SIP of ₹20,000 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹20,000 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% | ₹960,000 | +₹138,919 | ₹1,098,919 |
| Public Provident Fund (PPF) | 7.1% | ₹960,000 | +₹152,986 | ₹1,112,986 |
| Conservative Hybrid Funds | 8.0% | ₹960,000 | +₹174,512 | ₹1,134,512 |
| Large Cap / Nifty 50 Index | 10.0% | ₹960,000 | +₹224,237 | ₹1,184,237 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹960,000 | +₹276,697 | ₹1,236,697 |
| Mid Cap / Small Cap Funds | 15.0% | ₹960,000 | +₹360,875 | ₹1,320,875 |
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 |
| Year 3 | ₹720,000 | +₹150,153 | ₹870,153 |
| Year 4 | ₹960,000 | +₹276,697 | ₹1,236,697 |
Invest in 0% Commission Direct Mutual Funds
Start a monthly SIP on Zerodha Coin or Groww with zero distributor commissions.
Frequently Asked Questions
How much will ₹20,000 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹20,000 for 4 years generates a maturity corpus of approximately ₹1,236,697 against an invested principal of ₹960,000, earning a wealth gain of ₹276,697.
What is the tax on the returns of ₹20,000 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 ₹18,962, leaving a net post-tax maturity value of ₹1,217,735.
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 ₹1,098,919. An equity SIP at 12% delivers ₹1,236,697, generating ₹137,778 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 ₹1,236,697 maturity corpus will be equivalent to approximately ₹979,580 in today's money.
Explore other durations: View All SIP Scenarios · All Financial Calculators · Mutual Funds Directory