How accurate is a SIP calculator?▾
It is exact for a constant return. Real mutual fund returns vary every month, so treat the result as an estimate of what the expected average return would produce.
What return should I assume for SIP?▾
Many planners use 10–12% for diversified equity funds over 10+ years, 8–9% for hybrid funds and 6–7% for debt funds. Being conservative avoids under-saving.
What is a step-up SIP?▾
A step-up (top-up) SIP increases the monthly instalment by a fixed percentage every year. Even a 10% step-up greatly increases the final corpus.
Are SIP returns taxable?▾
Yes. Equity fund gains held over 12 months are long-term capital gains taxed at 12.5% above ₹1.25 lakh a year; shorter holdings are taxed at 20%. Debt fund gains are taxed at slab rates.
