Frequently Asked Questions – SIP Calculator
What is a SIP Calculator?
A SIP (Systematic Investment Plan) Calculator is a free online tool that helps you estimate the returns on your monthly SIP investments. It uses compound interest formula to show your future maturity value based on monthly investment amount, duration, and expected rate of return.
How is SIP return calculated?
SIP return is calculated using the formula: M = P × [(1 + r)^n – 1] / r × (1 + r), where M = Maturity Value, P = Monthly Investment, r = Monthly Rate of Return, n = Number of Months.
What is a good SIP amount to start with?
You can start a SIP with as little as ₹500/month. However, financial experts at B-Wealth recommend starting with at least ₹2,000–₹5,000/month and increasing it annually by 10–15% to build significant wealth over time.
Is SIP safe for long-term investment?
SIP in equity mutual funds has historically delivered 12–15% annual returns over a 10+ year horizon. While mutual fund investments are subject to market risks, SIP reduces risk through rupee cost averaging and is considered one of the best long-term investment strategies.