SIP ₹15,000/Month for 12 Years: Real Returns

What You Invest vs What You Get

Over 12 years you contribute ₹21.60 L from your pocket (₹15,000 × 144 months). At a 12% CAGR that becomes ₹48.34 L, so compounding adds ₹26.74 L on top of what you put in. The longer you stay invested, the larger this gains-to-contribution ratio becomes.

The Number Apps Don't Show: Real Value

₹48.34 L in 12 years is not ₹48.34 L of today's purchasing power. After 6% average inflation, it buys what about ₹24.02 L buys today. That's still real growth: your money grows faster than prices, but the honest figure is the inflation-adjusted one, not the headline number.

Tax on Your Gains (LTCG)

Equity mutual fund units held over 12 months qualify for Long-Term Capital Gains tax: 12.5% on gains above the ₹1.25 lakh annual exemption (Income Tax Act 2025). On ₹26.74 L of gains, a one-shot redemption implies roughly ₹3.31 L in LTCG tax, leaving about ₹45.02 L. Redeeming in tranches across financial years lets you use the ₹1.25 lakh exemption each year and can reduce this materially.

How to Improve This Outcome

₹15,000/month for 12 years. A SIP of this size works best when each part has a job: retirement, a child's education, or another dated goal. Review the target once a year, and consider raising the contribution when a salary increase leaves enough surplus after expenses and emergency savings.

• Step up the SIP. Raising ₹15,000 by 10% every year as your income grows beats a flat amount by a wide margin over 12 years.
• Stay the full tenure. The biggest compounding happens in the later years: stopping early forfeits most of the gains.
• Keep costs low. A direct-plan Nifty 50 index fund (0.1–0.2% expense ratio) preserves more of the 12% than a high-cost regular plan.
• Redeem in tranches. Spreading withdrawals across financial years uses the ₹1.25 lakh LTCG exemption repeatedly.