pkminfotechSIP Calculator
Estimate mutual fund SIP returns and future wealth from your monthly investment.
Systematic Investment Plan (SIP) Masterclass: The Power of Compounding
Deep dive into SIP formulas, compound interest models, rupee cost averaging, and tax laws.
Investing in Mutual Funds via a Systematic Investment Plan (SIP) allows individuals to build long-term wealth progressively. By automating monthly contributions, you benefit from rupee cost averaging and compounding interest.
1. Mathematical Formula Behind SIP Calculations
• P = Monthly installment amount
• i = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
• n = Total number of months (Years × 12)
2. Mutual Fund Categories & Return Benchmarks
| Fund Category | Risk Profile | Expected Return (p.a.) | Ideal Horizon |
|---|---|---|---|
| Large-Cap Funds | Moderate | 11% - 13% | 3 to 5 Years |
| Flexi-Cap / Multi-Cap | Moderate-High | 12% - 14% | 5+ Years |
| Mid-Cap Funds | High | 14% - 16% | 5 to 7 Years |
| Small-Cap Funds | Very High | 16% - 18%+ | 7+ Years |
3. Mutual Fund Capital Gains Tax Rules
- Equity Funds LTCG: Gains on units held over 12 months exceeding ₹1.25 Lakh per financial year are taxed at 12.5% (Budget 2024 revised).
- Equity Funds STCG: Units redeemed within 12 months are taxed at 20%.
4. Frequently Asked Questions
Common SIP estimates
Use an assumed annual return to model scenarios. Mutual fund returns are market-linked and calculator results are not guaranteed.
Monthly SIP return calculator
Enter the monthly contribution, expected annual return and duration to estimate maturity value.
Future value of SIP
The result separates total money invested from estimated market gains over the selected period.
SIP with different return rates
Compare conservative, moderate and higher-return assumptions rather than treating one projection as certain.