SIP of ₹4,000 per Month for 3 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹4,000 monthly over a 3-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 | +₹15,385 | ₹159,385 |
| Public Provident Fund (PPF) | 7.1% | ₹144,000 | +₹16,907 | ₹160,907 |
| Conservative Hybrid Funds | 8.0% | ₹144,000 | +₹19,223 | ₹163,223 |
| Large Cap / Nifty 50 Index | 10.0% | ₹144,000 | +₹24,520 | ₹168,520 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹144,000 | +₹30,031 | ₹174,031 |
| Mid Cap / Small Cap Funds | 15.0% | ₹144,000 | +₹38,718 | ₹182,718 |
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 |
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Frequently Asked Questions
How much will ₹4,000 invested monthly in SIP become after 3 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹4,000 for 3 years generates a maturity corpus of approximately ₹174,031 against an invested principal of ₹144,000, earning a wealth gain of ₹30,031.
What is the tax on the returns of ₹4,000 SIP after 3 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 ₹174,031.
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 ₹159,385. An equity SIP at 12% delivers ₹174,031, generating ₹14,645 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 3 years, the purchasing power of your ₹174,031 maturity corpus will be equivalent to approximately ₹146,119 in today's money.
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