New-SIP Interest Rate

The SIP interest rate refers to the expected rate of return on investments made through a Systematic Investment Plan (SIP). SIPs are a popular investment option where individuals invest a fixed amount at regular intervals. The interest rate or return on investment is important in determining the growth of your portfolio over time. Understanding the SIP interest rate helps investors gauge how much they can expect their investments to grow, making it an essential factor in financial planning.

SIP Insurance Plan Benefits

Start SIP with as low as ₹1000

No hidden charges

Save upto ₹46,800 in Taxunder section 80C^{^}

Zero LTCG Tax^¶

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Insurance Companies
Mutual Funds

Fund Name	5 Years	7 Years	10 Years
	Returns
Virtue II PNB Metlife Rating	20.71%	15.98%	14.2% View Plan
Large Cap Equity Fund Tata AIA Rating	18.66%	16.14%	13.38% View Plan
Diversified Equity Fund HDFC Standard Rating	15.34%	12.75%	12.73% View Plan
Grow Money Plus Fund Bharti AXA Rating	15.75%	13.48%	12.67% View Plan
Pure Stock Fund Bajaj Allianz Rating	17.66%	13.04%	12.3% View Plan
Pure Equity Birla Sun Life Rating	15.88%	11.61%	12% View Plan
Growth Super Fund Max Life Rating	14.75%	12.67%	11.26% View Plan
Equity Fund SBI Rating	13.7%	11.58%	10.45% View Plan
Bluechip Fund ICICI Prudential Rating	13.76%	10.96%	9.84% View Plan
Growth Plus Fund Canara HSBC Oriental Bank Rating	11.35%	9.08%	8.98% View Plan

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Last updated: 19 Nov 2024

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Fund Name	3 Years	5 Years	10 Years
	Returns
Active Fund QUANT	24.92%	31.48%	21.87%
Flexi Cap Fund PARAG PARIKH	20.69%	26.41%	19.28%
Large and Mid-Cap Fund EDELWEISS	22.34%	24.29%	17.94%
Equity Opportunities Fund KOTAK	24.64%	25.01%	19.45%
Large and Midcap Fund MIRAE ASSET	19.74%	24.32%	22.50%
Flexi Cap Fund PGIM INDIA	14.75%	23.39%	-
Flexi Cap Fund DSP	18.41%	22.33%	16.91%
Emerging Equities Fund CANARA ROBECO	20.05%	21.80%	15.92%
Focused fund SUNDARAM	18.27%	18.22%	16.55%

Updated as of Dec 2024

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What is SIP?

Systematic Investment Plan (SIP) is a popular investment strategy where you invest a fixed amount of money at regular intervals, typically monthly or quarterly, in a mutual fund or market-linked fund. It's like setting up a recurring deposit for your investments. SIPs are a great way to start investing, even with small amounts, as they help you build wealth gradually over time. They also benefit from rupee cost averaging, which means you buy more units when the market is low and fewer units when the market is high, potentially reducing your overall average cost of investment.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

Years

Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

16.4%

High Growth Fund

13.33%

Opportunities Fund

13.2%

Accelerator Mid-Cap Fund II

How SIP Interest Rates Work?

SIP return rates are linked to the performance of the underlying fund scheme. This means your returns can vary depending on how the market performs.

Here's how it works:

Investment: When you invest in a SIP, your money is invested in market-linked funds.
Fund Performance: The fund manager invests your money in various assets like stocks, bonds, or a combination of both.
Returns: The performance of these assets determines the returns of the fund. If the assets perform well, the fund's value increases, and your investment grows. If they perform poorly, the value decreases, and your investment may shrink.
Rupee Cost Averaging: One of the benefits of SIPs is rupee cost averaging. This means you buy more units when the fund's price is low and fewer units when the price is high, potentially reducing your average cost over time.

Factors Affecting SIP Interest Rates

SIPs do not have a fixed interest rate. Unlike traditional bank deposits, SIP return rate are not guaranteed and can vary depending on the fund's performance You can check the best sip to invest on Policybazaar also. The factors that influence SIP return rate are:

Market Performance: The overall performance of the stock market or bond market significantly impacts your returns.
Fund Selection: Choosing a well-performing fund with a good track record is important.
Investment Horizon: The longer you invest, the more time your money has to grow through compounding.
Fund Manager's Skill: The skill and experience of the fund manager can influence the fund's performance.

How to Calculate Returns on Your SIP Investments?

Calculating returns on your SIP (Systematic Investment Plan) investments is straightforward. The SIP calculator can simplify the calculations. An SIP calculator is a tool designed to help you estimate the future value of your investments in a Systematic Investment Plan (SIP). By inputting key information such as the monthly investment amount, duration of investment, and expected rate of return, the SIP calculator automatically computes the estimated returns and the final corpus you could accumulate by the end of the investment period.

Conclusion

The SIP interest rate plays an important role in shaping the outcome of your investments. While SIPs use the power of compounding and reduce risk through rupee cost averaging, the returns largely depend on market performance and the interest rate assumed. Monitoring and understanding the projected SIP interest rate is crucial to achieving long-term financial goals, allowing investors to adjust their investment strategies for better growth and returns.

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FAQs

What is a SIP interest rate?

SIPs (Systematic Investment Plans) don't have a fixed interest rate like traditional bank deposits. The returns on a SIP are linked to the performance of the underlying mutual fund, which can vary depending on market conditions.
How are SIP return rates calculated?

SIP returns are calculated based on the performance of the market-linked fund in which you've invested. Factors like market fluctuations, fund manager's decisions, and the overall economic environment influence the returns.
Can I guarantee a specific return on my SIP?

No, you cannot guarantee a specific return on a SIP. The returns are subject to market risk, and past performance is not indicative of future results.
How do SIP returns compare to traditional investment options like bank fixed deposits?

SIPs offer higher potential returns than traditional fixed deposits, but they also come with higher risk. Fixed deposits have a guaranteed return, but the interest rates are usually lower than those offered by good-performing market-linked funds.