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.
Returns Across Different Asset Classes
| Asset Class / Style | Expected CAGR | Total Invested | Estimated Returns | Maturity 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)
| Timeline | Invested Principal | Growth / Gains | Total 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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