SIP
Systematic Investment Plan — fixed monthly investments into a mutual fund that build wealth via rupee-cost averaging and compounding.
Definition
A Systematic Investment Plan (SIP) is a way to invest in mutual funds where you contribute a fixed amount at fixed intervals — typically ₹500 to ₹50,000 monthly. The fixed contribution buys more units when prices are low and fewer when prices are high, averaging your purchase price (rupee-cost averaging).
The compounding effect over 10-20 years is dramatic: ₹10,000/month at 12% expected return grows to ~₹50 lakh in 15 years and ~₹1 crore in 20 years. SIPs remove the burden of market timing and enforce monthly savings discipline — the behavioural benefit that beats the math.
Formula
FV = P × ((1 + r)ⁿ − 1) / r × (1 + r)Example
₹10,000 monthly at 12% for 15 years (180 months) → FV ≈ ₹50.5 lakh on ₹18 lakh invested. Wealth multiplier ≈ 2.8×.
Calculators that use this
SIP
Calculate the future value of your monthly Systematic Investment Plan (SIP) in mutual funds. See total invested, gains, and final corpus.
Open calculatorStep-up SIP
Step-up SIP grows your monthly contribution by a fixed percentage each year. Compare against a flat SIP to see how much extra corpus you build over time.
Open calculatorGoal SIP
Calculate the monthly SIP needed to reach a financial goal — child's education, house down payment, retirement — with optional inflation adjustment.
Open calculatorLumpsum
Calculate the future value of a one-time investment with compound returns. Compare against SIP for the same goal.
Open calculatorRelated terms
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