Knowledge Base

SIP — Systematic Investment Plan

FV = P × [((1+r)^n − 1) / r] × (1+r)

SIP invests a fixed amount monthly into mutual funds, averaging out market volatility (rupee-cost averaging).

Even ₹500/month at 12% p.a. for 30 years grows to over ₹17 Lakhs — the power of compounding.

Step-up SIPs (increasing amount yearly) can dramatically accelerate wealth — a 10% annual step-up can double your corpus.

SIP returns are not guaranteed and depend on market performance. Past returns ≠ future results.

ELSS SIPs offer tax deduction under Section 80C (up to ₹1.5L/year) with just 3-year lock-in.

Pro Tip

Start early, stay consistent. A 25-year-old investing ₹5,000/month beats a 35-year-old investing ₹15,000/month by retirement.

SIP — Systematic Investment Plan - Complete Guide

Everything you need to know about SIP and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

FV = P × [((1+r)^n − 1) / r] × (1+r)

Key Concepts & Rules

SIP invests a fixed amount monthly into mutual funds, averaging out market volatility (rupee-cost averaging).

Even ₹500/month at 12% p.a. for 30 years grows to over ₹17 Lakhs — the power of compounding.

Step-up SIPs (increasing amount yearly) can dramatically accelerate wealth — a 10% annual step-up can double your corpus.

SIP returns are not guaranteed and depend on market performance. Past returns ≠ future results.

ELSS SIPs offer tax deduction under Section 80C (up to ₹1.5L/year) with just 3-year lock-in.

Expert Strategy

Start early, stay consistent. A 25-year-old investing ₹5,000/month beats a 35-year-old investing ₹15,000/month by retirement.

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