Learn how systematic investment plans work, why returns fluctuate, and how to use projections responsibly when planning long-term investments.
Use Mutual Fund CalculatorA Systematic Investment Plan (SIP) is a way to invest a fixed amount into a mutual fund at regular intervals, usually monthly. Each payment purchases fund units at the current Net Asset Value (NAV). Because NAV changes over time, the number of units purchased also changes.
A SIP is an investment method, not a separate investment product and not a guaranteed-return plan.
Net Asset Value is the per-unit value of a mutual fund. It moves up or down with the value of the fund’s underlying assets.
Units are the portions of the fund you own. Investment amount divided by NAV determines the units purchased.
When returns remain invested, future gains may be calculated on both the original amount and prior gains.
Suppose you invest ₹5,000 every month. In month one, NAV is ₹50, so you receive 100 units. In month two, NAV is ₹40, so you receive 125 units. You have invested ₹10,000 and own 225 units.
If the NAV later becomes ₹48, your estimated value is 225 × ₹48 = ₹10,800. This example ignores taxes, exit loads, fees, and timing differences, and is not a prediction of returns.
No. Mutual fund values can rise or fall. A SIP may reduce the need to time every purchase, but it does not protect against loss or guarantee a return.
Calculators use assumed rates and simplified timing. Actual results depend on NAV on each transaction date, expenses, taxes, fund performance, and transaction processing.
Many providers allow changes, pauses, or cancellations, subject to their terms. Check your platform or fund provider’s process before making a decision.
No. Past performance does not guarantee future performance. Consider risk, objective, costs, horizon, and suitability, not only a historical return figure.