SIP of ₹4,000 per Month for 10 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹4,000 monthly over a 10-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% | ₹480,000 | +₹197,261 | ₹677,261 |
| Public Provident Fund (PPF) | 7.1% | ₹480,000 | +₹220,281 | ₹700,281 |
| Conservative Hybrid Funds | 8.0% | ₹480,000 | +₹256,663 | ₹736,663 |
| Large Cap / Nifty 50 Index | 10.0% | ₹480,000 | +₹346,208 | ₹826,208 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹480,000 | +₹449,356 | ₹929,356 |
| Mid Cap / Small Cap Funds | 15.0% | ₹480,000 | +₹634,629 | ₹1,114,629 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹48,000 | +₹3,237 | ₹51,237 |
| Year 2 | ₹96,000 | +₹12,973 | ₹108,973 |
| Year 3 | ₹144,000 | +₹30,031 | ₹174,031 |
| Year 4 | ₹192,000 | +₹55,339 | ₹247,339 |
| Year 5 | ₹240,000 | +₹89,945 | ₹329,945 |
| Year 6 | ₹288,000 | +₹135,028 | ₹423,028 |
| Year 7 | ₹336,000 | +₹191,916 | ₹527,916 |
| Year 8 | ₹384,000 | +₹262,106 | ₹646,106 |
| Year 9 | ₹432,000 | +₹347,286 | ₹779,286 |
| Year 10 | ₹480,000 | +₹449,356 | ₹929,356 |
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Frequently Asked Questions
How much will ₹4,000 invested monthly in SIP become after 10 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹4,000 for 10 years generates a maturity corpus of approximately ₹929,356 against an invested principal of ₹480,000, earning a wealth gain of ₹449,356.
What is the tax on the returns of ₹4,000 SIP after 10 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 ₹40,545, leaving a net post-tax maturity value of ₹888,812.
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 ₹677,261. An equity SIP at 12% delivers ₹929,356, generating ₹252,095 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 10 years, the purchasing power of your ₹929,356 maturity corpus will be equivalent to approximately ₹518,948 in today's money.
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