A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals, typically monthly. It builds wealth through disciplined investing and rupee cost averaging — buying more units when prices are low and fewer when prices are high, which smooths out market volatility over time.

The expected annual return rate is an assumption you provide, usually based on the historical performance of the mutual fund category (e.g. large-cap, mid-cap, index funds) you plan to invest in. Actual returns will vary depending on real market performance and are never guaranteed.

SIP suits investors who want to invest regularly from monthly income and reduce timing risk through rupee cost averaging. Lumpsum can generate higher returns if invested right before a market rally, but carries more timing risk. Many investors combine both approaches depending on when they have surplus cash.

No, this calculator estimates only the gross maturity value based on your monthly investment, tenure and expected annual return. It does not account for the fund's expense ratio, exit load, or taxes on capital gains, all of which will reduce your actual net returns.