SIP Calculator

Formula

Worked Example

Investing Rs. 10,000 at the start of every month for 10 years at an expected 12% a year gives about Rs. 2,323,390.76: Rs. 1,200,000 invested and Rs. 1,123,390.76 of growth.

How to Interpret the Result

A systematic investment plan (SIP) buys more fund units when prices are low and fewer when they are high. Fund returns vary from year to year, so the projection is only as good as the return you assume. Check the fund's expense ratio and its record against its benchmark.

Common Mistakes

Stopping contributions when markets fall, which is when each rupee buys the most units. Assuming a past return will repeat. Ignoring fees and sales loads. Putting money you need within a year or two into an equity fund.