What is SIP?

SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals — usually monthly. It's one of the most disciplined ways to build wealth over time because it averages out market volatility through rupee-cost averaging.

How Does SIP Work?

When you start a SIP, a fixed amount is auto-debited from your bank account on a chosen date every month and invested in your selected mutual fund. You get units based on the NAV (Net Asset Value) of that day. Over time, your money grows through compounding.

SIP Formula

The future value of a SIP is calculated as: FV = P × ((1+i)^n − 1) ÷ i × (1+i)

Where: P = Monthly investment, i = Monthly rate of return, n = Number of monthly installments.

Example: ₹5,000/month for 10 years at 12%

• Total invested = ₹5,000 × 120 = ₹6,00,000
• Estimated returns = ₹5,61,695
• Total value = ₹11,61,695

Notice how your money more than doubles — that's the power of compounding.

Benefits of SIP

• ✅ Disciplined investing — no need to time the market
• ✅ Rupee cost averaging — buys more units when markets fall
• ✅ Start with as low as ₹500/month
• ✅ Flexible — increase, decrease, or pause anytime
• ✅ Power of compounding works best over 10+ years

Why Use Our SIP Calculator?

Our free SIP calculator shows you exactly how much your monthly investment will grow over your chosen period. Adjust the amount, expected return, and duration to plan your financial goals — whether it's retirement, a house, or your child's education.