SIP & Compound Wealth Calculator
Calculate your future maturity wealth from monthly mutual fund investments. Factor in annual step-up salary hikes and real inflation purchasing power.
Year-by-Year Wealth Accumulation Schedule
Watch the compound curve steepen over time as interest starts earning interest on itself:
| Year | Invested (₹) | Estimated Gain (₹) | Closing Wealth (₹) |
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How the Power of Compounding Works in Mutual Fund SIPs
A Systematic Investment Plan (SIP) works through Rupee Cost Averaging and compounding. When the equity market drops, your fixed monthly allocation buys more mutual fund units (at lower NAV). When the market rebounds, the value of those accumulated units surges.
Where P is your periodic monthly installment, i is the monthly compounded rate of return ((Annual Rate ÷ 100) ÷ 12), and n is the total count of monthly installments.
Capital Gains Tax Rules for Equity Mutual Funds in India
Gains up to ₹1.25 Lakhs per financial year are 100% tax-free. Any long-term gains exceeding ₹1.25L are taxed at a flat 12.5% without indexation.
Units redeemed within 1 year are classified as short-term capital gains and taxed at a flat rate of 20% plus applicable surcharge and cess.
Frequently Asked Questions
What is the difference between SIP and Lumpsum? ▼
A lumpsum is a single one-time upfront investment (ideal when you receive a bonus or windfall). A SIP spreads your investments every month, insulating you from timing the stock market through rupee cost averaging.
Can I modify or pause my SIP anytime? ▼
Yes. Unlike recurring deposits (RDs) or insurance plans, mutual fund SIPs carry zero penalty for pausing, modifying installment dates, or stopping your SIP at any time.