SIP of ₹8,000 per Month for 5 Years

Complete compounding breakdown for a Systematic Investment Plan (SIP) of ₹8,000 monthly over a 5-year investment horizon.

Total Principal Invested
₹480,000
60 monthly installments
Est. Wealth Gain (@ 12%)
+₹179,891
37.5% gain on invested
Expected Maturity Value
₹659,891
Assumes 12% diversified equity CAGR
Post-Tax Value (12.5% LTCG)
₹653,030
After ₹1.25L exemption

Returns Across Different Asset Classes

Asset Class / StyleExpected CAGRTotal InvestedEstimated ReturnsMaturity Corpus
Bank Recurring Deposit (RD) 6.5% ₹480,000 +₹88,454 ₹568,454
Public Provident Fund (PPF) 7.1% ₹480,000 +₹97,626 ₹577,626
Conservative Hybrid Funds 8.0% ₹480,000 +₹111,734 ₹591,734
Large Cap / Nifty 50 Index 10.0% ₹480,000 +₹144,659 ₹624,659
Diversified Equity (Flexi Cap / Multicap) 12.0% ₹480,000 +₹179,891 ₹659,891
Mid Cap / Small Cap Funds 15.0% ₹480,000 +₹237,454 ₹717,454

Year-by-Year Wealth Accumulation Schedule (@ 12% CAGR)

TimelineInvested PrincipalGrowth / GainsTotal Corpus Value
Year 1 ₹96,000 +₹6,475 ₹102,475
Year 2 ₹192,000 +₹25,946 ₹217,946
Year 3 ₹288,000 +₹60,061 ₹348,061
Year 4 ₹384,000 +₹110,679 ₹494,679
Year 5 ₹480,000 +₹179,891 ₹659,891

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Frequently Asked Questions

How much will ₹8,000 invested monthly in SIP become after 5 years?

At a standard historical equity index return of 12% CAGR, a monthly SIP of ₹8,000 for 5 years generates a maturity corpus of approximately ₹659,891 against an invested principal of ₹480,000, earning a wealth gain of ₹179,891.

What is the tax on the returns of ₹8,000 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 ₹6,861, leaving a net post-tax maturity value of ₹653,030.

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 ₹568,454. An equity SIP at 12% delivers ₹659,891, generating ₹91,437 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 ₹659,891 maturity corpus will be equivalent to approximately ₹493,109 in today's money.

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