V4M

Investment planning guide

SIP amount needed for a target

Work backwards from a target corpus to a monthly contribution, then test how time and return assumptions change the result.

Estimate SIP returns

A target-based SIP plan is an illustration, not a promise. Use a conservative return assumption, review the plan as the target changes and increase contributions as income grows.

How to use this guide

  1. 1Inflate the goal and set a realistic date.
  2. 2Test conservative, base and optimistic return assumptions.
  3. 3Automate the SIP, add annual step-ups and review the gap each year.

Start with the target date

Time is one of the most important inputs: a longer horizon can reduce the monthly contribution needed for the same target. Set a date and identify whether the goal is flexible or fixed.

Plan for inflation

A future target often needs to be larger than today’s cost, especially for education, housing and retirement goals. Inflate the current cost before calculating the monthly contribution.

Use a range of assumptions

Test more than one return assumption and avoid treating a past return as a guaranteed future result. A conservative scenario helps reveal whether the target is robust.

Choose risk for the horizon

Equity-oriented investments can fluctuate significantly and may be unsuitable for a near-term goal. As the target date approaches, consider how and when to reduce risk.

Add a step-up plan

A yearly increase in contributions can make the starting SIP more manageable when income is expected to grow. Record the step-up amount and review it with your budget.

Review every year

Increase the SIP when possible and rebalance the goal if the target, timeline or risk capacity changes. Compare the projected corpus with the amount actually invested, not just the original illustration.

Common questions

What to check before deciding

Can a SIP calculator guarantee the target?

No. It illustrates a contribution using an assumed return. Market returns vary, so use a range and build in a margin for error.

Should I include inflation in the target?

Usually yes when the goal is several years away. Estimate what the same goal may cost in the future before calculating the SIP.

What if the required SIP is too high?

Extend the timeline, increase contributions gradually, add a step-up plan, adjust the target or use a combination of existing savings and monthly investing.

Shortlist

Products worth comparing

Parag Parikh Flexi Cap

PPFAS Mutual Fund

High returns

19.4%

5-yr annualised

4.7(9,820)Rated 4.7 out of 5 from 9820 reviews

Flexible across large, mid & global stocks.

5-yr returns
19.4% p.a.
Expense ratio
0.63% (direct)
Risk
Very high
Min SIP
₹1,000 / mo
  • Excellent risk-adjusted returns
  • Global diversification
  • Equity risk — best for 5+ year horizon
Apply now

UTI Nifty 50 Index Fund

UTI Mutual Fund

Low fee

0.17%

expense ratio

4.5(7,410)Rated 4.5 out of 5 from 7410 reviews

Low-cost index fund tracking the Nifty 50.

5-yr returns
16.8% p.a.
Expense ratio
0.17% (direct)
Risk
High
Min SIP
₹500 / mo
  • Rock-bottom fees
  • Simple, transparent strategy
  • Returns mirror the index — no outperformance
Apply now

Nippon India Small Cap

Nippon India MF

28.1%

5-yr annualised

4.4(6,650)Rated 4.4 out of 5 from 6650 reviews

High-growth small-cap equity fund.

5-yr returns
28.1% p.a.
Expense ratio
0.68% (direct)
Risk
Very high
Min SIP
₹500 / mo
  • Very high long-term return potential
  • High volatility
  • Not for short horizons
Apply now