SIP of ₹125,000 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹125,000 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% | ₹6,000,000 | +₹868,243 | ₹6,868,243 |
| Public Provident Fund (PPF) | 7.1% | ₹6,000,000 | +₹956,162 | ₹6,956,162 |
| Conservative Hybrid Funds | 8.0% | ₹6,000,000 | +₹1,090,698 | ₹7,090,698 |
| Large Cap / Nifty 50 Index | 10.0% | ₹6,000,000 | +₹1,401,481 | ₹7,401,481 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹6,000,000 | +₹1,729,354 | ₹7,729,354 |
| Mid Cap / Small Cap Funds | 15.0% | ₹6,000,000 | +₹2,255,468 | ₹8,255,468 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹1,500,000 | +₹101,166 | ₹1,601,166 |
| Year 2 | ₹3,000,000 | +₹405,400 | ₹3,405,400 |
| Year 3 | ₹4,500,000 | +₹938,456 | ₹5,438,456 |
| Year 4 | ₹6,000,000 | +₹1,729,354 | ₹7,729,354 |
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Frequently Asked Questions
How much will ₹125,000 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹125,000 for 4 years generates a maturity corpus of approximately ₹7,729,354 against an invested principal of ₹6,000,000, earning a wealth gain of ₹1,729,354.
What is the tax on the returns of ₹125,000 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 ₹200,544, leaving a net post-tax maturity value of ₹7,528,810.
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 ₹6,868,243. An equity SIP at 12% delivers ₹7,729,354, generating ₹861,111 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 ₹7,729,354 maturity corpus will be equivalent to approximately ₹6,122,373 in today's money.
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