SIP of ₹2,000 per Month for 8 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹2,000 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% | ₹192,000 | +₹60,314 | ₹252,314 |
| Public Provident Fund (PPF) | 7.1% | ₹192,000 | +₹67,028 | ₹259,028 |
| Conservative Hybrid Funds | 8.0% | ₹192,000 | +₹77,522 | ₹269,522 |
| Large Cap / Nifty 50 Index | 10.0% | ₹192,000 | +₹102,798 | ₹294,798 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹192,000 | +₹131,053 | ₹323,053 |
| Mid Cap / Small Cap Funds | 15.0% | ₹192,000 | +₹179,873 | ₹371,873 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹24,000 | +₹1,619 | ₹25,619 |
| Year 2 | ₹48,000 | +₹6,486 | ₹54,486 |
| Year 3 | ₹72,000 | +₹15,015 | ₹87,015 |
| Year 4 | ₹96,000 | +₹27,670 | ₹123,670 |
| Year 5 | ₹120,000 | +₹44,973 | ₹164,973 |
| Year 6 | ₹144,000 | +₹67,514 | ₹211,514 |
| Year 7 | ₹168,000 | +₹95,958 | ₹263,958 |
| Year 8 | ₹192,000 | +₹131,053 | ₹323,053 |
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Frequently Asked Questions
How much will ₹2,000 invested monthly in SIP become after 8 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹2,000 for 8 years generates a maturity corpus of approximately ₹323,053 against an invested principal of ₹192,000, earning a wealth gain of ₹131,053.
What is the tax on the returns of ₹2,000 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 ₹757, leaving a net post-tax maturity value of ₹322,296.
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 ₹252,314. An equity SIP at 12% delivers ₹323,053, generating ₹70,739 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 ₹323,053 maturity corpus will be equivalent to approximately ₹202,688 in today's money.
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