Maturity Amount
| Year | Invested (Cumulative) | Estimated Returns | Total Value |
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Step-up SIP Calculator
See how increasing your SIP amount every year (e.g. with your salary increment) boosts your final maturity value.
What is SIP?
SIP (Systematic Investment Plan) lets you invest a fixed amount regularly in mutual funds, helping you build wealth over time through compounding and disciplined investing.
Formula used: M = P × [(1+i)^n − 1] / i × (1+i), where P is monthly investment, i is monthly rate of return, and n is number of months.
Tips to grow your SIP returns
- Start early — even a small SIP started early can outgrow a larger SIP started late, thanks to compounding.
- Increase your SIP amount every year using the step-up feature above, in line with your income growth.
- Stay invested through market ups and downs rather than stopping SIPs during downturns.
- Review your fund's performance annually, but avoid frequent switching based on short-term movements.
Frequently Asked Questions
Equity mutual funds have historically delivered 10-14% annualized returns over long periods, though actual returns vary by fund and market cycle. A conservative 10-12% is safer for long-term planning.
A Step-up SIP increases your monthly investment by a fixed percentage every year, typically matching salary increments. This significantly boosts the final maturity amount compared to a flat SIP.
Yes, SIPs can usually be paused or stopped anytime through your mutual fund platform without penalty, though stopping early reduces the compounding benefit.
SIP spreads investment across market cycles and reduces timing risk through rupee cost averaging, making it generally less risky for most retail investors compared to lump sum investing.
No, SIP returns are market-linked and not guaranteed. Mutual fund investments are subject to market risk and actual returns depend on fund and market performance.
SIP maturity is calculated using M = P x [(1+i)^n - 1] / i x (1+i), where P is monthly investment, i is monthly rate of return, and n is total number of installments.
Yes, gains from equity mutual fund SIPs are subject to capital gains tax, with the rate depending on the holding period of each installment and prevailing tax rules.