Investments
How SIP returns are calculated
A SIP projection applies an assumed monthly growth rate to recurring contributions; it is a mathematical illustration, not a promised return.
Monthly rate and periods
The annual return assumption is converted to a monthly rate and the number of SIPs becomes the number of periods. WealthAura uses an annuity-due convention, so a contribution is assumed to participate in that month's growth.
What the result includes
Review total invested separately from estimated gains. In actual funds, NAV movement, expense ratios, transaction timing and market conditions mean results will not match a smooth projection.
Long horizons
Compounding has more time to act over long periods, but that does not remove market risk. A longer horizon is not a guarantee of any particular outcome.
How to check a SIP projection
Multiply the monthly contribution by the number of months to find total invested. Then compare that with the projection. For ₹10,000 a month over 10 years, total invested is ₹12,00,000; at a 12% annual assumption, WealthAura's start-of-month method projects about ₹23.23 lakh. That difference is a projection, not a return you can rely on.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculatorFrequently asked questions
Does a SIP projection guarantee a return?
No. It uses the selected constant return assumption; market-linked investments can rise or fall.
Which calculator should I use with this guide?
Use the SIP calculator for a fixed monthly contribution and treat the output as an illustration.