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Mutual Fund SIP Calculator + Investment Guide
Plan Your Investment | Calculate Returns | Build Long-Term Wealth
Introduction
Investing in Mutual Funds through SIP (Systematic Investment Plan) is one of the smartest ways to build wealth, create financial stability, and achieve long-term goals such as education, home purchase, retirement, or emergency savings. SIP works by investing a fixed amount every month, allowing the power of compounding to grow money over time—even for beginners.
To maximize SIP benefits, every investor should understand how returns are calculated and how much to invest. This guide includes a SIP Calculator formula, examples, planning strategy, risk control tips, and how to select the right mutual fund.
What is SIP?
SIP is a system where you invest a fixed amount regularly—weekly, monthly, or quarterly—into a mutual fund.
Example: ₹1000 per month invested for 5 years.
Why SIP is Better Than Lump Sum
| SIP Advantage | Meaning |
|---|---|
| Rupee Cost Averaging | Buy more units in market fall & fewer when high |
| Compounding Growth | Money earns returns over returns |
| Low Risk | Controlled exposure |
| Flexible | Start small from ₹100 monthly |
| No Market Timing | Discipline investing |
How SIP Returns Are Calculated
SIP returns are computed using CAGR (Compounded Annual Growth Rate).
SIP Calculator Formula
Where:
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FV = Future Value
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P = Monthly investment amount
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r = Expected return rate (annual)
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n = Number of payments per year (12 for monthly SIP)
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t = Time period (years)
SIP Example Calculation
Example 1:
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Investment = ₹2000 per month
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Duration = 10 years
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Expected return = 12%
Result
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Total invested = ₹2,40,000
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Future value = approx ₹4,63,500+
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Profit = ₹2,23,500
Example 2:
₹5000/month for 15 years @12%
| Details | Amount |
|---|---|
| Total Invested | ₹9,00,000 |
| Future Value | ₹22,50,000 – ₹24,00,000 |
| Profit | ₹13–15 lakh |
SIP Return Table for Beginners
| Monthly SIP | 5 Years | 10 Years | 20 Years |
|---|---|---|---|
| ₹1000 | ₹82K | ₹2.30 L | ₹7.5 L |
| ₹2000 | ₹1.64 L | ₹4.60 L | ₹15 L |
| ₹5000 | ₹4.12 L | ₹11.50 L | ₹37.5 L |
| ₹10,000 | ₹8.24 L | ₹23 L | ₹75 L |
(Calculated at 12% CAGR approx.)
How to Choose the Right Mutual Fund
Checklist Before Investing
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Track 5–10 year performance
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Fund manager experience
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Low expense ratio
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Consistent returns vs benchmark
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AUM above ₹1000 Cr
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Compare fund rating (Value Research / MorningStar)
Types of Mutual Funds
| Category | Best For | Risk |
|---|---|---|
| Large Cap | Beginners, stability | Low-Moderate |
| Mid Cap | Growth | Moderate-High |
| Small Cap | Aggressive returns | High |
| Index Fund | Safe & passive | Low |
| Debt Fund | Senior / safe investors | Very Low |
| Hybrid | Balanced growth | Low-Medium |
Smart Investment Strategy for Beginners
1. SIP + Goal-based Plan
| Goal | Suggested SIP |
|---|---|
| Emergency Fund | ₹500–1000 |
| Education / Home | ₹3000–5000 |
| Retirement | ₹5000–10,000 |
2. Portfolio Diversification
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50% Index / Large Cap Fund
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30% Mid-Cap Fund
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20% Debt / Hybrid Fund
3. Increase SIP Every Year
Increase SIP by 10-15% annually → Massive long-term returns.
Risk Management
✔ Invest only long term (5–10+ years)
✔ Don’t stop SIP when market crashes
✔ Never invest loan money
✔ Review portfolio every 6 months
✔ Keep emergency fund separately
Mistakes to Avoid
❌ Selecting funds only based on returns
❌ Stopping investment due to market crash
❌ Investing in too many funds
❌ Expecting fast results
How to Track & Manage SIP
| Tool / App | Purpose |
|---|---|
| Groww | Investment & SIP |
| Zerodha Coin | Direct Mutual Funds |
| ET Money | Goal planner |
| Moneycontrol | Fund comparison |
Top Mutual Funds to Consider (2025)
(Example list – Do your research before investing)
| Category | Example Funds |
|---|---|
| Index | Nippon Nifty 50 Index, HDFC Index Fund |
| Large Cap | ICICI Bluechip, SBI Bluechip |
| Mid Cap | Kotak Emerging Equity |
| Small Cap | Nippon Small Cap |
| Hybrid | HDFC Balanced Advantage |
Conclusion
SIP is the simplest and most powerful way to achieve financial freedom. By investing a small amount every month and allowing compounding to work for years, ordinary people can build extraordinary wealth. The earlier you start, the greater your returns.
Start small, stay consistent, and let time grow your money.
Free SIP Calculator
Would you like:
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Excel SIP Calculator File
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PDF version
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Interactive Web Calculator Code (HTML + JS) ?
