Why SIPs Beat Fixed Deposits: A ₹10,000/Month Case Study
Rahul, 25, invests ₹10k monthly via SIPs in equity funds. Assuming 12% annual returns:
| Tenure | Total Invested | Estimated Value | Gains |
|---|---|---|---|
| 10 Years | ₹12L | ₹23.2L | ₹11.2L (93% returns) |
| 20 Years | ₹24L | ₹98.9L | ₹74.9L (312% returns) |
Compare this to a 7% FD: ₹17.2L after 20 years. SIPs generated ₹81.7L extra!
5-Step Strategy to Maximize SIP Returns
Step 1: Set Financial Goals
Use our Goal Planner to calculate required SIP amounts. Example:
- Child’s college fund: ₹50L in 15 years → ₹12,500/month at 12%
- Retirement corpus: ₹5Cr in 30 years → ₹17,300/month
Step 2: Use the "Step-Up SIP" Feature
Increase investments by 10% annually. Starting with ₹10k/month:
- Year 1: ₹1.2L invested
- Year 5: ₹1.8L/year
- Year 10: ₹2.85L/year
This boosts final corpus by 35-50% compared to fixed SIPs.
Step 3: Tax Optimization with ELSS
Investing ₹1.5L annually in ELSS funds:
- Tax saved: ₹46.8K (31.2% tax slab)
- Post-tax returns: 12% CAGR vs FD’s 4.9% post-tax
Step 4: Rebalance with Debt Funds
Shift 5-10% to debt funds when nearing goals. For a ₹50L corpus:
- 100% equity: Could drop to ₹35L in a crash
- 80% equity + 20% debt: Limits downside to ₹42L
Step 5: Track with XIRR
Use our XIRR Calculator for irregular SIPs. Input dates/amounts to get personalized returns.
The Power of Starting Early: ₹5k/Month at Different Ages
| Starting Age | Corpus at 60 (12% returns) | Total Invested |
|---|---|---|
| 25 | ₹7.3Cr | ₹21L |
| 35 | ₹2.2Cr | ₹15L |
| 45 | ₹58L | ₹9L |
Lesson: A 10-year delay costs ₹6.7Cr in potential growth!
How to Use the Teddy Jewellers SIP Calculator
1. Basic Mode
- Monthly SIP: ₹500 to ₹10L
- Tenure: 1 year to 30 years
- Expected Returns: 8% to 18%
Example Output: ₹15k/month for 20 years at 12% = ₹1.48Cr
2. Advanced Features
- Inflation Adjustment: See real-value (₹10L today = ₹21.7L in 20 years at 5% inflation)
- Yearly Step-Up: Auto-increase SIP by 5-25% annually
- Withdrawal Phase: Plan SWPs (Systematic Withdrawal Plans) post-retirement
Common SIP Mistakes to Avoid
1. Stopping SIPs During Market Drops
Continuing SIPs in a crash buys more units. Stopping a ₹10k SIP during a 30% crash loses 1,200+ units over 6 months.
2. Ignoring Expense Ratios
A 2% fee reduces a ₹1Cr corpus to ₹82L over 20 years. Use our "Expense Ratio Impact" tab.
Conclusion: Your Path to Financial Freedom
Whether you’re 20 or 50, our Investment & SIP Calculator turns small monthly sums into life-changing wealth. Start with ₹500/month and increase as income grows!