SIP of ₹25,000 per Month for 5 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹25,000 monthly over a 5-year investment horizon.

Total Principal Invested
₹1,500,000
60 monthly installments
Est. Wealth Gain (@ 12%)
+₹562,159
37.5% gain on invested
Expected Maturity Value
₹2,062,159
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹2,007,514
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹1,500,000 +₹276,420 ₹1,776,420
Public Provident Fund (PPF) 7.1% ₹1,500,000 +₹305,080 ₹1,805,080
Conservative Hybrid Funds 8.0% ₹1,500,000 +₹349,168 ₹1,849,168
Large Cap / Nifty 50 Index 10.0% ₹1,500,000 +₹452,060 ₹1,952,060
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹1,500,000 +₹562,159 ₹2,062,159
Mid Cap / Small Cap Funds 15.0% ₹1,500,000 +₹742,042 ₹2,242,042

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

TimelineInvested PrincipalGrowth / GainsTotal Corpus Value
Year 1 ₹300,000 +₹20,233 ₹320,233
Year 2 ₹600,000 +₹81,080 ₹681,080
Year 3 ₹900,000 +₹187,691 ₹1,087,691
Year 4 ₹1,200,000 +₹345,871 ₹1,545,871
Year 5 ₹1,500,000 +₹562,159 ₹2,062,159

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Frequently Asked Questions

How much will ₹25,000 invested monthly in SIP become after 5 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹25,000 for 5 years generates a maturity corpus of approximately ₹2,062,159 against an invested principal of ₹1,500,000, earning a wealth gain of ₹562,159.

What is the tax on the returns of ₹25,000 SIP after 5 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 ₹54,645, leaving a net post-tax maturity value of ₹2,007,514.

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 ₹1,776,420. An equity SIP at 12% delivers ₹2,062,159, generating ₹285,740 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 5 years, the purchasing power of your ₹2,062,159 maturity corpus will be equivalent to approximately ₹1,540,965 in today's money.

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