A Systematic Investment Plan (SIP) is an investment method offered by mutual funds where investors can invest a fixed amount regularly (typically monthly) instead of making a lump-sum investment. This approach allows investors to benefit from rupee-cost averaging and the power of compounding over time.

The SIP calculator uses a compound interest formula to estimate the future value of your investments. It takes into account your monthly investment amount, investment duration, and expected annual returns to calculate the total investment, estimated returns, and total value at the end of the investment period.

Expected returns vary based on the type of mutual fund and market conditions. Typically, equity funds may deliver 12-15% returns over the long term, while debt funds might offer 7-9%. Hybrid funds usually fall somewhere in between. However, these are historical averages and actual returns may vary. It's advisable to use conservative estimates for financial planning.

The amount you should invest in SIP depends on your financial goals, time horizon, and current financial situation. Start with an amount you're comfortable with, even if it's small. As your income increases, you can consider increasing your SIP amount through top-up facilities offered by mutual funds. The key is consistency and discipline in investing.

No, the returns calculated by the SIP calculator are estimates based on the expected rate of return you input. Actual returns from mutual funds are subject to market risks and may vary from the projected figures. Past performance is not indicative of future results. The calculator provides a projection to help with financial planning, but actual results may differ.