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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 ₹25,000 monthly SIP typically fits salaried professionals earning ₹1.5–3 lakh/month or dual-income households in metros. At this ticket size you’re past the “starter” stage: expense ratios matter less in percentage terms, tax planning becomes central, and diversification across fund categories starts to make real difference. This is often the SIP amount at which people first cross the ₹1 crore corpus milestone.
Under the current LTCG regime (Budget 2024), equity mutual fund gains above ₹1.25 lakh per financial year are taxed at 12.5% (up from 10%). A ₹25,000 SIP crosses this threshold in year 4–5 in most equity funds, meaning some tax planning starts to matter. Consider:
A defensible three-fund split at this ticket size: ₹12,500 to a Nifty 50 or Nifty Next 50 index fund (core, low-cost), ₹7,500 to a diversified flexi-cap or multi-cap fund (active alpha), and ₹5,000 to a mid-cap or small-cap fund (higher risk, higher long-term return potential). Avoid international funds for the mid/small-cap allocation — capital gains tax treatment on foreign funds changed in 2024 and no longer benefits from equity taxation.
The single most powerful lever at this level is not fund selection — it’s an annual 10% SIP step-up. A ₹25,000 SIP stepped up 10% annually for 20 years reaches roughly ₹4.8 crore at 12% returns, versus ₹2.5 crore for a static SIP. Most AMCs let you configure a step-up SIP at the mandate level so you don’t have to remember each April.
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.
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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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