Question 1

What is a SIP?

Accepted Answer

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly — typically monthly — in a mutual fund scheme. Instead of investing a lump sum, a SIP lets you invest small amounts periodically, benefiting from rupee cost averaging and the power of compounding.

Question 2

How is SIP return calculated?

Accepted Answer

SIP return uses the Future Value of an Annuity Due formula: FV = P × [(1 + i)^n − 1] / i × (1 + i), where P is the monthly investment, i is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months. Each installment is assumed to be invested at the beginning of the month (annuity due), which is the standard adopted by AMFI.

Question 3

What is Wealth Gained %?

Accepted Answer

Wealth Gained % = (Estimated Returns ÷ Total Invested) × 100. It shows how much your investment has grown relative to what you put in. A Wealth Gained % of 100% means your investment has doubled.

Question 4

What is CAGR in a SIP context?

Accepted Answer

CAGR (Compound Annual Growth Rate) here represents the annual rate at which your total invested capital would need to grow to reach the maturity value over the investment period: CAGR = (Total Value ÷ Total Invested)^(12 / months) − 1. Note that this is not the same as XIRR, which accounts for the timing of each installment and is the more precise measure of SIP returns.

Question 5

What return rate should I use?

Accepted Answer

Historical data shows that Indian large-cap equity mutual funds have delivered approximately 12–15% CAGR over long periods (10+ years), while debt funds typically deliver 6–8%. These are historical figures — actual future returns are not guaranteed. SEBI mandates that past performance is not indicative of future results.

Question 6

Is my data sent to any server?

Accepted Answer

No. All calculations happen entirely in your browser using JavaScript. No data is sent to any server.

SIP Calculator

Frequently Asked Questions

SIP Calculator

Frequently Asked Questions