How a SIP grows
A Systematic Investment Plan puts a fixed amount into a mutual fund every month. Each instalment grows for the time it stays invested, so the effect of compounding builds over the years.
where P is the monthly amount, i the expected monthly return and n the number of months.
Example
₹10,000 a month for 10 years at an assumed 12% a year grows to about ₹23.2 lakh, of which ₹12 lakh is your own investment.
Keep in mind
- Mutual fund returns are market-linked and not guaranteed; the calculator assumes a steady return that real markets never give.
- Read the scheme documents and consider speaking to a SEBI-registered adviser.
- Build an emergency fund before long-term investing, and clear costly debt first.