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.

Total Principal Invested
₹300,000
60 monthly installments
Est. Wealth Gain (@ 12%)
+₹112,432
37.5% gain on invested
Expected Maturity Value
₹412,432
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹412,432
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity 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)

TimelineInvested PrincipalGrowth / GainsTotal 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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