SIP of ₹50,000 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹50,000 monthly over a 4-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% | ₹2,400,000 | +₹347,297 | ₹2,747,297 |
| Public Provident Fund (PPF) | 7.1% | ₹2,400,000 | +₹382,465 | ₹2,782,465 |
| Conservative Hybrid Funds | 8.0% | ₹2,400,000 | +₹436,279 | ₹2,836,279 |
| Large Cap / Nifty 50 Index | 10.0% | ₹2,400,000 | +₹560,592 | ₹2,960,592 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹2,400,000 | +₹691,742 | ₹3,091,742 |
| Mid Cap / Small Cap Funds | 15.0% | ₹2,400,000 | +₹902,187 | ₹3,302,187 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹600,000 | +₹40,466 | ₹640,466 |
| Year 2 | ₹1,200,000 | +₹162,160 | ₹1,362,160 |
| Year 3 | ₹1,800,000 | +₹375,382 | ₹2,175,382 |
| Year 4 | ₹2,400,000 | +₹691,742 | ₹3,091,742 |
Invest in 0% Commission Direct Mutual Funds
Start a monthly SIP on Zerodha Coin or Groww with zero distributor commissions.
Frequently Asked Questions
How much will ₹50,000 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹50,000 for 4 years generates a maturity corpus of approximately ₹3,091,742 against an invested principal of ₹2,400,000, earning a wealth gain of ₹691,742.
What is the tax on the returns of ₹50,000 SIP after 4 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 ₹70,843, leaving a net post-tax maturity value of ₹3,020,899.
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 ₹2,747,297. An equity SIP at 12% delivers ₹3,091,742, generating ₹344,444 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 4 years, the purchasing power of your ₹3,091,742 maturity corpus will be equivalent to approximately ₹2,448,949 in today's money.
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