Financial Tools
SIP & Wealth Planner
Visualize the power of compounding. Plan your mutual fund investments to reach your long-term financial goals.
Frequently Asked Questions
What return rate should I assume when planning a SIP?
Equity mutual fund SIPs in India have historically delivered 10-14% annualized returns over long periods (10+ years), though returns are not guaranteed and vary by fund and market cycle. A conservative planning assumption of 10-12% is common; using a higher rate like 15%+ risks overestimating your future corpus.
Is SIP investment tax-free in India?
No, SIP investments themselves are not tax-free unless made through an ELSS (tax-saving) mutual fund, which qualifies for deduction up to ₹1.5 lakh under Section 80C. Returns from equity mutual fund SIPs are subject to capital gains tax: 12.5% LTCG (over ₹1.25 lakh/year) if held beyond 12 months, or 20% STCG if held 12 months or less.
What is the power of compounding in SIP investments?
Compounding means your investment returns are reinvested and start earning their own returns. In a SIP, each monthly instalment compounds over the remaining investment period, so contributions made early grow for longer and contribute disproportionately more to the final corpus than later contributions.
Can I change or stop my SIP amount later?
Yes. SIPs in India are flexible — you can increase the instalment amount (step-up SIP), pause it temporarily, or stop it altogether without any penalty from the mutual fund house, though exit load may apply depending on the fund and holding period.