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Calculate the future maturity corpus of your monthly Systematic Investment Plan (SIP). Evaluate the power of compounding, annual step-up top-ups, initial lump-sum investments, and download annual investment schedules.
Visual projection of invested capital versus accumulated wealth over time.
| Year | Monthly SIP | Annual Deposit | Total Invested | Estimated Wealth Gain | Future Value (Corpus) |
|---|
A Systematic Investment Plan (SIP) is a disciplined investment methodology offered by Indian mutual fund houses (Asset Management Companies or AMCs) that permits individuals to invest a fixed predetermined monetary amount regularly—typically on a designated calendar date every month—into a selected mutual fund scheme.
Rather than timing market peaks and troughs with a lump-sum commitment, SIP harnesses two profound financial principles: Rupee Cost Averaging (accumulating more fund units when equity markets dip and fewer units when markets appreciate) and the Power of Compounding (earning exponential interest on previously generated capital gains).
Our calculator computes your accumulated wealth using the financial industry's standard Annuity Due Compound Interest Formula, reflecting investments deployed at the inception of each monthly period:
Where the mathematical parameters represent:
r = (12 / 12) / 100 = 0.01.
n = 15 × 12 = 180 installments.
To understand how exponential compounding creates wealth, let us evaluate an investor contributing ₹10,000 every month for 15 years into an equity mutual fund portfolio yielding an average annual return of 12%:
In this 15-year scenario, your capital gains (₹32.45 Lakh) are almost double your out-of-pocket capital (₹18 Lakh). If you continue this identical SIP for an additional 10 years (total 25 years), your total corpus skyrockets from ₹50.45 Lakh to over ₹1.89 Crore, illustrating that time in the market is the single most powerful driver of wealth.
| Investment Avenue | Historical Returns (p.a.) | Compounding Frequency | Risk & Volatility Profile |
|---|---|---|---|
| Equity Mutual Funds (SIP) | 12% – 15% | Monthly Compounded | Market Linked / High Return Potential |
| Public Provident Fund (PPF) | 7.1% (Govt Set) | Annual Compounded | Sovereign Guarantee / Zero Risk |
| Bank Fixed Deposit (FD) | 6.5% – 7.5% | Quarterly Compounded | DICGC Insured / Low Risk |
| National Pension System (NPS) | 9% – 11% | Daily NAV / Annual | Regulated Pension / Moderate Risk |
| Digital Gold / Sovereign Gold Bonds | 8% – 10% + 2.5% | Market Appreciated | Commodity Linked / Moderate Risk |
As your professional salary or business profits increase each year, stepping up your monthly SIP contribution by 10% or 15% annually dramatically compresses the time required to achieve financial independence. On a ₹10,000 monthly SIP over 15 years, a modest 10% annual step-up boosts your projected corpus from ₹50.45 Lakh to ₹81.76 Lakh—yielding over ₹31 Lakh in extra wealth without straining your monthly lifestyle.
Most mutual fund schemes in India permit investors to begin a SIP with as little as ₹500 per month. Select index funds and micro-SIP options even allow contributions starting from ₹100 per month, making wealth creation accessible to every income level.
No. Mutual fund SIPs invest in equity shares, corporate bonds, or government securities whose prices fluctuate daily. While long-term investments in diversified equity funds over 7–10+ years have historically delivered inflation-beating 12%–15% returns in India, capital returns are never legally guaranteed.
Yes. Open-ended mutual funds provide complete liquidity. You can pause your SIP for a few months, permanently cancel future auto-debits, or increase your monthly contribution amount without incurring any penalty from the fund house.
For equity mutual funds held for more than 12 months, capital gains exceeding ₹1.25 Lakh per financial year are taxed as Long-Term Capital Gains (LTCG) at 12.5%. Units redeemed within 12 months are taxed as Short-Term Capital Gains (STCG) at 20%. Each individual SIP installment has its own 12-month holding clock.
Yes. Click the Download Schedule (CSV) button above the compounding table to export the full annual breakdown into a spreadsheet file compatible with Microsoft Excel, Google Sheets, and Apple Numbers.