SIP of ₹4,500 per Month for 18 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹4,500 monthly over a 18-year investment horizon.

Total Principal Invested
₹972,000
216 monthly installments
Est. Wealth Gain (@ 12%)
+₹2,472,477
254.4% gain on invested
Expected Maturity Value
₹3,444,477
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹3,151,042
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹972,000 +₹875,478 ₹1,847,478
Public Provident Fund (PPF) 7.1% ₹972,000 +₹998,774 ₹1,970,774
Conservative Hybrid Funds 8.0% ₹972,000 +₹1,202,790 ₹2,174,790
Large Cap / Nifty 50 Index 10.0% ₹972,000 +₹1,753,056 ₹2,725,056
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹972,000 +₹2,472,477 ₹3,444,477
Mid Cap / Small Cap Funds 15.0% ₹972,000 +₹3,997,149 ₹4,969,149

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

TimelineInvested PrincipalGrowth / GainsTotal Corpus Value
Year 1 ₹54,000 +₹3,642 ₹57,642
Year 2 ₹108,000 +₹14,594 ₹122,594
Year 3 ₹162,000 +₹33,784 ₹195,784
Year 4 ₹216,000 +₹62,257 ₹278,257
Year 5 ₹270,000 +₹101,189 ₹371,189
Year 6 ₹324,000 +₹151,907 ₹475,907
Year 7 ₹378,000 +₹215,905 ₹593,905
Year 8 ₹432,000 +₹294,870 ₹726,870
Year 9 ₹486,000 +₹390,697 ₹876,697
Year 10 ₹540,000 +₹505,526 ₹1,045,526
Year 11 ₹594,000 +₹641,767 ₹1,235,767
Year 12 ₹648,000 +₹802,135 ₹1,450,135
Year 13 ₹702,000 +₹989,690 ₹1,691,690
Year 14 ₹756,000 +₹1,207,881 ₹1,963,881
Year 15 ₹810,000 +₹1,460,592 ₹2,270,592
Year 16 ₹864,000 +₹1,752,202 ₹2,616,202
Year 17 ₹918,000 +₹2,087,644 ₹3,005,644
Year 18 ₹972,000 +₹2,472,477 ₹3,444,477

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Frequently Asked Questions

How much will ₹4,500 invested monthly in SIP become after 18 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹4,500 for 18 years generates a maturity corpus of approximately ₹3,444,477 against an invested principal of ₹972,000, earning a wealth gain of ₹2,472,477.

What is the tax on the returns of ₹4,500 SIP after 18 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 ₹293,435, leaving a net post-tax maturity value of ₹3,151,042.

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 ₹1,847,478. An equity SIP at 12% delivers ₹3,444,477, generating ₹1,596,998 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 18 years, the purchasing power of your ₹3,444,477 maturity corpus will be equivalent to approximately ₹1,206,751 in today's money.

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