Duration is fixed at 5 years. Adjust your monthly investment and expected return rate to see your corpus.
Investment Details · 5 Year Plan
Fixed Duration
5 Years
60 monthly instalments
Total Corpus After 5 Years
₹0
at maturity
SIP for 5 Years — Common Questions
Is 5 years enough for SIP to show good returns?+
Five years is generally considered a minimum for equity mutual fund SIPs to deliver meaningful returns. Over 5 years, the power of compounding starts to show, and rupee cost averaging smooths out short-term market volatility. Historically, diversified equity funds have delivered 10–14% CAGR over 5-year periods in India. However, returns can vary significantly based on market conditions during your investment period.
How much will ₹5,000 SIP grow in 5 years?+
At 12% annual return, a ₹5,000/month SIP for 5 years gives a total corpus of approximately ₹4.12 lakhs. You invest ₹3 lakhs total (₹5,000 × 60 months), and the remaining ₹1.12 lakhs is pure returns. At a higher 15% return, the corpus grows to approximately ₹4.35 lakhs. The difference between rates is smaller at 5 years — compounding truly supercharges at 10+ year horizons.
Which mutual funds are best for a 5-year SIP?+
For a 5-year horizon, large-cap or flexi-cap mutual funds are generally recommended, as they offer reasonable growth with lower volatility than mid/small-cap funds. ELSS (tax-saving) funds are also excellent for 5-year SIPs as they have a 3-year lock-in and provide Section 80C deductions. Mid-cap funds can be considered if you have some risk tolerance and are investing for the full 5 years without needing interim liquidity.
Can I withdraw my SIP investment before 5 years?+
For most open-ended mutual funds, yes — you can redeem at any time. However, ELSS funds have a mandatory 3-year lock-in per instalment. Withdrawing equity fund units before 1 year attracts a 15% Short-Term Capital Gains (STCG) tax. After 1 year, Long-Term Capital Gains (LTCG) above ₹1 lakh are taxed at 10%. Partial or full redemption before the planned 5 years also disrupts the compounding process.
How does a Step-Up SIP improve 5-year returns?+
A Step-Up SIP increases your monthly investment by a fixed percentage annually. Starting at ₹10,000/month with 10% annual step-up: Year 1 = ₹10,000/mo, Year 2 = ₹11,000/mo, Year 3 = ₹12,100/mo, and so on. Over 5 years at 12% return, this step-up strategy yields approximately ₹9.5 lakhs vs ₹8.2 lakhs without step-up — a 16% improvement in corpus from just incrementally increasing contributions as your income grows.