SIP of ₹6,000 per Month for 4 Years
Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹6,000 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% | ₹288,000 | +₹41,676 | ₹329,676 |
| Public Provident Fund (PPF) | 7.1% | ₹288,000 | +₹45,896 | ₹333,896 |
| Conservative Hybrid Funds | 8.0% | ₹288,000 | +₹52,353 | ₹340,353 |
| Large Cap / Nifty 50 Index | 10.0% | ₹288,000 | +₹67,271 | ₹355,271 |
| Diversified Equity (Flexi Cap / Multicap) | 12.0% | ₹288,000 | +₹83,009 | ₹371,009 |
| Mid Cap / Small Cap Funds | 15.0% | ₹288,000 | +₹108,262 | ₹396,262 |
Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)
| Timeline | Invested Principal | Growth / Gains | Total Corpus Value |
|---|---|---|---|
| Year 1 | ₹72,000 | +₹4,856 | ₹76,856 |
| Year 2 | ₹144,000 | +₹19,459 | ₹163,459 |
| Year 3 | ₹216,000 | +₹45,046 | ₹261,046 |
| Year 4 | ₹288,000 | +₹83,009 | ₹371,009 |
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Frequently Asked Questions
How much will ₹6,000 invested monthly in SIP become after 4 years?
At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹6,000 for 4 years generates a maturity corpus of approximately ₹371,009 against an invested principal of ₹288,000, earning a wealth gain of ₹83,009.
What is the tax on the returns of ₹6,000 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 ₹0, leaving a net post-tax maturity value of ₹371,009.
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 ₹329,676. An equity SIP at 12% delivers ₹371,009, generating ₹41,333 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 ₹371,009 maturity corpus will be equivalent to approximately ₹293,874 in today's money.
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