in SIP?
CAGR (Compound Annual Growth Rate) is the annualised rate at which an investment grows over a multi-year period, assuming growth compounds each year. In SIP context, CAGR is used to express mutual fund performance — a fund with 15% CAGR over 10 years grew at an average 15% per year compounded.
How much SIP to invest for 1 crore?
To accumulate ₹1 crore in 15 years at 12% annual returns, you need a monthly SIP of approximately ₹20,020. For 20 years at the same rate, the required SIP drops to about ₹10,109. The longer the horizon, the smaller the monthly amount needed — thanks to compounding.
SIP vs lump sum — which is better?
SIP averages your purchase cost over time (rupee cost averaging), which reduces risk in volatile markets. A lump sum investment in a rising market can outperform SIP. Historically, for equity mutual funds over 10+ year horizons, both approaches deliver comparable returns — but SIP is more practical for salaried investors.
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