What is SIP? A practical introduction
A Systematic Investment Plan, or SIP, is a way to invest a fixed amount at regular intervals into a mutual fund. It describes how you contribute; it is not a separate asset class or a guarantee of returns.
How regular contributions work
Your contribution buys units at the applicable net asset value. When the unit price is lower, the same contribution buys more units. When it is higher, it buys fewer. This is often called rupee-cost averaging. It does not prevent losses or assure a profit.
Compounding and time
Investment gains can themselves participate in future growth. The calculator models this with a constant monthly rate. Markets behave differently: returns fluctuate, and a negative period can reduce your balance even while you keep contributing.
Try a planning example
Start with ₹10,000 per month over 10 years, then compare several return assumptions. You will contribute ₹12 lakh in total. Changing the expected return changes the estimated final value; it does not change your contribution total.
Before you invest
Consider your time horizon, capacity for loss, emergency savings, fees and taxes. Review the scheme documents and seek qualified advice when needed. Use the calculator to explore scenarios, not to select a fund.