A SIP (Systematic Investment Plan) invests a fixed amount at regular intervals — usually monthly — instead of putting in a lump sum at one point. SIPs benefit from dollar-cost averaging (you buy more units when prices are low) and remove the need to time the market.

The standard formula is FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly rate (annual rate divided by 12, then by 100), and n is the number of months. This calculator uses that formula with monthly compounding.

Historical equity mutual funds in India have averaged around 11–13% per year over long periods, while balanced funds tend to deliver 9–11%. Use a conservative rate (10–12%) for long-term planning and a lower rate (6–8%) for shorter horizons or debt-heavy portfolios.

Yes — that's called a step-up SIP. Increasing your contribution by 10–15% every year, in line with salary growth, can significantly boost your final corpus. Most fund houses and brokerages support step-up SIP automation.

Pausing a SIP during downturns is one of the most common mistakes — those are the months when you buy the most units per rupee. Staying invested through volatility is what lets compounding deliver its biggest gains in the later years.

For long horizons (10+ years), equity SIPs typically outperform fixed deposits because they capture market returns plus compounding. Fixed deposits offer safety and predictable returns and remain useful for short-term goals or emergency funds.