SIP of ₹3,500 per Month for 5 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹3,500 monthly over a 5-year investment horizon.

Total Principal Invested
₹210,000
60 monthly installments
Est. Wealth Gain (@ 12%)
+₹78,702
37.5% gain on invested
Expected Maturity Value
₹288,702
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹288,702
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹210,000 +₹38,699 ₹248,699
Public Provident Fund (PPF) 7.1% ₹210,000 +₹42,711 ₹252,711
Conservative Hybrid Funds 8.0% ₹210,000 +₹48,883 ₹258,883
Large Cap / Nifty 50 Index 10.0% ₹210,000 +₹63,288 ₹273,288
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹210,000 +₹78,702 ₹288,702
Mid Cap / Small Cap Funds 15.0% ₹210,000 +₹103,886 ₹313,886

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

TimelineInvested PrincipalGrowth / GainsTotal 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
Year 5 ₹210,000 +₹78,702 ₹288,702

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Frequently Asked Questions

How much will ₹3,500 invested monthly in SIP become after 5 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹3,500 for 5 years generates a maturity corpus of approximately ₹288,702 against an invested principal of ₹210,000, earning a wealth gain of ₹78,702.

What is the tax on the returns of ₹3,500 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 ₹0, leaving a net post-tax maturity value of ₹288,702.

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 ₹248,699. An equity SIP at 12% delivers ₹288,702, generating ₹40,004 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 ₹288,702 maturity corpus will be equivalent to approximately ₹215,735 in today's money.

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