SIP (Systematic Investment Plan) is the most popular way to invest in mutual funds in India. These scenarios show you exactly how different monthly investment amounts grow over time, assuming 12% annual returns - the long-term average of diversified equity mutual funds in India.

The maths behind every entry is the same SIP future-value formula: FV = P × ((1 + r)n − 1) / r × (1 + r), where P is the monthly contribution, r is the monthly rate (12% ÷ 12 = 1%), and n is the number of months. The result is sensitive to two levers - the monthly amount and the time you stay invested. Doubling the duration roughly quadruples the corpus; doubling the contribution only doubles it. That's why a ₹5,000 SIP over 20 years (~₹50 lakh) beats a ₹10,000 SIP over 10 years (~₹23 lakh), even though both invest ₹12 lakh of principal.

How to use these scenarios: find the monthly amount closest to what you can commit, then compare the 10-, 15-, and 20-year versions to see how staying invested longer changes the outcome. The maturity values shown are pre-tax - see the FAQ below for how LTCG affects the take-home figure.

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Frequently Asked Questions

What return rate do these SIP scenarios assume?

All scenarios use 12% annual returns compounded monthly. This is a long-term average for diversified equity mutual funds in India over 15+ years. Actual returns vary by fund category - large-cap funds typically return 10–12%, flexi-cap and mid-cap 12–14%, and small-cap funds can swing wider in either direction.

Which SIP duration should I plan for?

Equity SIPs need at least 7–10 years for compounding to outweigh market volatility. Browse the 10-year and 15-year scenarios first if you're investing for retirement, child education, or any goal more than a decade away. The 5-year scenarios are useful only as a benchmark - equity returns are unreliable over short horizons.

Are the maturity values shown post-tax?

No. The maturity figures are pre-tax. For equity mutual funds held over 12 months, long-term capital gains above ₹1.25 lakh per financial year are taxed at 12.5% (FY 2024–25 rules). Plan to subtract roughly 10–11% from the displayed gain when estimating what actually reaches your bank account.

Can I increase my SIP amount over time?

Yes - most fund houses allow a step-up SIP that auto-increases your contribution by a fixed percentage every year. A 10% annual step-up on a ₹10,000 SIP can roughly double the maturity value of a flat SIP over 20 years. The scenarios on this page assume a constant monthly amount for simplicity.

Want to Calculate with Your Own Numbers?

Every scenario uses standard assumptions. Use the calculator to input your exact figures.

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