Calculate your Mutual Fund SIP returns and maturity value
Increase your SIP amount by a fixed percentage every year to match income growth.
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps build wealth over time through disciplined investing and benefits from rupee cost averaging, where you buy more units when prices are low and fewer when prices are high.
In SIP, each monthly installment earns returns which are reinvested. Over time, you earn returns on your returns (compounding). The longer you stay invested, the more powerful the compounding effect becomes. For example, a ₹5,000 monthly SIP at 12% for 20 years grows to over ₹49 Lakh, while your total investment is only ₹12 Lakh.
Step-up SIP (also called Top-up SIP) is a feature where you increase your SIP amount by a fixed percentage every year. For example, if you start with ₹5,000 and set a 10% annual step-up, your SIP becomes ₹5,500 in year 2, ₹6,050 in year 3, and so on. This helps your investments grow in line with your income.
SIP is better for salaried individuals who invest regularly from monthly income. It reduces timing risk through rupee cost averaging. Lumpsum is better when you have a large amount ready and markets are at attractive valuations. In volatile markets, SIP typically outperforms lumpsum due to averaging. For long-term wealth creation, a combination of both works best.