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Use this SIP calculator to estimate the future value of your monthly investments. Enter your SIP amount, expected return, investment duration, and inflation rate to see both the nominal returns and the real purchasing power over time.
What if you pause your SIP for a few months? See the corpus impact.
| Year | Monthly SIP | Total Invested | Total Value | Wealth Gain | Inflation-Adjusted |
|---|
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. It allows you to invest small amounts consistently, benefit from compounding, and reduce the impact of market volatility.
Inflation reduces the purchasing power of your money over time. Even if your investments grow nominally, the real value may be lower when adjusted for inflation. Incorporating inflation in planning helps maintain the actual value of your wealth.
| Monthly SIP | Years | Expected Return | Future Value |
|---|---|---|---|
| ₹5,000 | 10 | 12% | ₹11.6L |
| ₹10,000 | 15 | 12% | ₹50L+ |
| ₹15,000 | 20 | 12% | ₹1Cr+ |
| ₹20,000 | 25 | 12% | ₹3.7Cr+ |
Fixed Deposits (FD) are India's most trusted savings instrument, while SIP (via mutual funds) is the fastest-growing wealth-creation route. Here is a head-to-head comparison across the factors that matter most to investors:
| Factor | SIP (Equity Mutual Fund) | Fixed Deposit (Bank) |
|---|---|---|
| Typical Returns | 10–14% p.a. (market-linked; not guaranteed) | 6.5–7.5% p.a. (fixed, guaranteed) |
| Capital Safety | Not guaranteed — NAV can fall | Guaranteed up to ₹5 lakh (DICGC insured) |
| Inflation Beating | Yes — equity historically beats 6–7% inflation | Often no — real return can be near zero after tax |
| Minimum Amount | ₹500/month via SIP | Usually ₹1,000 lumpsum |
| Liquidity | High — redeem anytime (ELSS has 3-yr lock-in) | Penalty on premature withdrawal (0.5–1%) |
| Tax on Gains | LTCG 12.5% above ₹1.25 lakh/year (equity) | Interest taxed at your income slab rate |
| Tax-saving Option | ELSS SIP — 80C deduction up to ₹1.5 lakh | 5-year tax-saver FD — 80C deduction up to ₹1.5 lakh |
| Power of Compounding | Very strong over 10+ years with reinvested gains | Moderate — compounded quarterly |
| Volatility | High short-term swings; smooths out over 7–10 years | Zero — returns are predictable |
| Best suited for | Long-term goals: retirement, education (5+ yrs) | Short-term safety: emergency fund, 1–3 yr goals |
Verdict: For goals more than 5 years away, SIP in diversified equity mutual funds has historically delivered superior inflation-adjusted returns. For short-term needs or capital preservation, FDs remain a safer, reliable choice. Many financial planners recommend holding both in a portfolio.
Yes, you can start SIPs with as little as ₹500 per month depending on the mutual fund.
No, returns depend on the market performance of the mutual fund. SIP reduces risk but does not guarantee returns.
It's recommended to review your SIP annually to adjust for changes in financial goals or market conditions.
Inflation erodes the real value of returns. Using inflation-adjusted calculators helps plan for the actual future purchasing power.