What is SIP?

A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly, quarterly, etc.) instead of investing a lump sum. SIP encourages disciplined investing and helps investors benefit from rupee cost averaging and compounding.

Key benefits of SIP:

• Builds long-term wealth

• Reduces market timing risk

• Affordable (start from ₹100–₹500)

• Ideal for salaried investors

• Helps achieve goals like retirement, house, education

How SIP Calculator Works

The SIP calculator uses the compound interest formula to estimate future value based on:

• Monthly investment amount

• Expected annual rate of return

• Investment duration (years)

The longer you stay invested, the stronger the power of compounding becomes.

Example of SIP Investment

If you invest ₹5,000 per month for 15 years at an average return of 12% annually, you invest around ₹9,00,000 but your estimated value could grow beyond ₹25–30 lakhs, depending on market performance.

This demonstrates why SIP is one of the most powerful tools for long-term investors.

Advantages of Using SIP Calculator

• Quick financial planning

• Helps set realistic investment goals

• Compares different investment scenarios

• Useful for beginners and advanced investors

• Completely free and instant

FAQs 

Q1. What is the minimum amount for SIP investment?
Most mutual funds allow SIP starting from ₹100–₹500 per month.

Q2. Is SIP better than lump sum investment?
For most retail investors, SIP is safer because it reduces market timing risk and builds discipline.

Q3. Can SIP guarantee returns?
No. Mutual fund returns are market-linked. SIP helps manage volatility but does not guarantee profits.

Q4. What is the best duration for SIP?
A minimum of 5–10 years is recommended to benefit from compounding.

Q5. Can I modify or stop my SIP anytime?
Yes. SIPs are flexible. You can increase, decrease, pause, or stop anytime.