How does a SIP work?
You choose an investment amount and a frequency, such as ₹5,000 every month.
The amount is invested according to the investment product you select.
Over time, your contributions and the returns generated on them can build a larger portfolio.
Why do people use SIPs?
Regular investing can make it easier to follow a long-term investment habit.
A fixed contribution means you do not have to decide how much to invest every month from scratch.
When the investment value fluctuates, regular contributions can result in purchasing at different prices over time.
What affects the future value of a SIP?
The main variables are the contribution amount, investment frequency, assumed annual return, investment duration and any increase in the contribution.
A longer investment period can make compounding more significant, but actual investment returns are not guaranteed.
Example
Suppose you invest ₹5,000 per month for 15 years and use an assumed annual return of 10% for illustration. The calculator can estimate the total amount invested and the potential future value. The result is an estimate, not a guaranteed return.
SIP calculator
Use our SIP calculator to test different investment amounts, durations, assumed returns and annual step-up contributions.