About This Calculation
A regular monthly investment of ₹2,000 can lead to significant wealth creation over 10 years at an expected rate of 12%.
Compounding works best when you stay invested for long durations. This calculation demonstrates the power of regular saving.
How the Formula Works
SIP returns are calculated using the Future Value of Annuity Due formula: FV = P × [((1 + r)^n - 1) / r] × (1 + r).
Frequently Asked Questions
Is 12% return guaranteed? +
No, mutual fund returns are subject to market risks.
Can I stop my SIP anytime? +
Yes, SIPs are flexible and can be paused or stopped without major penalties in most funds.
What is the wealth ratio? +
It is the ratio of your final maturity value to your total invested amount.
Results are for informational and educational purposes only. This is not financial advice. Consult a professional advisor before making financial decisions.