SIP of ₹200,000 per Month for 7 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹200,000 monthly over a 7-year investment horizon.

Total Principal Invested
₹16,800,000
84 monthly installments
Est. Wealth Gain (@ 12%)
+₹9,595,799
57.1% gain on invested
Expected Maturity Value
₹26,395,799
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹25,211,950
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹16,800,000 +₹4,517,528 ₹21,317,528
Public Provident Fund (PPF) 7.1% ₹16,800,000 +₹5,008,622 ₹21,808,622
Conservative Hybrid Funds 8.0% ₹16,800,000 +₹5,772,146 ₹22,572,146
Large Cap / Nifty 50 Index 10.0% ₹16,800,000 +₹7,591,668 ₹24,391,668
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹16,800,000 +₹9,595,799 ₹26,395,799
Mid Cap / Small Cap Funds 15.0% ₹16,800,000 +₹12,993,631 ₹29,793,631

Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)

TimelineInvested PrincipalGrowth / GainsTotal Corpus Value
Year 1 ₹2,400,000 +₹161,866 ₹2,561,866
Year 2 ₹4,800,000 +₹648,640 ₹5,448,640
Year 3 ₹7,200,000 +₹1,501,529 ₹8,701,529
Year 4 ₹9,600,000 +₹2,766,967 ₹12,366,967
Year 5 ₹12,000,000 +₹4,497,273 ₹16,497,273
Year 6 ₹14,400,000 +₹6,751,406 ₹21,151,406
Year 7 ₹16,800,000 +₹9,595,799 ₹26,395,799

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Frequently Asked Questions

How much will ₹200,000 invested monthly in SIP become after 7 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹200,000 for 7 years generates a maturity corpus of approximately ₹26,395,799 against an invested principal of ₹16,800,000, earning a wealth gain of ₹9,595,799.

What is the tax on the returns of ₹200,000 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 ₹1,183,850, leaving a net post-tax maturity value of ₹25,211,950.

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 ₹21,317,528. An equity SIP at 12% delivers ₹26,395,799, generating ₹5,078,272 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 ₹26,395,799 maturity corpus will be equivalent to approximately ₹17,554,714 in today's money.

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