SIP Calculator

Systematic Investment Plan (SIP): A Complete Guide for Beginners

A Systematic Investment Plan (SIP) is one of the most popular ways to invest in mutual funds. Instead of investing a lump sum, SIP allows you to invest a fixed amount regularly – monthly, quarterly, or yearly. This disciplined approach helps you build wealth steadily without market timing worries.

Why Choose SIP?

Rupee Cost Averaging – Balances risk by buying more when markets are low and fewer when high.
Power of Compounding – Small investments grow exponentially over time.
Discipline – Encourages consistent investing habits.
Affordable – Start with just ₹500 per month.

Benefits of SIP

Wealth creation over time
Lower market risk compared to lump sum
Flexibility to start, pause, or stop anytime
No need to time the market
Perfect for long-term financial goals

Types of SIP

Flexible SIP – Adjust investment amount.
Top-up SIP – Increase contributions with income growth.
Perpetual SIP – No end date, runs until you stop it.
Trigger SIP – Invests automatically on specific conditions.

How to Start SIP?

Set clear financial goals.
Choose the right mutual fund.
Select SIP amount & duration.
Complete online KYC.
Link bank account for auto-debit.

SIP Calculator Example

If you invest ₹5,000/month for 10 years at 12% annual return:

Total Investment: ₹6,00,000
Estimated Value: ₹11,61,695
Wealth Gain: ₹5,61,695

SIP vs Lump Sum

Feature	SIP	Lump Sum
Investment Style	Regular, disciplined	One-time, big amount
Market Risk	Low (averaged)	High (depends on timing)
Best For	Beginners, salaried investors	Experienced investors
Flexibility	High	Low

Common SIP Mistakes to Avoid

Stopping SIP when markets fall
Expecting quick short-term returns
Not reviewing fund performance
Choosing wrong funds without research

FAQs on SIP

1. What is the minimum amount to start SIP?

You can start SIP with just ₹500 per month in India.

2. Can I stop SIP anytime?

Yes, SIPs are flexible. You can pause or stop anytime.

3. Is SIP better than FD?

SIP generally provides higher long-term returns compared to Fixed Deposits.

A Systematic Investment Plan (SIP) is the easiest way to build wealth steadily. It is flexible, affordable, and perfect for beginners. Start small, stay consistent, and let compounding grow your money.