Understanding Your SIP Investment
Systematic Investment Plans (SIPs) are one of the most effective ways to build wealth in India. By investing a fixed amount regularly, you benefit from Rupee Cost Averaging and the power of compounding.
How this Calculator Works
This tool uses the standard compound interest formula for annuities. We assume your investment is made at the beginning of each period (month).
Key Benefits
- Discipline: Automates your savings habit.
- Flexibility: Start with as little as ₹500.
- Compounding: Interest on interest accelerates growth over 10+ years.
Is SIP better than Lumpsum?
For salaried individuals, SIP is generally better as it reduces market timing risk. Lumpsum is preferred when you have a large disposable amount to invest during market lows.
Are SIP returns taxable?
Yes. Equity mutual funds held for >1 year attract 10% LTCG tax on gains above ₹1 Lakh. Debt funds are taxed as per your income slab.