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Plan your wealth with Step-up SIPs, inflation adjustment, and goal planning.
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Expected Maturity Value
Total Invested
$600,000
Total Wealth Gained
+$561,695
Wealth Split
600K
+562K
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Master Your Wealth with SIP
A Systematic Investment Plan (SIP) is the most powerful tool for wealth creation for disciplined investors. By investing a fixed amount regularly, you leverage the power of compounding and cost averaging to build a massive corpus over time.
Our advanced calculator includes features like Step-up SIP (increasing investment annually), Inflation Adjustment (seeing real value), and Goal Planning to give you a realistic picture of your financial future.
Calculator Features
Why SIP Works
Power of Compounding
Your interest earns interest. Over 15-20 years, the returns generated often exceed the total amount you actually invested.
Capital Cost Averaging
Buy more units when markets are low and fewer when high. This naturally lowers your average cost of purchase over time.
Automated Discipline
SIP removes emotions from investing. The automated deduction ensures you save first and spend later, regardless of market mood.
SIP vs Lumpsum
| Feature | SIP (Systematic) | Lumpsum (One-time) |
|---|---|---|
| Market Timing | Not required | Critical (Risky at highs) |
| Risk | Lower (Averaged out) | Higher |
| Suitability | Salaried / Regular Income | Windfall / Bonus Gains |
The 10% Step-up Secret
Increasing your SIP by just 10% annually (matching salary hikes) can double your final corpus.
Regular SIP ($5k, 20yr)
$4.9 Million
With 10% Step-up
$9.8 Million
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing a fixed sum regularly (usually monthly) in a mutual fund scheme. It instills financial discipline and uses 'Rupee Cost Averaging'—buying more units when prices are low and fewer when prices are high, which averages out the cost of acquisition over time.
What is Step-up SIP (Top-up SIP)?
Step-up SIP involves increasing your monthly investment amount periodically (usually annually) by a fixed percentage or amount. For example, starting with $5,000/month and increasing it by 10% each year matches your growing income and dramatically accelerates wealth creation compared to a flat SIP.
How does inflation affect my SIP returns?
Inflation reduces the purchasing power of your money over time. If you earn 12% returns but inflation is 6%, your 'real return' is roughly 6%. Our calculator includes an Inflation Adjustment toggle to show you the 'Real Value' of your maturity amount in today's terms.
SIP vs Lumpsum: Which is better?
SIP is generally better for volatile markets as it averages out cost (Rupee Cost Averaging). Lumpsum is mathematically better if the market goes only up, but risky if you invest just before a crash. For most salaried investors, SIP is safer and more manageable.
What is the average return on SIP mutual funds?
Historically, equity mutual funds have delivered 12-15% annualized returns over long periods (10-15+ years). Debt funds typically offer 7-9%. However, returns are market-linked and not guaranteed.
Can I calculate how much I need to invest for a goal?
Yes, use our 'Goal Mode'. Enter your target amount (e.g., $1 Million) and time period. The calculator will tell you exactly how much monthly SIP is required to reach that goal at your expected return rate.
How does compounding work in SIP?
Compounding is earning interest on interest. In SIP, returns generated are reinvested to generate earn more returns. Over long periods (15-20 years), the 'interest on interest' component becomes larger than your actual principal investment.
Is SIP interest taxable?
Yes. In many countries like India, Equity SIP returns > 1 Lakh/year are taxed at 10% (LTCG). In the US, capital gains taxes apply upon selling. Tax rules vary by country and fund type.
Can I change my SIP amount later?
Yes, most mutual fund platforms allow you to modify, pause, or stop your SIP amount at any time. Step-up SIP specifically automates the increase, but manual changes are always possible.
What is Rupee Cost Averaging?
It is an investment strategy where you invest a fixed amount at regular intervals. When markets are down (NAV is low), you buy more units. When markets are up (NAV is high), you buy fewer units. This lowers your average cost per unit over time compared to buying a fixed number of units.