What is SIP?

SIP (Systematic Investment Plan) is a disciplined way of investing money in mutual funds. Instead of investing a lump sum amount, you invest a fixed amount every month. SIP helps in wealth creation through the power of compounding.

How SIP Calculator Works?

A SIP calculator uses the compound interest formula to estimate your future investment value. It calculates the total amount invested, expected returns, and final maturity value based on monthly investment, annual return rate, and number of years.

Benefits of Using SIP Calculator

• Helps in financial planning
• Estimates long-term wealth creation
• Easy comparison of different investment scenarios
• Useful for retirement planning
• Free and instant calculation

Why SIP is Better for Long-Term Investment?

SIP reduces market timing risk and benefits from rupee cost averaging. Over time, compounding increases your total returns significantly. Even small monthly investments can generate large wealth if invested for long duration.

Frequently Asked Questions

Is SIP safe?
SIP invests in mutual funds, which are market linked. Risk depends on fund type.

Can I start SIP with small amount?
Yes, you can start SIP with as low as ₹500 per month.

What is ideal SIP duration?
For better compounding benefits, 10+ years is recommended.