Boond
How a SIP grows
A SIP (systematic investment plan) puts the same amount into a mutual fund every month. Each instalment earns returns, and those returns earn returns too. That's why the growth part is small for the first few years and then takes over: in a 20-year SIP at 12%, about two-thirds of the final amount is growth, not money you put in.
Boond uses the same method most fund houses use: the yearly rate is split into a monthly rate, and each instalment is invested at the start of the month.
Total = M × [((1 + i)n − 1) ÷ i] × (1 + i)
M is the monthly amount, i is the monthly rate (12% a year → 0.01) and n is the number of months.
₹5,000 a month at different returns
| Years | Put in | At 10% | At 12% |
|---|
Popular SIP amounts
- ₹1,000 for 10 years
- ₹2,000 for 15 years
- ₹5,000 for 10 years
- ₹5,000 for 20 years
- ₹10,000 for 10 years
- ₹10,000 for 20 years
- ₹25,000 for 15 years
- All SIP amounts
SIP needed for a goal
- ₹1 crore in 10 years
- ₹1 crore in 15 years
- ₹1 crore in 20 years
- ₹50 lakh in 10 years
- ₹25 lakh in 5 years
- All goals
Questions
What return should I assume?
Nobody knows future returns. Large equity index funds in India have given roughly 11–13% a year over long periods, with big swings in between. Debt funds and FDs are closer to 6–7.5%. If you're planning something important, run the numbers at 10% as well as 12%.
What does "in today's money" mean?
Prices rise every year, so ₹1 crore in 20 years will buy much less than ₹1 crore today. Boond divides the future amount by 6% inflation a year to show roughly what it would feel like today.
Is tax included?
No. Equity mutual fund gains above ₹1.25 lakh a year are taxed at 12.5% when you sell after a year (long-term capital gains). The numbers here are before tax.
SIP or lumpsum, which is better?
A lumpsum has more time in the market, so it usually ends higher if markets rise steadily. A SIP spreads your buying over many months, which feels easier and suits a monthly salary. Use the One-time tab to compare the same total both ways.
Does Boond save what I type?
No. The maths runs in your browser. Nothing is sent anywhere.
Boond is a calculator, not investment advice. Mutual fund investments are subject to market risks. Returns shown are estimates based on the rate you choose.