SIP of ₹3,000 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹3,000 monthly over a 4-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% | ₹144,000 | +₹20,838 | ₹164,838 |
| Public Provident Fund (PPF) | 7.1% | ₹144,000 | +₹22,948 | ₹166,948 |
| Conservative Hybrid Funds | 8.0% | ₹144,000 | +₹26,177 | ₹170,177 |
| Large Cap / Nifty 50 Index | 10.0% | ₹144,000 | +₹33,636 | ₹177,636 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹144,000 | +₹41,504 | ₹185,504 |
| Mid Cap / Small Cap Funds | 15.0% | ₹144,000 | +₹54,131 | ₹198,131 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹36,000 | +₹2,428 | ₹38,428 |
| Year 2 | ₹72,000 | +₹9,730 | ₹81,730 |
| Year 3 | ₹108,000 | +₹22,523 | ₹130,523 |
| Year 4 | ₹144,000 | +₹41,504 | ₹185,504 |
Invest in 0% Commission Direct Mutual Funds
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Frequently Asked Questions
How much will ₹3,000 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹3,000 for 4 years generates a maturity corpus of approximately ₹185,504 against an invested principal of ₹144,000, earning a wealth gain of ₹41,504.
What is the tax on the returns of ₹3,000 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 ₹0, leaving a net post-tax maturity value of ₹185,504.
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 ₹164,838. An equity SIP at 12% delivers ₹185,504, generating ₹20,667 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 ₹185,504 maturity corpus will be equivalent to approximately ₹146,937 in today's money.
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