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.

Total Principal Invested
₹480,000
120 monthly installments
Est. Wealth Gain (@ 12%)
+₹449,356
93.6% gain on invested
Expected Maturity Value
₹929,356
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹888,812
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity 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)

TimelineInvested PrincipalGrowth / GainsTotal 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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