SIP of ₹12,500 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹12,500 monthly over a 4-year investment horizon.
Returns Across Different Asset Classes
| Asset Class / Style | Expected CAGR | Total Invested | Estimated Returns | Maturity Corpus |
|---|---|---|---|---|
| Bank Recurring Deposit (RD) | 6.5% | ₹600,000 | +₹86,824 | ₹686,824 |
| Public Provident Fund (PPF) | 7.1% | ₹600,000 | +₹95,616 | ₹695,616 |
| Conservative Hybrid Funds | 8.0% | ₹600,000 | +₹109,070 | ₹709,070 |
| Large Cap / Nifty 50 Index | 10.0% | ₹600,000 | +₹140,148 | ₹740,148 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹600,000 | +₹172,935 | ₹772,935 |
| Mid Cap / Small Cap Funds | 15.0% | ₹600,000 | +₹225,547 | ₹825,547 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹150,000 | +₹10,117 | ₹160,117 |
| Year 2 | ₹300,000 | +₹40,540 | ₹340,540 |
| Year 3 | ₹450,000 | +₹93,846 | ₹543,846 |
| Year 4 | ₹600,000 | +₹172,935 | ₹772,935 |
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Frequently Asked Questions
How much will ₹12,500 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹12,500 for 4 years generates a maturity corpus of approximately ₹772,935 against an invested principal of ₹600,000, earning a wealth gain of ₹172,935.
What is the tax on the returns of ₹12,500 SIP after 4 years?
Under Section 112A (revised post-Budget 2024), Long Term Capital Gains (LTCG) from equity mutual funds held for more than 12 months are tax-exempt up to ₹1.25 Lakh per financial year. Profits exceeding ₹1.25 Lakh are taxed at flat 12.5%. For this scenario, estimated tax is ₹5,992, leaving a net post-tax maturity value of ₹766,943.
How does an equity SIP compare to a Bank Recurring Deposit (RD)?
In a Bank RD at 6.5% interest, your total corpus would be ₹686,824. An equity SIP at 12% delivers ₹772,935, generating ₹86,111 in extra wealth due to compounding power.
What will be the real purchasing power of the corpus after inflation?
Assuming an average inflation rate of 6% over 4 years, the purchasing power of your ₹772,935 maturity corpus will be equivalent to approximately ₹612,237 in today's money.
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