SIP Calculator
Plan your investment journey with our comprehensive SIP calculator
Investment Details
Tax Implications for SIP Investments
Short-Term Capital Gains (STCG)
- Applicable for equity funds held for less than 1 year
- Taxed at flat 15% rate + applicable surcharge & cess
- For debt funds held for less than 3 years, gains are added to income and taxed as per slab rate
- No indexation benefits available for STCG
Long-Term Capital Gains (LTCG)
- Applicable for equity funds held for more than 1 year
- 10% tax on gains exceeding ₹1 lakh in a financial year + applicable surcharge & cess
- For debt funds held for more than 3 years, 20% tax with indexation benefits
- ELSS (Equity Linked Savings Scheme) has a mandatory lock-in of 3 years but follows equity taxation
Disclaimer: Tax laws are subject to change. The information provided is as per the current tax regime.
Please consult a tax professional for specific advice related to your situation.
About Systematic Investment Plans (SIP)
What is a SIP?
A Systematic Investment Plan (SIP) is an investment strategy offered by mutual funds where investors can invest a fixed amount regularly at fixed intervals (typically monthly). It's similar to a recurring deposit but offers potentially higher returns associated with market-linked investments.
Benefits of SIP Investing
- Disciplined Saving: Makes investing a habit with automated deductions
- Rupee Cost Averaging: Reduces impact of market volatility by buying more units when prices are low and fewer when prices are high
- Power of Compounding: Early investments have more time to grow and generate returns on returns
- Small Investments: Start with as little as ₹500 per month
- No Timing the Market: Eliminates the need to time the market
Types of SIPs
- Regular SIP: Fixed amount invested at regular intervals
- Step-up SIP: Contribution amount increases periodically (typically annually) by a fixed percentage or amount
- Flexible SIP: Allows changing of investment amount based on your financial situation
- Perpetual SIP: No end date specified, continues until explicitly stopped
- Trigger SIP: Investments triggered based on market conditions or predefined events
SIP Investment Strategy Tips
- Start early to maximize the power of compounding
- Stay invested for long-term to ride out market volatility
- Opt for step-up SIPs as your income increases
- Diversify across different fund categories
- Regularly review and rebalance your portfolio