SIP of ₹18,000 per Month for 7 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹18,000 monthly over a 7-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% | ₹1,512,000 | +₹406,578 | ₹1,918,578 |
| Public Provident Fund (PPF) | 7.1% | ₹1,512,000 | +₹450,776 | ₹1,962,776 |
| Conservative Hybrid Funds | 8.0% | ₹1,512,000 | +₹519,493 | ₹2,031,493 |
| Large Cap / Nifty 50 Index | 10.0% | ₹1,512,000 | +₹683,250 | ₹2,195,250 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹1,512,000 | +₹863,622 | ₹2,375,622 |
| Mid Cap / Small Cap Funds | 15.0% | ₹1,512,000 | +₹1,169,427 | ₹2,681,427 |
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 |
| Year 6 | ₹1,296,000 | +₹607,627 | ₹1,903,627 |
| Year 7 | ₹1,512,000 | +₹863,622 | ₹2,375,622 |
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Frequently Asked Questions
How much will ₹18,000 invested monthly in SIP become after 7 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹18,000 for 7 years generates a maturity corpus of approximately ₹2,375,622 against an invested principal of ₹1,512,000, earning a wealth gain of ₹863,622.
What is the tax on the returns of ₹18,000 SIP after 7 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 ₹92,328, leaving a net post-tax maturity value of ₹2,283,294.
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 ₹1,918,578. An equity SIP at 12% delivers ₹2,375,622, generating ₹457,044 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 7 years, the purchasing power of your ₹2,375,622 maturity corpus will be equivalent to approximately ₹1,579,924 in today's money.
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