SIP Calculator

Find out the future value of the monthly investments (SIP) done for a fixed period of years at a certain rate of return.


What is SIP?

SIP (Systematic Investment Plan) is a way of investing a fixed amount on a monthly basis in mutual funds. All you need to do is choose the amount, choose a fixed date, and your SIP will get started. You can stop your SIP anytime or increase/decrease it whenever you wish to. The pre-defined SIP intervals can be on a weekly/monthly/quarterly/semi-annually or annual basis. The minimum amount to start SIP is Rs. 500 with no maximum limit.

For Example, Like If you take an SIP of 5,000 for 1 year on Jan 1, 2020, you will be paying Rs 5,000 per month for next 12 months.

Why should one invest in mutual funds through SIP?

More convenient for average person on wallet

Its more easy for a person to invest in small amount every month, rather than a lump sum amount. Investing through SIP is lighter on wallet. Its easy to pay Rs 5,000 per month for 1 years, rather than investing 60,000 at a same time.

It brings your average cost price for unit down (in volatile market)

The biggest advantage of SIP is this part, There is a concept of rupee-cost averaging, In SIP you buy less when market and NAV are UP and you get more units when they are low. When this happens, the average cost of per unit is lower.

When should one invest in mutual funds through SIP?

Investment through SIP must be done only when markets are uncertain or very volatile, when you don’t know which side they are headed to. SIP will be beneficial only if markets are volatile or going down after you have invested. If it happens that markets turns bullish and starts going up, in that case SIP will not be beneficial and will give less return compared to lump sum investment in the start.

Difference between SIP Investment and One-Time Investment

SIP Investment One-time Investment
  • Periodic investments in a tenure
  • One-time investment in a tenure (lump sum)
  • Earns better during market lows
  • Earns better during market highs
  • SIPs can protect investments from potential market crash
  • One-time investments can lead to major loss during market crash, which happens often enough

Does all investment through SIP have Tax Benefit?

No, all investments through SIP doesn't has tax benefit. Only investments in ELSS (Equity Linked Savings Scheme) through SIP have tax exemption up to Rs. 1.5 lacs annually under Section 80C of Income Tax Act, 1952.