SIP of ₹3,500 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹3,500 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% | ₹168,000 | +₹24,311 | ₹192,311 |
| Public Provident Fund (PPF) | 7.1% | ₹168,000 | +₹26,773 | ₹194,773 |
| Conservative Hybrid Funds | 8.0% | ₹168,000 | +₹30,540 | ₹198,540 |
| Large Cap / Nifty 50 Index | 10.0% | ₹168,000 | +₹39,241 | ₹207,241 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹168,000 | +₹48,422 | ₹216,422 |
| Mid Cap / Small Cap Funds | 15.0% | ₹168,000 | +₹63,153 | ₹231,153 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹42,000 | +₹2,833 | ₹44,833 |
| Year 2 | ₹84,000 | +₹11,351 | ₹95,351 |
| Year 3 | ₹126,000 | +₹26,277 | ₹152,277 |
| Year 4 | ₹168,000 | +₹48,422 | ₹216,422 |
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Frequently Asked Questions
How much will ₹3,500 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹3,500 for 4 years generates a maturity corpus of approximately ₹216,422 against an invested principal of ₹168,000, earning a wealth gain of ₹48,422.
What is the tax on the returns of ₹3,500 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 ₹216,422.
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 ₹192,311. An equity SIP at 12% delivers ₹216,422, generating ₹24,111 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 ₹216,422 maturity corpus will be equivalent to approximately ₹171,426 in today's money.
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