What is SIP?

Systematic Investment Plan (SIP) is a disciplined way of investing a fixed amount regularly in mutual funds.

How is SIP Calculated?

Formula: FV = P × [(1 + r/n)^(nt) – 1] / (r/n) × (1 + r/n)

Where:
P = Monthly Investment Amount
r = Annual Interest Rate (decimal)
n = Number of times interest is compounded (12 for monthly SIP)
t = Number of years

Benefits of SIP Investment

• Encourages disciplined investing
• Reduces market risk through rupee cost averaging
• Enables wealth creation over time