SIP of ₹18,000 per Month for 5 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹18,000 monthly over a 5-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% | ₹1,080,000 | +₹199,022 | ₹1,279,022 |
| Public Provident Fund (PPF) | 7.1% | ₹1,080,000 | +₹219,658 | ₹1,299,658 |
| Conservative Hybrid Funds | 8.0% | ₹1,080,000 | +₹251,401 | ₹1,331,401 |
| Large Cap / Nifty 50 Index | 10.0% | ₹1,080,000 | +₹325,483 | ₹1,405,483 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹1,080,000 | +₹404,755 | ₹1,484,755 |
| Mid Cap / Small Cap Funds | 15.0% | ₹1,080,000 | +₹534,270 | ₹1,614,270 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹216,000 | +₹14,568 | ₹230,568 |
| Year 2 | ₹432,000 | +₹58,378 | ₹490,378 |
| Year 3 | ₹648,000 | +₹135,138 | ₹783,138 |
| Year 4 | ₹864,000 | +₹249,027 | ₹1,113,027 |
| Year 5 | ₹1,080,000 | +₹404,755 | ₹1,484,755 |
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Frequently Asked Questions
How much will ₹18,000 invested monthly in SIP become after 5 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹18,000 for 5 years generates a maturity corpus of approximately ₹1,484,755 against an invested principal of ₹1,080,000, earning a wealth gain of ₹404,755.
What is the tax on the returns of ₹18,000 SIP after 5 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 ₹34,969, leaving a net post-tax maturity value of ₹1,449,785.
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 ₹1,279,022. An equity SIP at 12% delivers ₹1,484,755, generating ₹205,732 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 5 years, the purchasing power of your ₹1,484,755 maturity corpus will be equivalent to approximately ₹1,109,495 in today's money.
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