Wish to invest periodically? Calculate the amount of wealth that you can generate using our SIP Calculator.
Understanding SIP, Step-Up SIP, and Lumpsum Investments
What is SIP?
A Systematic Investment Plan (SIP) is a disciplined investment approach where you invest a fixed amount regularly (usually monthly) into mutual funds. SIPs help in building wealth over time through the power of compounding and rupee cost averaging.
Key Benefits of SIP:
A Step-Up SIP is an enhanced version of the regular SIP. Here, your monthly investment amount increases by a fixed percentage every year. This aligns your investment growth with your income growth.
Example:
If your SIP is ₹5,000 per month and you step it up by 10% annually, next year it becomes ₹5,500 per month, then ₹6,050 in the following year, and so on.
Advantages of Step-Up SIP:
Helps you invest more without feeling a financial burden.
Significantly improves long-term wealth creation.
Ideal for young investors who expect salary hikes over time.
What is Lumpsum Investment?
A Lumpsum Investment is a one-time investment of a larger amount into mutual funds or other instruments. It’s suitable when you have surplus cash available and want to grow it over a long period.
Best for:
Investors with idle funds.
Those willing to take higher market timing risk for potentially higher returns.
Why Use This SIP & Lumpsum Calculator?
This calculator is designed to help you:
Compare different investment modes (SIP, Step-Up SIP, Lumpsum).
Visualize how your investment grows over the years.
Understand how returns and invested amount contribute to future value.
Customize inputs easily using sliders or manual values.
The calculator shows:
Total Invested Amount
Estimated Returns
total Future Value
it also displays a pie chart that clearly separates your investment and return portion.
Step-Up SIP option is automatically hidden when you select Lumpsum, keeping the interface clean and relevant.