SIP for Car

A Systematic Investment Plan (SIP) is an easy way to save for your dream car. It allows you to invest small amounts regularly in mutual funds, helping you build a corpus over time without financial stress. SIPs offer the advantage of compounding, which helps reduce the need for loans or EMIs. It is a smart and disciplined approach to achieving your goal.

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Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹11,852

NAV

168.87

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.71 20.36 18.27 %

Instant tax receipt
AUM (Cr)

₹3,206

NAV

69.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.42 16.6 15.31 %

Instant tax receipt
AUM (Cr)

₹2,581

NAV

70.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13 15.35 15.28 %

Instant tax receipt
AUM (Cr)

₹34,475

NAV

78.23

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.5 15.71 14.74 %

Instant tax receipt
AUM (Cr)

₹5,492

NAV

81.4

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.63 14.15 14.43 %

Instant tax receipt
AUM (Cr)

₹422

NAV

66.39

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.02 12.99 14.22 %

Instant tax receipt
AUM (Cr)

₹4,838

NAV

67.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.29 14.17 13.98 %

Instant tax receipt
AUM (Cr)

₹206

NAV

47.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.82 13.8 13.65 %

Instant tax receipt
AUM (Cr)

₹136

NAV

54.13

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.88 13.38 13.44 %

Instant tax receipt
AUM (Cr)

₹3,452

NAV

40.01

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.79 12.15 13.34 %

Instant tax receipt
AUM (Cr)

₹3,206

NAV

69.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.42 16.6 15.31 %

AUM (Cr)

₹2,581

NAV

70.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13 15.35 15.28 %

AUM (Cr)

₹422

NAV

66.39

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.02 12.99 14.22 %

AUM (Cr)

₹4,838

NAV

67.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.29 14.17 13.98 %

AUM (Cr)

₹206

NAV

47.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.82 13.8 13.65 %

AUM (Cr)

₹136

NAV

54.13

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.88 13.38 13.44 %

AUM (Cr)

₹3,452

NAV

40.01

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.79 12.15 13.34 %

AUM (Cr)

₹7,369

NAV

148.42

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.55 13.47 13.19 %

AUM (Cr)

₹3,154

NAV

67.61

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.4 13.12 12.96 %

AUM (Cr)

₹77,698

NAV

189.12

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.77 10.62 11.42 %

AUM (Cr)

₹11,852

NAV

168.87

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.71 20.36 18.27 %

AUM (Cr)

₹34,475

NAV

78.23

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.5 15.71 14.74 %

AUM (Cr)

₹5,492

NAV

81.4

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.63 14.15 14.43 %

AUM (Cr)

₹10,579

NAV

64.82

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21 21.17 22 %

AUM (Cr)

₹13,736

NAV

120.02

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.25 22.01 19.11 %

AUM (Cr)

₹1,042

NAV

72.72

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.91 14.39 14.97 %

AUM (Cr)

₹13,101

NAV

68.72

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.34 13.27 13.24 %

AUM (Cr)

₹1,050

NAV

53.22

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.62 12.69 12.69 %

AUM (Cr)

₹3,457

NAV

58.77

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.3 12.8 12.6 %

AUM (Cr)

₹498

NAV

55.78

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.3 11.5 11.36 %

AUM (Cr)

₹224

NAV

27.09

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.02 9.05 10.14 %

AUM (Cr)

₹847

NAV

41.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.53 6.84 7.23 %

AUM (Cr)

₹532

NAV

38.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.12 6.76 6.93 %

AUM (Cr)

₹131

NAV

30.32

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.85 6.61 6.84 %

AUM (Cr)

₹72

NAV

41.67

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.37 6.45 6.78 %

AUM (Cr)

₹91

NAV

39.3

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.1 6.45 6.55 %

AUM (Cr)

₹166

NAV

47.21

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 4.52 5.93 6.54 %

AUM (Cr)

₹16,641

NAV

50.26

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.13 6.23 6.54 %

AUM (Cr)

₹1,080

NAV

47.04

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.53 6.3 6.51 %

AUM (Cr)

₹1,623

NAV

43.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.21 5.99 6.39 %

AUM (Cr)

₹896

NAV

101.09

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 14.83 15.99 15.5 %

AUM (Cr)

₹348

NAV

47.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.19 10.06 10.23 %

AUM (Cr)

₹4,753

NAV

38.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.15 9.05 9.89 %

AUM (Cr)

₹62

NAV

59.84

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.09 8.85 9.85 %

AUM (Cr)

₹438

NAV

101.65

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.99 8.94 9.77 %

AUM (Cr)

₹765

NAV

38.76

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.65 9.3 9.53 %

AUM (Cr)

₹20,171

NAV

70.89

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.48 8.7 9.52 %

AUM (Cr)

₹6,428

NAV

106.79

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8 8.94 9.4 %

AUM (Cr)

₹260

NAV

30.32

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 8.12 8.78 9.29 %

AUM (Cr)

₹1,682

NAV

42.96

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 9.18 9.27 9.24 %

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What is SIP for Car?

A SIP for a car is a planned approach to save money for your dream car. It involves investing a fixed amount regularly in mutual funds, helping your savings grow over time. This method ensures disciplined saving while taking advantage of market returns. A SIP for a car allows you to set a specific goal, invest within your budget, and avoid the burden of a car loan. It is a smart and efficient way to achieve your car-buying goal at your preferred timeline.

