Mutual Fund Calculator: Systematic Investment Plan (SIP) is a fast-growing mutual funds investment tool as it helps an investor to generate a huge amount over the long-term through small investments. Mutual Funds SIPs help an investor to become rich even though he or she doesn't have a lump sum amount for investment at one shot. This Mutual fund investment in SIP mode is popular among the professionals who are in the early phase of career. For example, if an investor who has worked for three-four years and now he is around 30 years of age, then he can start investing for the long-term, say for 30 years or so. 

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Interestingly, at this age, a professional has to invest and save income tax as well. For such investors, a mutual fund SIP in Equity Linked Saving Scheme (ELSS) will not only help get exposure in equities but also save income tax on an annual investment of up to Rs 1.5 lakh.

Speaking on the ELSS Mutual Funds SIP; Kartik Jhaveri, Director — Wealth Management at Transcend Consultants said, "ELSS Mutual Funds SIP for long-term is a good investment tool as it will help an investor to get income tax benefit under Section 80C for up to Rs 1.5 lakh per annum. Apart from this, it will give equity exposure to the investor that gives at least 12 per cent if the time-horizon is around 10-15 years. However, if the time-horizon is up to 25-30 years, one can expect to get at least 15 per cent returns."

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Let's assume that an investor at the age of 30 wants to save income tax by investing in equity mutual funds. In that case, the investor starts ELSS Mutual Fund SIP of Rs 12,500 per month to claim maximum Rs 1.5 lakh income tax benefit in one financial year. In that case, if the investor continues doing this for 30 years, then his maturity amount will be Rs 8,76,22,758 where the net investment will be Rs 45 lakh and the net interest gained will be around Rs 8,31,22,758.

However, if we go by the experts' view, one should not be investing for income tax benefit only. It's better to gain more and pay income tax, especially when someone is investing in ELSS Mutual Funds.

Advising mutual fund SIP investors to step-up one's monthly SIP by 10 per cent per annum, SEBI registered tax and investment expert Jitendra Solanki said that such a step-up idea would help an investor grow maturity amount by around 50 per cent!

As per the mutual fund calculator, a Rs 12,500 per month ELSS mutual fund SIP with Rs 10 per cent step up annual rate would generate Rs 12,02,43,781 maturity amount where one's net investment will be Rs 1,10,25,000 and the net interest earned during the investment period will be Rs 10,92,18,781.

So, if we go by the tax and investment experts' view, one's Rs 12,500 per month ELSS Mutual Fund SIP will help him generate Rs 12.02 crore fund in 30 years of disciplined investment.