How is SIP return calculated?

SIP return = Future Value of all monthly investments compounded at the expected rate. Formula: M = P × ((1+r)^n – 1) / r × (1+r), where P = monthly SIP, r = monthly rate, n = number of months.

What is the difference between CAGR and XIRR for mutual funds?

CAGR (Compound Annual Growth Rate) is used for lumpsum investments. XIRR (Extended Internal Rate of Return) is used for SIP because multiple investments are made at different times. Most mutual fund platforms show XIRR for SIP returns.

What is a step-up SIP?

Step-up SIP (or top-up SIP) increases your monthly contribution by a fixed percentage each year. For example, starting with ₹5,000 and stepping up 10% yearly means ₹5,500 in year 2, ₹6,050 in year 3, etc. This significantly increases final corpus.

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Mutual Fund Returns Calculator

Calculate SIP returns, lumpsum investment growth and step-up SIP maturity. Compare all fund categories with year-by-year wealth creation.

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Monthly SIP amount (₹)₹5,000

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📊 What if you invested in different fund types?

Year-by-year growth

Year	Invested	Value	Gain	Gain %

How are mutual fund returns calculated?

SIP returns use future value of annuity formula. Lumpsum uses compound interest. Step-up SIP calculates each year's SIP at the increased amount. Returns shown are estimated — actual returns depend on market conditions and fund manager performance.

📅 SIP advantages

Rupee cost averaging: buying more units when prices are low. Compounding: reinvested returns grow your corpus. Discipline: automatic debit each month. Starting with ₹5,000/month at 14% for 20 years creates ₹1.28 crore from ₹12 lakh invested.

📈 Step-Up SIP power

A 10% annual increase on a ₹5,000 SIP matches salary growth. Over 15 years, a step-up SIP gives 40–60% more corpus than a flat SIP — the most powerful wealth creation strategy for salaried individuals.

💰 Lumpsum timing

Lumpsum investing works best when markets are low (corrections). Dollar-cost averaging via SIP is better for regular investors. Use lumpsum for bonuses, gifts or inheritances when you have a large sum to invest.

🔥 Power of staying invested

The last few years generate the most wealth due to compounding. ₹5,000 SIP at 12%: Year 10 = ₹11.6 lakh, Year 20 = ₹49.9 lakh, Year 30 = ₹1.76 crore. Never stop a SIP in market downturns.

Frequently asked questions

What is a good mutual fund return in India?

Large-cap equity funds: 12–14% long-term CAGR. Mid-cap funds: 14–18%. Small-cap: 15–20% with higher risk. Hybrid funds: 10–12%. Debt funds: 6–8%. Index funds tracking Nifty 50 have historically given ~12.5% CAGR over 10+ years.

How is SIP different from lumpsum investment?

SIP invests a fixed amount monthly regardless of market level — you automatically buy more units when markets fall. Lumpsum invests everything at once, so timing matters more. For most salaried investors, SIP is recommended due to rupee cost averaging and lower timing risk.

What is step-up SIP?

Step-up SIP increases your monthly investment by a fixed % each year, matching income growth. Starting ₹5,000 with 10% annual step-up means ₹5,500 in year 2, ₹6,050 in year 3, etc. Over 15 years, this can generate 50–60% more wealth than a flat SIP.

Is mutual fund return taxable?

Equity mutual funds: STCG (held < 1 year) = 15%, LTCG (> 1 year) = 10% above ₹1 lakh gain. Debt mutual funds (from April 2023): taxed as per your income slab regardless of holding period. ELSS funds give 80C deduction up to ₹1.5 lakh with 3-year lock-in.