SIP of ₹22,000 per Month for 4 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹22,000 monthly over a 4-year investment horizon.

Total Principal Invested
₹1,056,000
48 monthly installments
Est. Wealth Gain (@ 12%)
+₹304,366
28.8% gain on invested
Expected Maturity Value
₹1,360,366
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹1,337,946
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹1,056,000 +₹152,811 ₹1,208,811
Public Provident Fund (PPF) 7.1% ₹1,056,000 +₹168,284 ₹1,224,284
Conservative Hybrid Funds 8.0% ₹1,056,000 +₹191,963 ₹1,247,963
Large Cap / Nifty 50 Index 10.0% ₹1,056,000 +₹246,661 ₹1,302,661
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹1,056,000 +₹304,366 ₹1,360,366
Mid Cap / Small Cap Funds 15.0% ₹1,056,000 +₹396,962 ₹1,452,962

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

TimelineInvested PrincipalGrowth / GainsTotal Corpus Value
Year 1 ₹264,000 +₹17,805 ₹281,805
Year 2 ₹528,000 +₹71,350 ₹599,350
Year 3 ₹792,000 +₹165,168 ₹957,168
Year 4 ₹1,056,000 +₹304,366 ₹1,360,366

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Frequently Asked Questions

How much will ₹22,000 invested monthly in SIP become after 4 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹22,000 for 4 years generates a maturity corpus of approximately ₹1,360,366 against an invested principal of ₹1,056,000, earning a wealth gain of ₹304,366.

What is the tax on the returns of ₹22,000 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 ₹22,421, leaving a net post-tax maturity value of ₹1,337,946.

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 ₹1,208,811. An equity SIP at 12% delivers ₹1,360,366, generating ₹151,556 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 ₹1,360,366 maturity corpus will be equivalent to approximately ₹1,077,538 in today's money.

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