Indian Mutual Fund SIP Calculator
Simulate how modest monthly systematic investments compound exponentially into multi-lakh and crore corpuses over time.
The Extended Period Compounding Multiplier USP
See the massive wealth explosion when you hold your investments just 3 to 5 years longer!
Year-by-Year Compounding Amortization Table
| Year | Annual Investment (₹) | Total Invested (₹) | Growth / Interest (₹) | End of Year Balance (₹) |
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Understanding Systematic Investment Plans (SIP) in India
A Systematic Investment Plan (SIP) is a disciplined investment methodology where you invest a fixed amount regularly (typically monthly) into a chosen mutual fund scheme. Rather than attempting to time volatile market peaks and troughs, SIP leverages Rupee Cost Averaging to accumulate more units when prices are down and fewer units when markets rise.
The SIP Mathematical Formula
Where FV is Future Value, P is monthly installment amount, i is periodic rate of interest (Annual CAGR ÷ 1200), and n is the total number of monthly payments.
Taxation Rules on Equity SIPs (Current Law FY 2026-27)
Every monthly SIP installment is treated as an independent investment with its own distinct holding period:
- Long-Term Capital Gains (LTCG): Units held for more than 12 months are taxed at 12.5% on gains exceeding ₹1.25 Lakh per financial year (under the revised Indian tax framework).
- Short-Term Capital Gains (STCG): Units redeemed before 12 months are taxed at a flat rate of 20%.
- First-In First-Out (FIFO): When you redeem, the oldest accumulated units are redeemed first, minimizing short-term capital gains liability.
Frequently Asked Questions
Clear answers to common questions on formulas, taxation, and investing strategy.
Q1. What is the minimum amount required to start a monthly SIP in India?
Most Indian mutual fund schemes permit SIPs starting at just ₹500 per month, with select micro-SIP initiatives allowing as low as ₹100 or ₹250 per month.
Q2. Can I pause, increase, or stop my SIP at any time without penalty?
Yes! Mutual fund SIPs offer complete liquidity and flexibility. You can pause an active mandate or stop future debits without paying any exit fines or cancellation charges.
Q3. Why does extending my SIP by 3 to 5 years result in massive wealth gain?
Compounding is heavily back-loaded. During the initial years, your accumulated corpus is small, so interest earned is modest. In later years, you earn interest on a vast base of previously accumulated compounding returns.
Q4. Does ApnaMutualFund.com charge any fee for starting an SIP?
Zero! ApnaMutualFund.com is an AMFI-registered Mutual Fund Distributor. Retail investors pay zero consultation fees.
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Turn Calculations into Real Financial Freedom
Calculators provide mathematical estimates, but consistent wealth creation requires choosing the right high-performing diversified schemes, tracking annual alpha, and disciplined rebalancing.