SIP Calculator

This SIP calculator allows you to calculate the amount you will accumulate on your monthly investment.

Calculate the future value of your SIP investment




? 5,000

5 Years

12%

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan, commonly known as SIP, is a disciplined method of investing a fixed amount of money at regular intervals into mutual funds. Rather than investing a lump sum all at once, SIP allows you to spread your investments over time, making it easier to build wealth gradually without straining your monthly budget. It is one of the most popular investment strategies for salaried professionals and first-time investors in India.

The beauty of SIP lies in two powerful concepts: rupee cost averaging and the power of compounding. Rupee cost averaging means you buy more mutual fund units when prices are low and fewer when prices are high, which averages out your overall cost per unit over time. Compounding ensures that the returns you earn generate their own returns, creating a snowball effect that significantly grows your wealth over longer periods.

Starting a SIP is simple and requires no deep financial expertise. You can begin with as little as Rs 500 per month through any mutual fund house or investment platform. Whether your goal is buying a home, funding your child's education, building a retirement corpus, or simply growing your savings, SIP provides a flexible, low-risk entry point into the world of equity and debt markets.

How Does SIP Work?

1

Choose a Fund

Select a mutual fund based on your financial goals, risk appetite, and investment horizon. Options include equity, debt, and hybrid funds suited to different investor profiles.

2

Set Amount and Date

Decide how much to invest each month and choose an auto-debit date. The amount is automatically debited from your bank account, making the process completely hassle-free.

3

Units Allocated

Each month, mutual fund units are purchased at the prevailing NAV. When markets dip, you get more units. When markets rise, your existing units appreciate in value.

4

Watch It Grow

Over time, compounding works its magic. Your investments grow exponentially as returns generate their own returns. Track performance and redeem anytime without penalties.

What is a Systematic Investment Plan (SIP)?

A Systematic Investment Plan (SIP) is a disciplined method of investing a fixed amount regularly into mutual funds. Rather than investing a lump sum, SIP lets you build wealth gradually without straining your budget. It is one of the most popular investment strategies for salaried professionals and first-time investors in India. The approach is simple, flexible, and effective for all income levels.

SIP works through two key concepts: rupee cost averaging and compounding. Rupee cost averaging means you buy more mutual fund units when prices are low and fewer when high, averaging your cost per unit over time. Compounding ensures returns earn their own returns, creating exponential wealth growth. The earlier you start and the longer you stay invested, the more powerful these effects become for your financial future.

You can start a SIP with as little as Rs 500 per month through any AMFI-registered mutual fund. Whether your goal is a home, child education, retirement, or emergency corpus, SIP is the most accessible and risk-managed entry point into the world of investing.

SIP Benefits at a Glance

Disciplined Investing

SIP automates your investments, building a saving habit without requiring active decisions every month. Set it and let it grow.

Rupee Cost Averaging

Buy more units when prices are low, fewer when high. Automatically reduces the impact of market volatility on your portfolio.

Power of Compounding

Returns earn their own returns, creating exponential wealth growth. Start early to maximize the compounding effect over your investment horizon.

Complete Flexibility

Increase, pause, or stop your SIP anytime. No lock-in for most open-ended funds. You stay in full control of your investments.

Tax Benefits (ELSS)

ELSS SIPs qualify for Section 80C deduction up to Rs 1.5 lakh per year, helping you save tax while building long-term wealth.

Low Minimum Investment

Start with as little as Rs 500 per month. SIP makes wealth creation accessible to everyone regardless of income level or experience.

SIP - Frequently Asked Questions

Most mutual fund companies in India allow you to start a SIP with as little as Rs 500 per month. Some fund houses even offer SIPs starting at Rs 100. The low entry barrier makes SIP accessible to students, young professionals, and anyone looking to begin their investment journey.

Yes, you can stop, pause, or modify your SIP at any time without any penalty for most open-ended mutual fund schemes. However, ELSS funds have a mandatory three-year lock-in period per installment.

SIP is generally better for most retail investors because it eliminates the need to time the market. With rupee cost averaging, you naturally buy more units during market dips and fewer during peaks, reducing overall risk and emotional decision-making.

No, SIP returns are not guaranteed as they are linked to market performance. Historical data shows that equity SIPs held for seven years or more have rarely delivered negative returns, making long-term discipline the key to success with systematic investment plans.

The best fund depends on your goals and risk tolerance. For long-term wealth creation, large-cap or flexi-cap equity funds are popular. For tax saving, ELSS funds offer Section 80C deductions. For conservative investors, balanced advantage or debt funds provide stability. Our advisors at Investosure can help you select the right fund.