SIP of ₹2,500 per Month for 18 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹2,500 monthly over a 18-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% | ₹540,000 | +₹486,377 | ₹1,026,377 |
| Public Provident Fund (PPF) | 7.1% | ₹540,000 | +₹554,874 | ₹1,094,874 |
| Conservative Hybrid Funds | 8.0% | ₹540,000 | +₹668,217 | ₹1,208,217 |
| Large Cap / Nifty 50 Index | 10.0% | ₹540,000 | +₹973,920 | ₹1,513,920 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹540,000 | +₹1,373,598 | ₹1,913,598 |
| Mid Cap / Small Cap Funds | 15.0% | ₹540,000 | +₹2,220,638 | ₹2,760,638 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹30,000 | +₹2,023 | ₹32,023 |
| Year 2 | ₹60,000 | +₹8,108 | ₹68,108 |
| Year 3 | ₹90,000 | +₹18,769 | ₹108,769 |
| Year 4 | ₹120,000 | +₹34,587 | ₹154,587 |
| Year 5 | ₹150,000 | +₹56,216 | ₹206,216 |
| Year 6 | ₹180,000 | +₹84,393 | ₹264,393 |
| Year 7 | ₹210,000 | +₹119,947 | ₹329,947 |
| Year 8 | ₹240,000 | +₹163,816 | ₹403,816 |
| Year 9 | ₹270,000 | +₹217,054 | ₹487,054 |
| Year 10 | ₹300,000 | +₹280,848 | ₹580,848 |
| Year 11 | ₹330,000 | +₹356,537 | ₹686,537 |
| Year 12 | ₹360,000 | +₹445,630 | ₹805,630 |
| Year 13 | ₹390,000 | +₹549,828 | ₹939,828 |
| Year 14 | ₹420,000 | +₹671,045 | ₹1,091,045 |
| Year 15 | ₹450,000 | +₹811,440 | ₹1,261,440 |
| Year 16 | ₹480,000 | +₹973,445 | ₹1,453,445 |
| Year 17 | ₹510,000 | +₹1,159,802 | ₹1,669,802 |
| Year 18 | ₹540,000 | +₹1,373,598 | ₹1,913,598 |
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Frequently Asked Questions
How much will ₹2,500 invested monthly in SIP become after 18 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹2,500 for 18 years generates a maturity corpus of approximately ₹1,913,598 against an invested principal of ₹540,000, earning a wealth gain of ₹1,373,598.
What is the tax on the returns of ₹2,500 SIP after 18 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 ₹156,075, leaving a net post-tax maturity value of ₹1,757,523.
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 ₹1,026,377. An equity SIP at 12% delivers ₹1,913,598, generating ₹887,221 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 18 years, the purchasing power of your ₹1,913,598 maturity corpus will be equivalent to approximately ₹670,417 in today's money.
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