SIP Calculator

What is SIP?

A Systematic Investment Plan (SIP) is an investment strategy that allows you to invest a fixed amount regularly in mutual funds. It's like a recurring deposit but for mutual funds, helping you build wealth over time through disciplined investing.

Regular Investment

Invest fixed amounts at regular intervals

Rupee Cost Averaging

Buy more units when prices are low

Disciplined Saving

Build wealth through consistent investing

Why SIP is Important for Investment

Disciplined approach to investing
Reduces impact of market volatility
Power of compounding
Flexible investment amounts

No need to time the market
Convenient and automated
Long-term wealth creation
Tax benefits under Section 80C

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Total Returns

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Benefits of SIP

Risk Management

Reduces market timing risk through regular investments

Affordable

Start with as little as ₹500 per month

Diversification

Access to professionally managed portfolios

How SIP Works: A Practical Guide for Indian Investors

SIP (Systematic Investment Plan) is one of the most popular ways for Indian investors to build wealth in mutual funds. With SIP, you invest a fixed amount every month, no matter what the market is doing. This helps you benefit from rupee cost averaging and the power of compounding.

Example 1: If you invest ₹5,000 per month for 10 years at 12% annual return, you could accumulate about ₹11.6 lakh (total invested: ₹6 lakh).
Example 2: A SIP of ₹2,000/month for 20 years at 12% can grow to ₹19.8 lakh (total invested: ₹4.8 lakh).

Step-by-Step: How to Start a SIP in India

Choose a mutual fund scheme (equity, debt, or hybrid).
Decide your monthly investment amount (minimum ₹500).
Set up SIP online or through your bank/broker.
Track your investments regularly and review annually.

Tip: Start early and stay invested for the long term to maximize your returns!

Frequently Asked Questions (FAQ)

Q1: Can I stop or pause my SIP anytime?
Yes, you can stop, pause, or change your SIP amount anytime without penalty.

Q2: Is SIP safe for beginners?
SIP is considered one of the safest and most disciplined ways to invest in mutual funds for beginners in India.

Q3: What is the best time to start a SIP?
The best time is now! The earlier you start, the more you benefit from compounding.

Q4: Can I invest in SIP for my child?
Yes, you can start a SIP in your child’s name for their future goals like education or marriage.

Q5: Are SIP returns guaranteed?
No, SIP returns are market-linked and not guaranteed. However, long-term SIPs in equity funds have historically given good returns in India.