Question 1

What is SIP and how does it work?

Accepted Answer

SIP (Systematic Investment Plan) means investing a fixed amount monthly in a mutual fund. Each month you buy units at the current NAV. Over time, you average your purchase cost (rupee cost averaging) and benefit from compounding. Even ₹5,000/month at 12% for 20 years grows to ₹49.9 lakh.

Question 2

What is the minimum SIP amount?

Accepted Answer

Most mutual funds allow SIPs starting from ₹500/month. Index funds on Zerodha/Groww allow ₹100/month. For meaningful wealth creation, ₹2,000–5,000/month is a practical starting point — and you can step it up as your income grows.

Question 3

Is 12% a realistic SIP return assumption?

Accepted Answer

The Nifty 50 has delivered ~12–14% CAGR over 15-year rolling periods historically. 12% is a reasonable long-term expectation for diversified equity SIP. Use 10% for conservative planning, 12% for moderate, 14% for aggressive. Markets can give 0% or negative returns in any single year.

Question 4

What happens if I miss a SIP installment?

Accepted Answer

Missing 1–2 installments doesn't close your SIP. The fund house may charge a small penalty (₹100–200) and mark it as a failed transaction. Your SIP continues from the next month. However, consistently skipping defeats the purpose — use our 'Cost of Pausing SIP' calculator to see the impact.

Question 5

SIP vs lumpsum — which is better?

Accepted Answer

SIP beats lumpsum in volatile markets (you buy more units at lower prices during dips). Lumpsum beats SIP if you invest at the exact market bottom. Since timing the market is impossible, SIP is recommended for regular investors. If you have a windfall, use STP (Systematic Transfer Plan) — park in liquid fund, transfer to equity monthly.

Question 6

How do I use this calculator?

Accepted Answer

Enter your values in the yellow input fields (or drag the sliders). All results update instantly — no submit button needed. Every field has a tooltip explaining what to enter. For the best experience, use realistic numbers from your actual financial situation.

Question 7

Are these calculations updated for FY 2025-26?

Accepted Answer

Yes. All tax-related calculators (Income Tax, HRA, NPS) are updated with FY 2025-26 slab rates including the new regime with ₹75,000 standard deduction and ₹7 lakh rebate. Investment return assumptions reflect current market conditions.

Question 8

Can I save or download my calculator results?

Accepted Answer

You can screenshot your results directly from the browser. For a fully editable, downloadable version with formulas, year-wise projections, and detailed breakdowns, purchase our Excel model packs starting at ₹499 — the same calculation in a professional spreadsheet format.

SIP Calculator

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