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.
Returns Across Different Asset Classes
| Asset Class / Style | Expected CAGR | Total Invested | Estimated Returns | Maturity 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)
| Timeline | Invested Principal | Growth / Gains | Total 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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