SIP Calculator

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It allows you to invest small amounts periodically instead of a lump sum, making it easier to invest consistently.

SIP returns are calculated using the formula: FV = P × [((1 + i)^n - 1) / i] × (1 + i), where FV is future value, P is monthly investment, i is monthly interest rate, and n is the number of months.

SIP helps in rupee cost averaging and reduces the impact of market volatility. It's suitable for regular investors who want to invest consistently. Lump sum may give higher returns if timed correctly but requires market timing skills.

Equity mutual funds historically provide 12-15% annual returns, while debt funds provide 6-9%. However, past performance doesn't guarantee future returns. It's important to set realistic expectations based on the fund category and market conditions.

Yes, you can stop your SIP anytime without any penalty. However, the units already purchased will remain in your account. You can redeem them as per your financial goals and exit load conditions.

Start with an amount you can comfortably invest regularly without affecting your monthly expenses. Financial experts suggest investing 10-20% of your monthly income. Begin with a smaller amount and increase it annually as your income grows.

SIP Payment Duration is the number of years you will actively make SIP payments. Total Investment Period is the entire time period for which your money will compound for wealth creation, including the SIP payment years. For example, you might pay SIP for 10 years (SIP Payment Duration) but let your investment grow for 20 years (Total Investment Period). This allows your investments to benefit from compound interest even after you stop making new investments.