A Systematic Investment Plan is a way of investing a fixed amount into a mutual fund at regular intervals, usually monthly. Because you invest across market highs and lows, your average cost per unit tends to smooth out over time — often called rupee-cost averaging.

A SIP spreads your investment over many months; a lump sum puts a single larger amount in at once. A lump sum has more time in the market from day one, while a SIP reduces the risk of investing everything just before a fall. This calculator lets you model either, or both together.

It compounds your money monthly at the annual return you enter. A lump sum grows for the full period; each SIP instalment grows from the month you invest it. If you switch on step-up, your monthly amount increases once a year by the percentage you choose.

A step-up SIP raises your monthly contribution every year — usually to keep pace with your rising income. Even a 10% annual step-up can dramatically increase your final corpus, because the larger contributions in later years still get time to compound.

That is your choice, and it should be realistic. Equity funds have historically delivered around 10–12% over long periods, though past performance does not guarantee future returns. Debt funds are typically lower. It is wise to check the result at a more conservative rate too.

No. The calculator assumes a steady, constant return for simplicity, but real markets rise and fall. Actual mutual fund returns vary year to year and are never guaranteed. Treat the output as an illustration of how compounding works, not a promise.

No — it shows the gross projected value before any tax. When you redeem, capital gains tax applies depending on the fund type and how long you held it. See our mutual fund taxation guide to estimate what you would keep after tax.

No. The figure shown is the future rupee value, not its purchasing power in today's money. A corpus of ₹1 crore in 20 years will buy less than ₹1 crore does today, so keep inflation in mind when setting your goal.

Invested is the total money you put in from your own pocket. Returns earned is the growth on top of that from compounding. Added together they make your total corpus. Over long periods, the returns portion often grows larger than the amount you invested.

Neither is universally better. If you have a large amount ready and a long horizon, a lump sum gives maximum time in the market. If you are investing from monthly income, or want to reduce timing risk, a SIP suits better. Many investors do both — a lump sum now, topped up by an ongoing SIP.

Many funds allow SIPs from as little as ₹500 a month, and some from ₹100. The right amount is one you can sustain consistently — stopping and restarting a SIP undoes much of its benefit.

Yes. SIPs are flexible — you can increase, decrease, pause or stop them, and most platforms let you set up a step-up automatically. The discipline of staying invested through market dips is usually what drives long-term results.

No. It is an educational illustration based on the assumptions you enter, and it excludes tax, inflation, exit loads and expense ratios. Use it to explore scenarios, not as a precise forecast, and speak to a qualified advisor for a plan suited to you.