What is a Systematic Investment Plan (SIP)?

A SIP is a method of investing a fixed amount in a mutual fund at regular intervals (monthly, quarterly). It automates investing, benefits from rupee cost averaging, and harnesses the power of compounding. SIPs are the most popular investment vehicle in India.

What is a realistic SIP return rate for India?

Nifty 50 index funds have historically delivered 12–14% CAGR over 10+ years. Large-cap funds average 11–12%, mid-cap funds 13–15%, and small-cap funds 15–18% (with higher risk). For conservative planning, use 10–12%.

What is a Step-Up SIP?

A Step-Up SIP (or SIP Top-Up) automatically increases your SIP amount each year by a fixed percentage. For example, starting a ₹5,000/month SIP with 10% annual step-up means you invest ₹5,500 in year 2, ₹6,050 in year 3, and so on — significantly boosting your final corpus.

SIP Calculator 2025 — Mutual Fund Returns & Step-Up SIP India

This SIP calculator computes your mutual fund investment returns using the standard SIP formula. Select from popular India presets — Nifty 50 index (12% p.a. historical CAGR), large-cap funds (11%), mid-cap funds (14%), or small-cap funds (16%). The step-up SIP option lets you model an annual increase in your monthly investment, which dramatically increases your final corpus. Results show your total invested amount, estimated returns, and final maturity value year by year.

📊 SIP Details

Fund Category Preset

Monthly SIP Amount

₹

Expected Annual Return

Investment Period 15 years

Annual Step-Up (SIP Top-Up)

%/yr

Increase monthly SIP by this % each year (0 = fixed SIP)

Live Preview

Maturity Value —

📊

Enter your SIP amount and click Calculate to see how your investments grow.

How SIP Returns Are Calculated

FV = P × [((1 + r)^n − 1) / r] × (1 + r)

Where P = monthly SIP amount, r = monthly rate (annual rate ÷ 12 ÷ 100), n = total months. This is the future value of a series of equal payments (annuity-due). The extra (1+r) factor accounts for each payment being made at the start of the period.

Frequently Asked Questions

The Nifty 50 has delivered approximately 12–14% CAGR over the past 10–15 years (as of 2025). However, this includes significant volatility — the index has seen drops of 30–55% in 2008 and 2020. SIP investing smooths this volatility through rupee cost averaging.

You can start a SIP with as little as ₹500/month in many mutual funds. A common guideline is to invest at least 20% of your monthly take-home pay. As income grows, use a step-up SIP to increase contributions annually — even a 10% annual step-up dramatically increases long-term wealth.

SIP is better for regular investors as it removes market timing risk via rupee cost averaging. Lump sum can outperform SIP in consistently rising markets. For most retail investors with regular income, SIP is the recommended approach. Our calculator shows SIP outcomes; use the compound interest calculator for lump sum comparisons.

SIP Calculator — Systematic Investment Plan

How SIP Returns Are Calculated

Frequently Asked Questions

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