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Project the maturity value of a monthly mutual-fund SIP, with an optional annual step-up.
Formula
FV = Σ [ Pk × (1+i)(n−k) ] where i = monthly return, n = months, Pk steps up each year
Worked example
Rs 10,000/month for 15 years at 12% expected return: invested Rs 18,00,000, maturity value ≈ Rs 50,45,760. With a 10% annual step-up the maturity value rises to about Rs 79,00,000.
Quick reference
| Monthly SIP | 5 yr | 10 yr | 15 yr | 20 yr |
|---|---|---|---|---|
| Rs 5,000 | 4.12 L | 11.6 L | 25.2 L | 50.0 L |
| Rs 10,000 | 8.25 L | 23.2 L | 50.5 L | 99.9 L |
| Rs 25,000 | 20.6 L | 58.1 L | 1.26 Cr | 2.50 Cr |
Maturity value at 12% expected return, no step-up.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment is compounded from its investment date to the end of the period at the assumed monthly return (annual return ÷ 12). The maturity value is the sum of all instalments plus their growth.
What return should I assume for a SIP?
Equity mutual funds in India have delivered roughly 11-13% CAGR over long periods, but returns are not guaranteed and vary widely. 10-12% is a reasonable planning assumption; debt funds are lower.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly contribution by a fixed percentage each year, usually in line with salary growth. Even a 10% step-up can add 50% or more to the final corpus over 15-20 years.