Investment SIP Calculator

Plan your financial future with our powerful Systematic Investment Plan calculator. Discover how small, regular investments can grow into significant wealth over time.

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SIP Calculator

Total Investment
₹6,00,000
Amount you will invest
Estimated Returns
₹5,61,939
Wealth gain from your investment
Future Value
₹11,61,939
Total value of your investment

Investment Growth Visualization

SIP Investment Guide

What is SIP?

A Systematic Investment Plan (SIP) is an investment method offered by mutual funds that allows you to invest small amounts regularly (monthly, quarterly) rather than lump sums. It helps in rupee cost averaging and compounding returns over time.

Benefits of SIP

  • Disciplined approach to investing
  • Power of compounding over long term
  • Rupee cost averaging reduces market timing risk
  • Flexibility to start with small amounts
  • Convenient automatic investments

How SIP Returns are Calculated

SIP returns are calculated using the compound interest formula adjusted for periodic investments. The formula accounts for each installment growing at the expected rate for its specific time period in the market.

The formula used is: FV = P × [{(1 + r)^n - 1} / r] × (1 + r) where P is periodic investment, r is periodic rate of return, and n is total number of periods.

SIP Investment Strategies

  1. Start Early: Even small amounts grow significantly over long periods
  2. Increase SIP Amount: Raise your investment by 10% annually
  3. Diversify: Invest across different fund categories
  4. Long-term Focus: Stay invested for at least 7-10 years
  5. Rebalance: Review and adjust your portfolio annually

Things to Consider

While SIPs are excellent wealth builders, remember:

  • Past performance doesn't guarantee future returns
  • Equity investments carry market risks
  • Choose funds based on your risk appetite
  • Higher returns usually come with higher volatility
  • Consider tax implications of your investments

Frequently Asked Questions

How does SIP differ from lump sum investment?
SIP allows you to invest smaller amounts regularly (like monthly) while lump sum is a one-time large investment. SIP helps average out purchase costs and reduces the impact of market timing. Lump sum works better when markets are low and expected to rise.
Most mutual funds allow you to start SIPs with as little as ₹500 per month. Some funds may have higher minimums (₹1000 or ₹5000). There's no upper limit - you can invest according to your financial capacity.
Yes, SIP investments in open-ended funds can be redeemed anytime. However, equity funds typically have exit loads (fees) if withdrawn within 1 year. For best results, stay invested for the long term (5+ years) to ride out market volatility.
Consider these factors: 1) Your financial goal (short, medium, long term), 2) Risk tolerance, 3) Required returns, 4) Fund performance history, 5) Expense ratio. Diversify across large-cap, mid-cap, and sectoral funds based on your risk profile.
No, SIP returns are not guaranteed except in certain debt-oriented products. Equity SIP returns depend on market performance. However, historically, equity SIPs over 7+ years have provided inflation-beating returns in most market conditions.
Review performance annually, but avoid frequent changes. Check if: 1) Fund consistently underperforms its benchmark, 2) There are significant changes in fund management, 3) Your financial goals or risk appetite change. Don't react to short-term market movements.

About TodayBestLegitWays.com

TodayBestLegitWays.com is dedicated to providing reliable, accurate financial tools and information to help individuals make informed investment decisions. Our SIP calculator is designed to give you realistic projections to plan your financial future.

We believe in transparent, ethical financial guidance without any hidden agendas. All our tools are free to use, with no registration required.

Note: This calculator provides estimates only. Actual returns may vary based on market conditions. Consult with a certified financial planner before making investment decisions.