SIP Calculator
Calculate returns on your Systematic Investment Plan (SIP) for mutual funds and investments.
Calculate SIP Returns
SIP Results
How SIP works
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. It's a disciplined way to build wealth through rupee cost averaging and compounding.
FV = P × [(1 + r)^n - 1] / r × (1 + r)Where:
P = Monthly investment amount
r = Expected monthly rate of return (annual rate / 12 / 100)
n = Total number of months
FV = Future value (maturity amount)
Example:
Monthly SIP: NPR 5,000
Expected return: 12% per year
Duration: 10 years
Maturity value: NPR 11.5 lakh
Total invested: NPR 6 lakh
Wealth gain: NPR 5.5 lakh
Benefits of SIP investing
- Rupee cost averaging: Buy more units when prices are low, fewer when high. Reduces timing risk.
- Power of compounding: Returns generate more returns over time. Start early to maximize gains.
- Disciplined investing: Auto-debit ensures regular investing without emotional decisions.
- Flexibility: Start with as low as NPR 1,000/month. Increase, decrease, or pause anytime.
- Affordable: No need for large lump sum. Build wealth gradually with small amounts.
FAQs
What is the minimum SIP amount in Nepal?
Most mutual funds in Nepal allow SIP starting from NPR 1,000-2,000 per month. Some funds may have higher minimums.
Can I stop SIP anytime?
Yes! SIPs are flexible. You can pause, stop, or increase your SIP without penalties. However, staying invested longer gives better returns.
What's a realistic return for SIP?
Equity mutual funds: 10-15% long-term (10+ years). Debt funds: 6-9%. Hybrid funds: 8-12%. Past performance doesn't guarantee future returns.
When is the best time to start SIP?
Now! The earlier you start, the more you benefit from compounding. Don't try to time the market.
Should I do lump sum or SIP?
SIP is better for most people: reduces risk, builds discipline, and doesn't require timing the market. Do both if you have extra money.
What is step-up SIP?
Increase your SIP amount annually (e.g., 10% each year). Helps keep up with inflation and salary increases, accelerating wealth creation.