How SIP returns are calculated
This uses the future value of a monthly investment: FV = P × ((1+r)n − 1) ÷ r × (1+r), where r is the monthly return and n is the number of months.
Things to know
- Equity funds have historically returned 10–14% a year over long periods, but returns go up and down.
- Starting early matters more than investing a large amount.
- Increase your SIP each year when your salary goes up.