SIP Calculator

The math is exact, but the projection depends on the return rate you enter. Future returns are uncertain. Use historical averages adjusted downward for safety: 11-12% for large-cap, 13-14% for mid/small-cap, 7-8% for debt funds. The calculator output is a planning estimate, not a guarantee.

Most mutual funds in India accept SIPs starting from ₹500/month, with some starting as low as ₹100/month. There is no upper limit. Many investors start small and increase contributions as their income grows — exactly what the step-up SIP option models.

Yes. You can pause an SIP for up to 6 months, increase or decrease the amount, change the frequency, or stop it entirely without any exit penalty (most funds). Equity funds and most categories have no lock-in. Only ELSS (tax-saver) funds have a mandatory 3-year lock-in per instalment.

Mathematically, lumpsum wins about 70-75% of the time over long periods because more money is invested earlier and compounds longer. But SIP wins in volatile or falling markets through rupee cost averaging. For most investors who don't have ₹10+ lakh sitting idle, SIP is the realistic and behaviorally easier choice. SIPs also enforce discipline — you don't try to time the market.

SIP (Systematic Investment Plan) transfers money from your bank account to a mutual fund. STP (Systematic Transfer Plan) transfers money from one mutual fund to another — typically from a debt fund to an equity fund over months. STP is useful when you receive a lumpsum (bonus, inheritance) and want to deploy it gradually into equities.

No. Mutual funds carry market risk. Equity funds can fall 20-40% in a bad year. Debt funds can also fluctuate, especially with interest rate changes. The 12% expected return is a long-term average — actual year-to-year returns vary widely. Only government schemes like PPF (7.1%) or post office FDs offer guaranteed returns.

Only if you invest in an Equity Linked Savings Scheme (ELSS) — these are mutual funds with a 3-year lock-in that qualify for the ₹1.5 lakh 80C deduction in the old tax regime. Regular SIPs in non-ELSS funds do not qualify for any tax deduction. Under the new tax regime, no SIP qualifies for 80C — only employer NPS contribution remains deductible.

Each SIP instalment is treated as a separate purchase with its own holding period. When you redeem, FIFO (first-in-first-out) applies. Equity funds: held over 12 months = LTCG at 12.5% above ₹1.25L annual exemption; under 12 months = STCG at 20%. Debt funds bought after April 2023: all gains at slab rate, no indexation.

CAGR assumes a single lumpsum invested at the start — not appropriate for SIPs where money is invested over time. XIRR (Extended Internal Rate of Return) is the correct measure for SIPs — it calculates the time-weighted annualised return considering each instalment's actual investment date. Use XIRR when comparing your actual SIP performance with expected returns.

Always direct plans if you're comfortable choosing funds yourself. Direct plans have a lower expense ratio (typically 0.5-1% lower than regular), which compounds significantly over 20 years. On a ₹10,000/month 20-year SIP, the difference can be ₹15-25 lakh. Use platforms like Coin, Groww, Kuvera, or directly through AMC websites for direct plans.

For most investors, 3-5 well-chosen funds covering different categories is ideal. A simple goal-based portfolio: one large-cap or index fund for stability (40% allocation), one flexi-cap or multi-cap for diversification (30%), one mid/small-cap for higher growth potential (20%), one debt or hybrid fund for cushion (10%). Holding more than 7-8 funds rarely improves returns and complicates tracking. Avoid overlap — don't pick three large-cap funds with the same top-10 holdings.

A common rule of thumb is to invest 20-30% of post-tax income in long-term investments, with SIPs forming the bulk. If your monthly take-home is ₹80,000, target ₹15,000-25,000 in SIPs. Start with whatever is comfortable — even ₹2,000-5,000 monthly builds the habit and compounds materially over 20 years. Increase contributions with every salary hike using the step-up SIP feature in this calculator.