Discover the power of compounding. Calculate your future wealth from monthly investments and see how small regular savings grow into Crores over time.
Invest a fixed monthly amount and let rupee cost averaging compound your wealth.
Based on an assumed 12% annual compounding rate. See how time reduces the monthly burden drastically.
A Systematic Investment Plan works on the principle of compound interest applied to monthly cash inflows. The mathematical formula used by this calculator is:
Where:
Most investors make the mistake of keeping their SIP amount flat for 15 years, even as their salary and bonuses double. When you enable a 10% annual Step-Up, your installment increases in sync with your career progression.
Consider a practical comparison over 20 years at 12% return:
Same installment for 20 years
Increases by 10% every 12 months
By stepping up your investment by just 10% each year, your final wealth more than doubles from Rs 1 Crore to over Rs 2.07 Crores.
It compounds each monthly installment for the remaining months of your tenure using compound interest mathematics. Because early installments compound for decades, they generate the lion's share of your final wealth.
Yes. Historically, Indian equity mutual fund categories (Flexi Cap, Large & Mid Cap, Nifty 50 Index) have delivered 12% to 14% CAGR over 10 to 15 year periods. While equity returns are never guaranteed year-to-year, 12% is a realistic long-term planning benchmark.
Yes. You can increase your SIP by starting a top-up SIP or adding a new parallel SIP anytime. You can also reduce or pause your installments whenever required without any penalties.
Most mutual fund houses allow SIPs starting at Rs 500 per month. Some schemes even permit investments as low as Rs 100 per month.
In a SIP, you invest a small amount regularly (monthly or weekly), which averages your purchase cost across market highs and lows. In a lumpsum, you invest a single large sum on one day. For salaried individuals, SIP is the ideal wealth-building strategy.
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