SIP of ₹12,500 per Month for 8 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹12,500 monthly over a 8-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% | ₹1,200,000 | +₹376,963 | ₹1,576,963 |
| Public Provident Fund (PPF) | 7.1% | ₹1,200,000 | +₹418,923 | ₹1,618,923 |
| Conservative Hybrid Funds | 8.0% | ₹1,200,000 | +₹484,513 | ₹1,684,513 |
| Large Cap / Nifty 50 Index | 10.0% | ₹1,200,000 | +₹642,491 | ₹1,842,491 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹1,200,000 | +₹819,082 | ₹2,019,082 |
| Mid Cap / Small Cap Funds | 15.0% | ₹1,200,000 | +₹1,124,207 | ₹2,324,207 |
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 |
| Year 5 | ₹750,000 | +₹281,080 | ₹1,031,080 |
| Year 6 | ₹900,000 | +₹421,963 | ₹1,321,963 |
| Year 7 | ₹1,050,000 | +₹599,737 | ₹1,649,737 |
| Year 8 | ₹1,200,000 | +₹819,082 | ₹2,019,082 |
Invest in 0% Commission Direct Mutual Funds
Start a monthly SIP on Zerodha Coin or Groww with zero distributor commissions.
Frequently Asked Questions
How much will ₹12,500 invested monthly in SIP become after 8 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹12,500 for 8 years generates a maturity corpus of approximately ₹2,019,082 against an invested principal of ₹1,200,000, earning a wealth gain of ₹819,082.
What is the tax on the returns of ₹12,500 SIP after 8 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 ₹86,760, leaving a net post-tax maturity value of ₹1,932,322.
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 ₹1,576,963. An equity SIP at 12% delivers ₹2,019,082, generating ₹442,119 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 8 years, the purchasing power of your ₹2,019,082 maturity corpus will be equivalent to approximately ₹1,266,797 in today's money.
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