Estimate the future value of monthly investments (SIP) given an expected annual return. Shows total invested, estimated value, and annual breakdown. Includes CSV download and print options.
Systematic Investment Plan (SIP): A practical guide to disciplined investing
Systematic Investment Plans (SIPs) are one of the most accessible vehicles ...
How SIPs work — the mechanics
At its core, a SIP is an annuity: repeated contributions ...
Why time matters more than timing
One of the most powerful lessons of investing is that time in the market usually beats timing the market ...
Rupee-cost averaging: smoothing volatility
Rupee-cost averaging reduces the impact of purchasing at high valuations ...
Setting realistic return expectations
Choosing an expected return (the "annual return" input in this calculator) is an estimate—never a guarantee ...
Choosing contribution size and horizon
The two direct levers you control are how much you invest each period and for how long you invest ...
Practical strategies: round up, escalate, and lump-sum boosts
Small behavioral adjustments compound into meaningful outcomes ...
Risk management and asset allocation
SIPs enable regular exposure to asset classes, but they don't eliminate risk ...
Taxes and account choice
Taxes can erode returns. Tax-efficient accounts (retirement accounts or tax-advantaged instruments) ...
Costs: expense ratios and transaction fees
Fund expense ratios and any transaction charges reduce net returns ...
When to stop, pause, or reallocate
Life happens—job changes, medical emergencies, or economic shocks may force you to pause contributions ...
Monitoring and rebalancing
Check SIP performance annually and rebalance if your allocation drifts ...
Using the SIP calculator effectively
This calculator models end-of-month SIPs with monthly compounding ...
Common mistakes to avoid
Avoid assuming unrealistically high returns for planning, abandoning SIPs during short-term market drops ...
Final takeaway
SIPs are an accessible, low-friction path to long-term wealth accumulation ...
Frequently asked questions (FAQs)
1. What is a SIP (Systematic Investment Plan)?
A SIP is a method of investing a fixed amount at regular intervals—usually monthly—into mutual funds or ETFs. It uses rupee-cost averaging and compounding to build wealth over time.
2. How does rupee-cost averaging work?
Rupee-cost averaging means your fixed contribution buys more units when prices fall and fewer when prices rise, reducing the average cost per unit over time.
3. What return should I assume for my SIP planning?
Use a conservative estimate based on historical returns. Many planners assume 8–12% for equities; always test multiple scenarios.
4. Is SIP better than lump-sum investing?
Neither is always better. Lump-sum may outperform if markets rise steadily, but SIP reduces timing risk and builds discipline.
5. How often should I increase my SIP?
Review annually or when your income rises. Increasing SIPs by 5–10% each year can dramatically improve your long-term corpus.
6. What if I pause SIP during a market downturn?
Pausing stops you from buying at lower valuations. Continuing during downturns often benefits long-term wealth building.
7. Monthly or quarterly SIP — which is better?
Monthly SIPs align with salaries and provide frequent averaging. Quarterly SIPs suit irregular income but monthly is better for consistency.
8. Are SIPs safe for everyone?
SIPs are disciplined but not risk-free. The risk depends on the fund chosen—equity funds are volatile, debt funds are more stable.
9. How are SIP returns taxed?
It depends on your country and fund type. Capital gains, dividends, and holding periods matter. Check local tax rules or consult an advisor.
10. How do I monitor and rebalance my SIP investments?
Review annually, check if asset allocation drifts, and rebalance by adjusting SIP amounts or redirecting contributions to align with goals.