SIP Calculator
See how your monthly mutual fund SIP investment grows over time. Visualize the power of compounding with invested amount vs. estimated returns.
Frequently Asked Questions
What is SIP investment?
SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund at regular monthly intervals. Instead of timing the market with a large sum, SIP lets you invest small amounts consistently, benefiting from rupee cost averaging. When markets fall, your fixed contribution buys more units; when markets rise, those units gain value. Over long periods, this disciplined approach has historically been one of the most effective wealth-building tools available to Indian retail investors.
What is a good monthly SIP amount to start with?
Many SEBI-registered mutual funds in India allow SIPs starting from ₹100 or ₹500 per month. A practical benchmark for salaried professionals is 10–15% of monthly take-home income. If you earn ₹50,000/month, a ₹5,000–₹7,500 SIP is a sensible starting point. What matters more than the initial amount is consistency — starting early and staying invested through market cycles creates far more long-term wealth than starting large and stopping during downturns.
How is SIP different from lump sum investment?
A lump sum investment puts your entire corpus into the market at once, making your entry point critical. SIP, by contrast, spreads investment over time and averages your purchase cost across market levels — this is rupee cost averaging. SIP suits salaried individuals building corpus gradually, and it reduces the risk of investing at a market peak. Lump sum can outperform SIP in strongly rising markets, but SIP is less stressful and better aligned with long-term goal-based financial planning.