FAQ & Guide
What is a SIP?
A Systematic Investment Plan (SIP) allows you to invest small amounts of money periodically into mutual funds. It is one of the best ways to create wealth over the long term because it instills financial discipline and uses the power of compounding.
How to use this calculator?
- Monthly Investment: The amount you want to save every month (e.g., ₹5,000).
- Expected Return: The annual interest rate you expect. Equity mutual funds typically deliver 12-15% over the long run.
- Time Period: The duration of your investment. The longer you stay invested, the higher the returns due to compounding.
- Step-Up: Use the "Booster" slider to see how increasing your SIP by just 5-10% every year can double your wealth.
Why should you start early?
Starting early gives your money more time to grow. For example, investing ₹5,000/month for 20 years at 12% returns yields ₹49 Lakhs. Delaying by just 5 years reduces this amount to ₹25 Lakhs—a loss of nearly 50%!