If you invest रू 5,000 every month for 20 years in a mutual fund returning 12% annually, you end up with रू 49.9 lakh — from just रू 12 lakh invested. That is the power of SIP compounding. This guide shows you exactly how to calculate it for Nepal.
SIP Calculator
See how your monthly investment grows — adjust amount, return rate, and years instantly
Try this free toolWhat is SIP and why does it work for Nepal?
SIP (Systematic Investment Plan) means investing a fixed amount in a mutual fund every month on the same date. The fund automatically deducts from your bank account.
It works because of two principles working together:
Rupee cost averaging: When NEPSE falls and NAV drops, your fixed SIP buys more units. When markets rise, it buys fewer. Over years, your average cost per unit is lower than if you had invested a lump sum at the wrong time.
Compounding: Your returns generate their own returns. The longer you stay invested, the faster your wealth accelerates.
SIP growth table for Nepal (12% assumed annual return)
| Monthly SIP | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| रू 1,000 | रू 82,486 | रू 2,32,339 | रू 5,00,456 | रू 9,99,148 |
| रू 3,000 | रू 2,47,458 | रू 6,97,017 | रू 15,01,368 | रू 29,97,444 |
| रू 5,000 | रू 4,12,430 | रू 11,61,695 | रू 25,02,280 | रू 49,95,740 |
| रू 10,000 | रू 8,24,860 | रू 23,23,391 | रू 50,04,558 | रू 99,91,479 |
Projections assume consistent 12% annual return. Actual returns vary.
SIP vs Fixed Deposit — which is better in Nepal?
| Factor | SIP (Equity Fund) | Fixed Deposit |
|---|---|---|
| Expected return | 10–15% p.a. (variable) | 7–9% p.a. (fixed) |
| Risk | Market risk | Very low |
| Best for | Goals 5+ years away | Goals under 3 years |
| Liquidity | Redeem anytime (open funds) | Locked for term |
| Inflation beating | Yes, historically | Barely |
Bottom line: For long-term goals (retirement, children's education, house down payment), SIP has historically delivered better returns than FD. For short-term needs, FD is safer.
How to start SIP in Nepal — step by step
- Open a DMAT account at your bank (takes 1–2 days)
- Complete KYC at a SEBON-registered fund management company
- Choose a fund: equity fund for growth, balanced fund for moderate risk
- Set your monthly amount (minimum रू 500 at most funds)
- Link your bank account for auto-debit
- Track via MeroShare (meroshare.com.np)