A Systematic Investment Plan (SIP) calculator helps you estimate the future value of your investments based on regular contributions. Use our calculator to plan your financial goals with precision and make informed investment decisions.
Fixed amount invested at regular intervals (monthly, quarterly) over a long period, ideal for disciplined wealth creation.
Allows investors to increase their investment amount periodically as their income grows, maximizing returns over time.
Provides flexibility to adjust investment amounts or skip installments based on financial situations without penalties.
Investments triggered by market conditions or predefined events, helping to capitalize on market opportunities automatically.
A Systematic Investment Plan (SIP) is an investment method that allows you to invest a fixed amount regularly in mutual funds. Instead of making a lump sum investment, SIP enables you to invest small amounts periodically (weekly, monthly, or quarterly), helping to build wealth over time through disciplined investing.
Rupee cost averaging is a key benefit of SIP investing. When you invest a fixed amount regularly, you buy more units when prices are low and fewer units when prices are high. This averaging effect reduces the impact of market volatility on your overall investment and potentially lowers the average cost of your investment over time.
Most mutual funds allow you to start a SIP with as little as ₹500 per month. This low entry barrier makes it accessible for beginners and young investors to start their investment journey. Some specialized funds might have higher minimum requirements, but typically, SIPs are designed to be affordable for the average investor.
Yes, SIPs offer flexibility. You can modify your investment amount, change the frequency, pause your SIP temporarily, or stop it altogether. Most fund houses require a notice period of 15-30 days to process such requests. This flexibility makes SIPs suitable for individuals whose income may vary or who might face financial constraints temporarily.
SIPs invested in Equity Linked Savings Schemes (ELSS) qualify for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per financial year. ELSS funds have a lock-in period of 3 years, which is the shortest among all tax-saving investments under Section 80C. The returns from SIPs are subject to capital gains tax as per prevailing tax laws.
SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method, which considers the timing and amount of each investment. This gives a more accurate picture than simple interest calculations because SIP involves multiple investments at different times. Our SIP calculator uses this method to provide you with realistic projections of your potential returns.
Designed With By Twinfinity DigiTech Solutions Pvt.Ltd.