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 ₹20,000 monthly SIP in 10 years?

At an average equity mutual fund return rate of 12% CAGR, a ₹20,000 monthly SIP grows to approximately ₹46.47 L in 10 years (total invested: ₹24.00 L, wealth gain: ₹22.47 L).

What will be the value of a ₹20,000 monthly SIP in 20 years?

Over a 20-year horizon at 12% CAGR, a ₹20,000 monthly SIP creates a corpus of ₹2.00 Cr on an invested capital of ₹48.00 L.

Monthly SIP Growth Guide 2026

₹20,000 Per Month SIP Returns Breakdown

Compounding wealth trajectory, 10-year and 20-year wealth gains, and rupee cost averaging benefits for a ₹20,000 monthly investment.

10-Yr Corpus Value₹46.47 L(at 12% CAGR)

Monthly Investment

₹20,000

Per month SIP

5-Yr Corpus

₹16.50 L

Gain: ₹4.50 L

10-Yr Corpus

₹46.47 L

Gain: ₹22.47 L

20-Yr Corpus

₹2.00 Cr

Gain: ₹1.52 Cr

Key Insights for a ₹20,000 Monthly SIP

Investing ₹20,000 per month in an equity mutual fund SIP at 12% CAGR grows to ₹46.47 Lakhs in 10 years (invested: ₹24.00 Lakhs, wealth gain: ₹22.47 Lakhs).
Over 20 years, a ₹20,000 monthly SIP creates a massive wealth corpus of ₹199.83 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.