SIP of ₹20,000 per Month for 2 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹20,000 monthly over a 2-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% | ₹480,000 | +₹33,891 | ₹513,891 |
| Public Provident Fund (PPF) | 7.1% | ₹480,000 | +₹37,164 | ₹517,164 |
| Conservative Hybrid Funds | 8.0% | ₹480,000 | +₹42,122 | ₹522,122 |
| Large Cap / Nifty 50 Index | 10.0% | ₹480,000 | +₹53,346 | ₹533,346 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹480,000 | +₹64,864 | ₹544,864 |
| Mid Cap / Small Cap Funds | 15.0% | ₹480,000 | +₹82,709 | ₹562,709 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹240,000 | +₹16,187 | ₹256,187 |
| Year 2 | ₹480,000 | +₹64,864 | ₹544,864 |
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Frequently Asked Questions
How much will ₹20,000 invested monthly in SIP become after 2 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹20,000 for 2 years generates a maturity corpus of approximately ₹544,864 against an invested principal of ₹480,000, earning a wealth gain of ₹64,864.
What is the tax on the returns of ₹20,000 SIP after 2 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 ₹0, leaving a net post-tax maturity value of ₹544,864.
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 ₹513,891. An equity SIP at 12% delivers ₹544,864, generating ₹30,973 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 2 years, the purchasing power of your ₹544,864 maturity corpus will be equivalent to approximately ₹484,927 in today's money.
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