Question 1

How does a SIP calculator estimate returns?

Accepted Answer

It compounds every monthly investment separately using the expected monthly rate and then adds the future value of all installments.

Question 2

What is annual step-up in SIP?

Accepted Answer

Annual step-up means increasing your SIP amount every year, usually to match salary growth or inflation. Even a small step-up can significantly increase the final corpus.

Question 3

Are SIP returns guaranteed?

Accepted Answer

No. SIP returns from mutual funds are market-linked. This calculator uses an expected annual return only for planning and comparison.

Question 4

Should I use SIP or lumpsum investing?

Accepted Answer

SIP works well for regular income and disciplined investing, while lumpsum works when you already have surplus capital and can tolerate market timing risk.