What Is SIP?

SIP (Systematic Investment Plan) is a smart way to invest in mutual funds.

You invest a fixed amount every month, and the money grows over time through compounding.

---

Why SIP Is Popular

Low monthly investment

High long-term returns

Good for beginners

No need for market timing

---

How SIP Works

You invest monthly → mutual fund buys units → your money compounds.

---

SIP Calculator Formula

Total investment and returns come from:

Monthly contribution

Rate of return

Investment duration

Compounding effects

But calculating manually is complex.

So use:

👉 Free SIP Calculator (https://webtoolspace.org)

category(https://webtoolspace.org/finance-calculators)

tools page(https://webtoolspace.org/online-tools)

---

Example

SIP: ₹2,000/month

Duration: 10 years

Estimated return: 12%

Future value ≈ ₹4.6 lakh

---

Benefits of SIP

Builds financial discipline

Power of compounding

Rupee cost averaging

Minimal risk

other blog post(https://webtoolspace.org/why-word-counters-are-important-benefits-uses-and-free-tool).