Mutual Fund SIP Calculator — See Your Wealth Grow

The Indian equity market (Nifty 50) has delivered approximately 12–15% CAGR over long periods (10+ years). Actively managed large-cap funds have averaged 12–14%, small-cap funds 15–18% over long periods, though with higher volatility. 12% is a commonly used conservative benchmark for long-term equity SIP projections. However, returns are market-linked and not guaranteed. Short-term results can be significantly different — even negative in market downturns. For financial planning, using 10–12% for equity and 7–8% for debt is prudent. Past returns do not guarantee future performance.

A Step-Up SIP (also called Top-Up SIP) automatically increases your SIP amount by a fixed percentage each year — typically 10–15% — matching your salary increments. The impact is dramatic: a ₹10,000 SIP with 10% annual step-up for 20 years produces approximately ₹1.82 crore, versus ₹99 lakh from a flat ₹10,000 SIP — nearly double the wealth. This is because the compounding works on a growing base. All major AMCs and platforms (Groww, Zerodha Coin, CAMS) support step-up mandates. Set it once and it runs automatically.

Long Term Capital Gains (LTCG) on equity mutual fund units held for more than 12 months are taxed at 12.5% (effective from Budget 2024, raised from 10%). However, there's a ₹1.25 lakh per year exemption — gains up to ₹1.25L from equity funds/stocks are fully tax-free. For SIP investors, each instalment has its own purchase date — only units redeemed after 12 months from their individual purchase date qualify as LTCG. Units redeemed within 12 months of purchase attract 20% STCG tax. Our calculator above shows the approximate LTCG impact on your maturity amount.

Direct plans are mutual fund schemes you buy directly from the AMC without a distributor. They have lower expense ratios (typically 0.5–1% less than regular plans) because no commission is paid to a distributor. Over 20 years, this 1% difference can compound to a very significant amount — potentially 20–30% more corpus in direct vs regular plans. Regular plans are bought through distributors, banks, or advisors — who earn a trail commission from the fund house. For long-term wealth building, direct plans (available via Zerodha Coin, Groww, AMC websites, MF Utility) are strongly preferred by informed investors.

Yes. SIPs are highly flexible — you can pause, reduce, or stop your SIP at any time without any penalty. Existing units remain invested and continue to grow. You can also increase the SIP amount or add lumpsum investments at any time. The only lock-in that exists is for ELSS funds (3 years from each SIP instalment date) and NFO closed-end funds. Regular equity mutual fund SIPs have zero exit loads after 1 year and complete flexibility.

Yes — mandatory. Any redemption of mutual fund units must be reported in your Income Tax Return (ITR). LTCG from equity funds (held 12+ months) goes in Schedule CG under LTCG — taxable at 12.5% beyond ₹1.25L/year. STCG from equity funds (held <12 months) is taxable at 20%. Debt fund gains (post April 2023) are taxed at slab rate as STCG regardless of holding period. Your AMC / platform provides a Capital Gains Statement (Form 64-B) at year-end — share it with your CA for accurate ITR filing. TAXAJ CAs handle MF capital gains computation and ITR-2/ITR-3 filing. Capital gains filing help →