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See exactly how much your ₹1000 monthly investment will grow. See how your monthly investments grow with the power of compounding.
| Year | Invested | Returns | Total Value |
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A ₹1,000 monthly SIP is the entry ticket to equity investing in India. It’s the minimum most mutual fund houses accept, it fits comfortably inside a ₹25,000–₹40,000 monthly take-home, and it’s low enough that you can hold through a bear market without stress. The counterintuitive truth: at 12% annualised returns (Nifty 50’s long-term SIP average), your ₹1,000/month contribution grows disproportionately over time because compounding rewards the years, not the amount.
Notice how the last decade contributes ~₹25 lakh — more than the first two decades combined. This is the compounding curve most first-time investors underestimate.
For a ₹1,000 SIP, expense ratio matters more than fund manager alpha because absolute costs eat into small contributions faster. Nifty 50 or Nifty Next 50 index funds (expense ratio typically 0.10–0.30%) are the cleanest default. Avoid multiple funds at this ticket size — splitting ₹1,000 across 3 funds means ₹333 each, which triggers minimum-investment issues at some AMCs and dilutes the compounding effect. Add a second fund only after your monthly SIP crosses ₹5,000.
Stopping the SIP during a market crash is the single biggest wealth destroyer. During the March 2020 COVID crash, investors who paused their SIPs missed the recovery and locked in losses; those who continued added units at 40% discount. Frequent fund switching is the second killer — every switch resets your exit load window and can trigger short-term capital gains tax at 20% (revised from 15% in Budget 2024). Stay disciplined; increase the amount annually via SIP step-up rather than switching funds.
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals — typically monthly. SIPs let you build wealth through rupee cost averaging and the power of compounding: you buy more units when prices are low and fewer when prices are high, smoothing out market volatility over time.
This calculator uses the standard SIP future value formula:
M = P × [ (1 + r)ⁿ − 1 ] / r × (1 + r)
Where P = monthly investment amount, r = monthly rate of return (annual rate ÷ 12), n = total number of months (years × 12), and M = maturity value. Returns are compounded monthly.
Historical Nifty 50 SIP returns have averaged 12–14% per year over 10+ year periods. Equity mutual funds (large-cap) typically target 10–13% annually. Debt funds are more conservative at 6–8%. Use 12% as a realistic baseline for long-term equity SIPs. Past performance does not guarantee future returns.
SIP invests a fixed amount every month regardless of the market level, reducing timing risk. Lump sum investing puts all capital in at once, which can outperform in rising markets but carries more short-term risk. For most salaried investors, SIP is the recommended approach.
© 2026 GetNiftyReady. All tools are for educational purposes only.
Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
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