Investment Calculators
Free tools to plan and track your investments
Year-wise Growth
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 1 | ₹1.2 Lakhs | ₹8,093 | ₹1.28 Lakhs |
| 3 | ₹3.6 Lakhs | ₹75,076 | ₹4.35 Lakhs |
| 5 | ₹6 Lakhs | ₹2.25 Lakhs | ₹8.25 Lakhs |
| 7 | ₹8.4 Lakhs | ₹4.8 Lakhs | ₹13.2 Lakhs |
| 9 | ₹10.8 Lakhs | ₹8.68 Lakhs | ₹19.48 Lakhs |
| 10 | ₹12 Lakhs | ₹11.23 Lakhs | ₹23.23 Lakhs |
SIP Step-up Tip
If you increase your SIP by 10% every year, your ₹23.23 Lakhs could become much more!
What is SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. Instead of investing a large amount at once, SIP allows you to invest small amounts at regular intervals — typically monthly. This approach helps you benefit from rupee cost averaging, where you buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility on your investments.
SIP is one of the most popular investment methods in India, with over 7.5 crore SIP accounts active as of 2025. The minimum SIP amount can be as low as ₹500 per month, making it accessible to almost everyone.
SIP vs Lumpsum — Which is Better?
Both SIP and lumpsum have their advantages. SIP works best when you have a regular income and want to build wealth gradually. It removes the need to time the market. Lumpsum investing can be better when markets are at a low point and you have a large amount available.
For most salaried individuals in India, SIP is the recommended approach because it matches your cash flow (monthly salary), enforces discipline, and reduces the risk of investing everything at a market peak.
How Does SIP Compounding Work?
Each SIP installment starts earning returns from the day it is invested. Over time, your returns also earn returns — this is the power of compounding. The longer you stay invested, the more powerful this effect becomes. For example, a ₹10,000 monthly SIP at 12% for 10 years gives you ₹23.23 lakhs, but the same SIP for 20 years gives you ₹99.91 lakhs — more than 4x the 10-year amount, even though you only invested 2x more.
Frequently Asked Questions
Can I stop my SIP anytime?
Yes, SIP can be stopped at any time without any penalty. There is no lock-in period for regular SIP investments in open-ended mutual funds (except ELSS which has a 3-year lock-in).
What is the minimum SIP amount?
Most mutual funds in India allow SIP starting from ₹500 per month. Some funds offer SIP from as low as ₹100.
Is SIP risk-free?
No, SIP investments in mutual funds are subject to market risks. However, SIP reduces timing risk through rupee cost averaging. For long-term goals (7+ years), equity SIPs have historically delivered positive returns.