SIP Calculator (Systematic Investment Plan) – Mutual Fund Returns
Forecast prospective wealth accumulation on mutual fund investments through monthly SIPs, annual Step-Up top-ups, and lump sum compounding. Evaluate real purchasing power after inflation and calculate Indian mutual fund capital gains taxes under Finance Act 2024.
Need Professional Mutual Fund Portfolio Advisory?
Our certified wealth advisors design goal-oriented portfolios across large cap, flexi cap, mid cap, and debt categories.
Indian Mutual Fund Taxation Guide (Post-Finance Act 2024 / FY 2026-27)
Long-Term Capital Gains (LTCG)
Units held for more than 12 months. Gains up to ₹1,25,000 per financial year are completely exempt. Aggregate gains above ₹1.25L are taxed at 12.5% (+ 4% cess). Indexation benefit has been eliminated.
Short-Term Capital Gains (STCG)
Units held for 12 months or less. Taxed at a flat rate of 20% (increased from 15% in Budget 2024) plus 4% health & education cess.
Debt & Liquid Mutual Funds
Investments in mutual funds with less than 35% domestic equity are taxed as short-term capital gains at your applicable income tax slab rates, irrespective of tenure.
Frequently Asked Questions (FAQ)
What is a Systematic Investment Plan (SIP) and how does compounding work?
A Systematic Investment Plan (SIP) allows you to invest a fixed sum periodically into a mutual fund scheme. SIP enforces financial discipline and leverages Rupee Cost Averaging—buying more units during market dips and fewer during highs. Over 10 to 20 years, compounding generates exponential terminal wealth.
What is a Step-Up (Top-Up) SIP and why is it recommended?
A Step-Up SIP automatically increases your monthly installment by a chosen percentage (e.g. 10% or 15%) once each year. As your annual salary or business income rises, increasing your SIP matches your higher savings capacity and substantially multiplies your final maturity corpus.
How are Equity Mutual Fund Capital Gains taxed under Finance Act 2024?
Under Section 112A, equity mutual funds held for over 12 months are subject to 12.5% LTCG tax on annual gains exceeding ₹1,25,000 (exempt up to ₹1.25L). Short-term gains for holding periods under 12 months are taxed at 20% under Section 111A.
Can I claim tax deduction under Section 80C on mutual fund SIPs?
Yes, if you invest in an ELSS (Equity Linked Savings Scheme) mutual fund. Under the Old Tax Regime, investments up to ₹1,50,000 qualify for deduction under Section 80C with a mandatory 3-year statutory lock-in.