SIP of ₹25,000 per Month for 6 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹25,000 monthly over a 6-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% | ₹1,800,000 | +₹406,165 | ₹2,206,165 |
| Public Provident Fund (PPF) | 7.1% | ₹1,800,000 | +₹449,286 | ₹2,249,286 |
| Conservative Hybrid Funds | 8.0% | ₹1,800,000 | +₹515,971 | ₹2,315,971 |
| Large Cap / Nifty 50 Index | 10.0% | ₹1,800,000 | +₹673,223 | ₹2,473,223 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹1,800,000 | +₹843,926 | ₹2,643,926 |
| Mid Cap / Small Cap Funds | 15.0% | ₹1,800,000 | +₹1,127,989 | ₹2,927,989 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total 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 |
| Year 6 | ₹1,800,000 | +₹843,926 | ₹2,643,926 |
Invest in 0% Commission Direct Mutual Funds
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Frequently Asked Questions
How much will ₹25,000 invested monthly in SIP become after 6 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹25,000 for 6 years generates a maturity corpus of approximately ₹2,643,926 against an invested principal of ₹1,800,000, earning a wealth gain of ₹843,926.
What is the tax on the returns of ₹25,000 SIP after 6 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 ₹89,866, leaving a net post-tax maturity value of ₹2,554,060.
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 ₹2,206,165. An equity SIP at 12% delivers ₹2,643,926, generating ₹437,761 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 6 years, the purchasing power of your ₹2,643,926 maturity corpus will be equivalent to approximately ₹1,863,863 in today's money.
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