Power of Compounding through Systematic Investment Plans (SIP)
Investing systematically each month harnesses the mathematical power of compounding and rupee cost averaging, shielding you from market timing risks.
Frequently Asked Questions (FAQs)
How does an SIP compounding formula work?
SIP compounding uses the future value annuity formula: M = P × ({[1 + i]^n – 1} / i) × (1 + i), where P is the monthly deposit, i is the monthly interest rate (r / 12), and n is the total number of months.
What is the ideal expected return from equity mutual funds in India?
Historically, diversified Indian equity mutual funds (large cap, flexi cap, mid cap) have delivered long-term returns between 12% to 15% per annum over 10+ year horizons.
