In short
A SIP of ₹1,000 a month for 10 years means investing ₹1,20,000. At 12% a year it grows to about ₹2,32,339, of which ₹1,12,339 is gains. Keep it going for 20 years and the gains are larger than everything you put in: ₹9,99,148 from ₹2,40,000.
How we calculated
Each instalment is invested at the start of the month and the yearly return is applied monthly (rate ÷ 12), as many SIP calculators do; some convert the yearly return to an effective monthly rate instead, which gives results about 3–4% lower over 10 years. The return is assumed to stay the same every year; real returns vary.
Fund expenses are assumed to be already reflected in the return; tax on redemption and exit loads are not included.
For your own figures, use the sip & investment calculator .
Frequently asked questions
What will a SIP of ₹1,000 a month become?
At 12% a year, about ₹2,32,339 after 10 years (you invest ₹1,20,000) and ₹9,99,148 after 20 years (you invest ₹2,40,000). At 8% the 20-year figure is ₹5,92,947. Returns are not guaranteed; the table shows a range.
What return should I expect?
No mutual fund has a fixed return. Broad Indian equity funds have often returned 10–12% a year over long periods, with large swings from year to year, but past returns do not predict future ones; debt funds usually return less. Try a lower rate to plan conservatively.
Is SIP income taxed?
Gains are taxed when you redeem. For equity funds held more than a year, gains above ₹1.25 lakh a year are taxed at 12.5%; held a year or less, at 20%. Gains on debt funds bought after 1 April 2023 are added to your income and taxed at your slab rate. The values here are before tax.
SIP of other amounts
Note
This page gives estimates for information only and is not investment advice. Mutual fund investments are subject to market risks.
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