SIP of ₹5,000 per Month for 5 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹5,000 monthly over a 5-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% | ₹300,000 | +₹55,284 | ₹355,284 |
| Public Provident Fund (PPF) | 7.1% | ₹300,000 | +₹61,016 | ₹361,016 |
| Conservative Hybrid Funds | 8.0% | ₹300,000 | +₹69,834 | ₹369,834 |
| Large Cap / Nifty 50 Index | 10.0% | ₹300,000 | +₹90,412 | ₹390,412 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹300,000 | +₹112,432 | ₹412,432 |
| Mid Cap / Small Cap Funds | 15.0% | ₹300,000 | +₹148,408 | ₹448,408 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹60,000 | +₹4,047 | ₹64,047 |
| Year 2 | ₹120,000 | +₹16,216 | ₹136,216 |
| Year 3 | ₹180,000 | +₹37,538 | ₹217,538 |
| Year 4 | ₹240,000 | +₹69,174 | ₹309,174 |
| Year 5 | ₹300,000 | +₹112,432 | ₹412,432 |
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Frequently Asked Questions
How much will ₹5,000 invested monthly in SIP become after 5 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹5,000 for 5 years generates a maturity corpus of approximately ₹412,432 against an invested principal of ₹300,000, earning a wealth gain of ₹112,432.
What is the tax on the returns of ₹5,000 SIP after 5 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 ₹412,432.
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 ₹355,284. An equity SIP at 12% delivers ₹412,432, generating ₹57,148 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 5 years, the purchasing power of your ₹412,432 maturity corpus will be equivalent to approximately ₹308,193 in today's money.
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