SIP Calculator

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
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
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Total Wealth ₹1.03 Cr
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
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
Equity Pension
12.44%
Equity Pension
Opportunities Fund
14.74%
Opportunities Fund
High Growth Fund
19.11%
High Growth Fund
Opportunities Fund
12.6%
Opportunities Fund
Multi Cap Fund
22%
Multi Cap Fund
Accelerator Mid-Cap Fund II
14.43%
Accelerator Mid-Cap Fund II
Multiplier
16.3%
Multiplier
Frontline Equity Fund
13.98%
Frontline Equity Fund
Virtue II
15.31%
Virtue II
Growth Plus Fund
10.52%
Growth Plus Fund
Blue-Chip Equity Fund
10.23%
Blue-Chip Equity Fund
Global Equity Growth Fund
16.13%
Global Equity Growth Fund
Growth Opportunities Plus Fund
14.97%
Growth Opportunities Plus Fund
Equity Top 250 Fund
11.36%
Equity Top 250 Fund
Future Apex Fund
13.44%
Future Apex Fund
Pension Dynamic Equity Fund
11.15%
Pension Dynamic Equity Fund
Accelerator Fund
13.65%
Accelerator Fund

How an SIP for Car Work?

The following steps are simple guide to understand how SIP can help you save for your car purchase in a systematic and efficient way:

  • Choose the Right SIP Plan: Pick a best SIP plan that fits your goal of buying a car based on how much time you have and the car's cost.

  • Decide Investment Amount: Choose how much money you can invest every month, depending on your budget and the amount you need for the car.

  • Pick a Mutual Fund: Choose a mutual fund that suits your risk level (low, medium, or high) to get good returns over time.

  • Start Investing Regularly: Begin investing a fixed amount each month through auto-debit or ECS, without missing any payment.

  • Monitor Your Investment: Keep an eye on your SIP’s performance regularly, making sure it’s on track to meet your car fund goal.

  • Withdraw and Buy Car: Once your SIP grows enough, withdraw the amount and use it for buying your car.

SIP Calculator to Estimate Amount for Car

A SIP calculator helps you estimate how much you need to invest monthly to save for a car. It considers your target amount, expected return rate, and investment period. 

Let us understand the application of the calculator for a car purchase by selecting the “I Know My Goal Amount” option in the SIP calculator:

  • Car Price Estimate: ₹15,00,000 for a good-range car in 2024.

  • Investment Duration: 5 years.

  • Expected Return: 15% annually.

The calculator will estimate the monthly contributions you need to make to cover the amount of ₹15,00,000 in 5 years.

  • SIP Calculator Results:

    • Total Investment: ₹10.3 lakhs

    • Monthly Investment Required: ₹17,200

    • Wealth Gained from SIP: ₹4.7 lakhs

Start An Sip Today Watch Your Money Grow Start An Sip Today Watch Your Money Grow

Key Points to Consider Before Investing in an SIP for Car

Following are the key points to keep in mind before starting a SIP for your car purchase:

  • Set a Clear Goal: Decide the total cost of the car and when you want to buy it. This will help plan your SIP amount.

  • Calculate Monthly Savings: Use a SIP calculator to find out how much you need to save every month to reach your goal.

  • Choose the Right Mutual Fund: Pick funds that are less risky, like hybrid or large-cap funds, for steady returns.

  • Match SIP Duration with Goal: Make sure the SIP tenure matches your car purchase timeline. For short-term goals (2-5 years), avoid high-risk funds.

  • Check Expected Returns: Look at the fund’s past returns to ensure it can help you reach your target.

  • Track Progress Regularly: Keep an eye on your SIP’s performance and adjust if needed to stay on track.

  • Ensure Liquidity: Choose a fund that lets you withdraw money easily when you are ready to buy the car.

  • Know Tax Rules: Understand if there are any taxes on the returns or charges for withdrawing your money early.

  • Keep an Emergency Fund: Always maintain a separate fund for emergencies so you don’t use your SIP savings.

  • Avoid Emotional Decisions: Do not worry about short-term market ups and downs. Stay focused on your goal.

Key Benefits of Investing in an SIP for Car

The key benefits of SIP investment are listed below:

  • Disciplined Investment: Regular SIP investments help build a corpus without the need for large lump-sum investments.

  • Compounding Power: The returns on your SIP grow exponentially over time.

  • Flexibility: SIP amounts and investment durations can be adjusted according to your financial situation.

  • Affordable Contributions: Start with small amounts, making it easier to save without financial strain.

  • Customizable Tenure: Set a SIP duration that aligns with your car-buying timeline.

Start Small & Build Your Wealth For A Brighter Tomorrow Start Small & Build Your Wealth For A Brighter Tomorrow

Conclusion

A SIP for a car helps you invest small amounts regularly in mutual funds, growing your money over time. With disciplined investing and the power of compounding, you can achieve your goal faster. Use a SIP calculator to estimate how much to invest monthly based on your car's cost and timeline. Start early, stay consistent, and enjoy driving your dream car without financial stress.

SIP Hub
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FAQs

  • What is a SIP for a Car?

    A SIP for a car is a systematic investment plan where you save monthly to buy a car in the future.
  • How does SIP for Car work?

    SIP for cars works by investing a fixed amount regularly in mutual funds to grow your savings over time.
  • Which mutual funds are best for SIP for Car?

    Hybrid or large-cap funds are best for SIP for cars as they offer stable returns for short to medium-term goals.
  • How much should I invest in SIP for Car?

    Use a SIP calculator to decide how much to invest based on your car's cost and the time you have to save.

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Invest ₹10K/Month & Get ₹1 Crore# Tax-Free*
*under 10(10D)

˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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