👴 Retirement Calculator
Calculate the wealth corpus and systematic monthly savings required for post-retirement life.
What is a Systematic Investment Plan (SIP)?
An SIP is an investment method where you deposit a fixed cash sum regularly (usually monthly) into a mutual fund scheme of your choice. It promotes disciplined investing and leverages Rupee Cost Averaging, meaning you buy more mutual fund units when markets are low and fewer when markets are high.
How does compounding work differently in SIP vs Lumpsum?
In a Lumpsum investment, your entire capital compiles compound interest from Day 1 over the full duration. In an SIP, each monthly installment compounds separately for its respective time in the market. Consequently, a Lumpsum investment yields higher absolute returns than an SIP of the same aggregate principal over the same timeframe, though it requires all capital upfront. If you prefer fixed guaranteed returns instead of market-linked mutual funds, check out our FD / RD Calculator.
What is a realistic expected rate of return for equity SIPs?
While stock and mutual fund investments are subject to market volatility, diversified equity mutual funds in India have historically generated long-term compound annual growth rates (CAGR) of 12% to 15% over timeframes exceeding 7 to 10 years.