Illustration only. Equity returns are not guaranteed and do not arrive in a straight line. Tax: the post-tax line in the results treats this as an equity fund — units held over 12 months pay 12.5% LTCG on gains beyond ₹1.25L per financial year (units sold within 12 months, e.g. your most recent instalments, pay 20% STCG instead, so the true bill on a one-shot redemption is slightly higher than shown; spreading redemption across years uses the ₹1.25L exemption more than once and lowers it). Debt funds have no LTCG rate at all — their entire gain is taxed at your slab. Start a SIP →
What is CAGR and how is it different from average return?
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take your starting value to your ending value over the period, accounting for compounding. A simple average of yearly returns can be misleading -- a 50% gain followed by a 50% loss averages to 0%, but you'd actually be down 25%. CAGR reflects what actually happened to your money.Read more: The 1% Exit Load That’s Really Designed to Keep You From Ever Leaving
Is SIP better than a lump sum investment?
Neither is universally better -- a SIP (spreading investment across regular installments) reduces the risk of investing everything right before a downturn and suits regular income, while a lump sum captures more time in the market if invested when prices are relatively low. For most people investing from salary, SIP is the practical default; a lump sum windfall is often still better invested promptly rather than staggered indefinitely.Read more: Your SIP Has Been on Autopilot for 8 Years. That’s Not Discipline, That’s Neglect
How does compounding actually grow money over time?
Compounding means your returns start earning their own returns, not just your original investment. The effect is small in early years and accelerates sharply later -- which is why starting early matters more than almost any other single investing decision, even more than the exact return rate.Read more: F&O Trading: The Casino With a 93% House Edge
What's a realistic long-term return to assume for equity investments?
Long-term equity returns vary a great deal by market and period, and past performance never guarantees future results. Most long-term financial plans use a conservative, inflation-aware assumption rather than recent bull-market numbers -- this calculator lets you test your own assumption and see how sensitive the outcome is to it.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Estimates only, not financial advice. See our Disclaimer.
