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A Systematic Investment Plan (SIP) is a way to invest a fixed amount in a mutual fund at regular intervals — usually every month — instead of putting in a large lump sum all at once. For most Indian investors, a SIP is the simplest and most disciplined route to building long-term wealth out of a regular salary. You choose the amount (from as little as ₹500), the frequency, and the fund, and the investment happens automatically on a date you pick.
Two forces do the heavy lifting. The first is rupee cost averaging: because you invest the same amount every month, you automatically buy more units when the market is low and fewer when it is high, which smooths out your average purchase price over time. The second is compounding: the returns your money earns are reinvested and go on to earn returns of their own. Over 10–20 years, compounding is what turns modest monthly contributions into a large corpus.
Suppose you invest ₹5,000 every month for 10 years at an assumed 12% annual return:
Total invested: ₹6,00,000 • Estimated corpus: ≈ ₹11.6 lakh • Returns earned: ≈ ₹5.6 lakh. Add a 10% annual step-up and the same starting SIP can grow substantially larger, because each year's contribution is higher than the last.
Returns shown are illustrative. Actual mutual fund returns are market-linked and not guaranteed.
Set your monthly amount, expected annual return, and investment period using the sliders above. Add an annual step-up percentage if you plan to increase your SIP over time. The calculator instantly shows your total invested amount, estimated returns, final corpus, and effective CAGR, along with a year-by-year growth chart.
Neither is universally better. A SIP suits people investing from a regular income and works well in volatile or uncertain markets, while a lumpsum can do better when markets rise steadily from your entry point. If you have a large amount ready, compare both using our SIP vs Lumpsum calculator before deciding.
Indian equity funds have historically delivered returns in the broad range of 10–12% annually over long periods, though this varies significantly and is never guaranteed. Debt fund returns have historically been lower with less volatility, though they carry their own risks and are not risk-free. Many investors use a hypothetical figure like this for planning purposes rather than assuming a specific outcome.
Yes. A SIP invests in market-linked mutual funds, so your value can fall in the short term. A longer horizon gives an investment more time to experience different market conditions, while periodic investing spreads purchases across different entry prices. Neither eliminates market risk or guarantees a positive outcome.
A step-up (or top-up) SIP increases your monthly contribution automatically each year — for example by 10% — to keep pace with your rising income. Because later contributions are larger and still get years to compound, even a small annual step-up can meaningfully increase your final corpus.
