Question 1

What is a SIP?

Accepted Answer

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals (usually monthly). It builds wealth through rupee cost averaging and the power of compounding.

Question 2

How is SIP return calculated?

Accepted Answer

The maturity value uses the future value of an annuity 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.

Question 3

Is a 12% return realistic for SIP?

Accepted Answer

Historically, equity mutual funds in India have delivered roughly 10–15% annualized returns over the long term, so 12% is a commonly used planning estimate. Actual returns vary with market conditions.

Question 4

Does this SIP calculator store my data?

Accepted Answer

No. All calculations run entirely in your browser. Nothing is uploaded or stored on any server.