SIP Calculator Pro
Plan your financial future with systematic investments. Calculate returns, adjust for inflation, and visualize your wealth growth over time.
Investment Results
Maturity Value
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Inflation Adjusted
Yearly Breakdown
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SIP Investment FAQs
Get answers to commonly asked questions about Systematic Investment Plans
A Systematic Investment Plan (SIP) is an investment strategy offered by mutual funds where investors can invest a fixed amount regularly (monthly, quarterly, etc.) rather than making a lump-sum investment. SIPs allow investors to benefit from rupee cost averaging and the power of compounding over time.
SIPs spread investments over time, reducing the impact of market volatility through rupee cost averaging. Lump-sum investments put all your money in at once, which can be riskier if the market is at a peak. SIPs are generally recommended for long-term wealth creation as they encourage disciplined investing regardless of market conditions.
Equity-linked SIPs held for more than one year qualify for Long-Term Capital Gains (LTCG) tax of 10% on gains exceeding ₹1 lakh per financial year. For debt funds, gains are taxed based on your income tax slab if redeemed before 3 years. After 3 years, gains are taxed at 20% with indexation benefits. ELSS (Equity Linked Savings Scheme) SIPs offer tax deductions under Section 80C of up to ₹1.5 lakh per year.
Inflation reduces the purchasing power of money over time. When calculating real returns, you must subtract the inflation rate from your nominal returns. For example, if your SIP returns 12% annually but inflation is 6%, your real return is only 6%. This is why it's important to consider inflation-adjusted returns when planning long-term financial goals.
Yes, most mutual funds allow you to increase your SIP amount through a "Step-up SIP" feature. You can also decrease or pause your SIPs, though some funds may have restrictions. You can even switch between funds or redirect your SIP to another scheme. However, it's generally advisable to maintain consistency in your SIP investments for optimal results.
The ideal SIP amount depends on your financial goals, risk tolerance, and current financial situation. A common rule is to invest at least 20% of your monthly income. However, you should calculate based on specific goals like retirement, children's education, or home purchase. Our SIP calculator can help you determine how much you need to invest monthly to reach your financial targets.