How is SIP return calculated in mutual funds?

SIP returns are calculated using the compound interest formula for monthly annuity: M = P x [((1 + i)^n - 1) / i] x (1 + i), where P is monthly investment, i is monthly return rate, and n is total number of months.

What is a good expected return rate for equity mutual fund SIP in India?

Historically, diversified equity mutual funds in India have delivered average long-term CAGR returns between 12% and 15% per annum over 10+ year horizons.

Can I increase my SIP amount every year?

Yes! Step-Up SIP (Top-Up SIP) allows you to automatically increase your monthly investment by a fixed amount or percentage every year to match salary increments.

What will be the value of a ₹1 Lakh monthly SIP in 10 years?

At an average equity mutual fund return rate of 12% CAGR, a ₹1 Lakh monthly SIP grows to approximately ₹2.32 Cr in 10 years (total invested: ₹1.20 Cr, wealth gain: ₹1.12 Cr).

What will be the value of a ₹1 Lakh monthly SIP in 20 years?

Over a 20-year horizon at 12% CAGR, a ₹1 Lakh monthly SIP creates a corpus of ₹9.99 Cr on an invested capital of ₹2.40 Cr.

Monthly SIP Growth Guide 2026

₹1 Lakh Per Month SIP Returns Breakdown

Compounding wealth trajectory, 10-year and 20-year wealth gains, and rupee cost averaging benefits for a ₹1 Lakh monthly investment.

10-Yr Corpus Value₹2.32 Cr(at 12% CAGR)

Monthly Investment

₹1 Lakh

Per month SIP

5-Yr Corpus

₹82.49 L

Gain: ₹22.49 L

10-Yr Corpus

₹2.32 Cr

Gain: ₹1.12 Cr

20-Yr Corpus

₹9.99 Cr

Gain: ₹7.59 Cr

Key Insights for a ₹1 Lakh Monthly SIP

Investing ₹1 Lakh per month in an equity mutual fund SIP at 12% CAGR grows to ₹232.34 Lakhs in 10 years (invested: ₹120.00 Lakhs, wealth gain: ₹112.34 Lakhs).
Over 20 years, a ₹1 Lakh monthly SIP creates a massive wealth corpus of ₹999.15 Lakhs, with compounding interest providing over 3.2x of your total invested capital.
Rupee cost averaging automatically buys more mutual fund units when markets drop, reducing long-term portfolio volatility.