What is a SIP?
A Systematic Investment Plan (SIP) is a way of investing a fixed amount into a mutual fund at regular intervals usually monthly. Because you invest in every market condition, you buy more units when prices are low and fewer when high, averaging out your cost over time.
How SIP returns are calculated
Each monthly contribution compounds until the end of the period. This calculator assumes the investment is made at the start of each month and compounds monthly at your expected annual rate of return.
Why start early
The longer your money stays invested, the more compounding works in your favour. Even a small monthly SIP started early can outgrow a larger one started later.