About sip calculator
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. The calculator projects what it could grow into at an assumed return.
Formula
Maturity = P × (((1 + i)ⁿ − 1) ÷ i) × (1 + i), where P is the monthly amount, i the monthly return and n the number of months. ₹10,000 a month for 10 years at 12% a year gives about ₹23.2 lakh on ₹12 lakh invested.
Why SIPs work for many people
- They build the habit of regular saving.
- Buying across market ups and downs averages the purchase cost (rupee cost averaging).
- You can start with a small amount.
Remember
Mutual fund returns are not guaranteed and can be negative, especially over short periods. Read the scheme documents and match the fund to your goal and risk.
