Investment Summary
Total Invested
₹
Estimated Returns
₹
Total Value
₹
Growth
x
Key Insights
What is Inflation Adjusted SIP Calculation?
Inflation Adjusted SIP helps you estimate the real value of your investment returns after accounting for
inflation.
When you enable this option, the calculator subtracts the inflation rate from your expected return rate,
showing you the actual growth of your money in today's
terms.
Why is this important?
Inflation reduces the purchasing power of your returns over time. By adjusting for inflation, you
get a more realistic picture of how much your SIP investments will be worth in the future.
Example: If your SIP grows at 12% per year and inflation is 6%, your real return is only 6% per
year.
How SIP Works
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. The invested money earns compound interest over time.
We use the compound interest formula for SIP:
- P = Monthly investment
- r = Monthly interest rate (annual rate / 12 / 100)
- n = Number of months
- FV = Future Value (Maturity amount)
What is SIP?
SIP (Systematic Investment Plan) is a disciplined way to invest a fixed amount regularly (usually monthly) in mutual funds. It helps you build wealth over time by harnessing the power of compounding and rupee cost averaging. SIPs are ideal for all types of investors, especially those who want to start small and grow their investments gradually.
- Start with as little as ₹100 or ₹500 per month
- Invest automatically on a fixed date every month
- Benefit from compounding and market ups & downs
- Easy to pause, stop, or increase your SIP anytime
Types of SIPs
Regular SIP
Invest a fixed amount at regular intervals (monthly/quarterly). Most common and simple SIP type.
Step-up SIP
Increase your SIP amount automatically every year or at a chosen interval. Helps you invest more as your income grows.
Flexible SIP
Change your SIP amount or skip installments as per your convenience. Offers flexibility for irregular cash flows.
SIP vs Lump Sum
| Feature | SIP | Lump Sum |
|---|---|---|
| Investment Style | Regular, small amounts | One-time, large amount |
| Market Timing Risk | Low (averaged out) | High |
| Best For | Salaried, new investors | Those with large surplus |
| Compounding | Monthly | From day one |
| Volatility Handling | Reduces impact of market ups & downs | High risk if invested at market peak |
| Discipline | Promotes regular saving | Requires large sum & timing |
| Example (10 yrs, 12% p.a.) | ₹10,000/month → ₹23.2 Lakhs | ₹12,00,000 once → ₹37.2 Lakhs |