Systematic Equity Plan (SEP) Calculator
Key Takeaway
A Systematic Equity Plan (SEP) is like SIP for individual stocks , automatically investing a fixed amount monthly into specific company shares, building concentrated positions without timing decisions.
SEP Calculator (Systematic Equity Plan)
Estimate wealth creation via monthly investments in stocks.
Total Future Value
₹27,86,573
What to do next
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Systematic Equity Plan (SEP) Compounding Formula
Calculates the compounded growth value of regular periodic investments in individual stock equities.
Worked Example: Investing ₹5,000 monthly in a stock returning 12% p.a. for 10 years
Systematic Equity Plans: Compounding wealth through stock SIPs
Aditi invested ₹5,000 monthly in a blue-chip stock returning 12% p.a. over 10 years. She preferred stock SIPs over mutual funds to avoid expense ratios.
Her total investment of ₹6 Lakhs grew to ₹11.6 Lakhs, earning compound interest gains of ₹5.6 Lakhs under her direct control.
Systematic Equity Plans (SEPs) allow investors to purchase fixed rupee amounts of individual stocks at regular intervals, averaging costs.
SEPs are ideal for disciplined investing in high-conviction stocks. Reinvest all dividends to maximize compounding benefits.
Frequently Asked Questions
What is a Systematic Equity Plan (SEP)?
An SEP is similar to a mutual fund SIP, but instead of buying fund units, you automatically invest a fixed amount of money every month directly into specific individual stocks.
What are the benefits of SEP over SIP?
SEPs allow you to build concentrated positions in high-conviction companies, completely avoid mutual fund expense ratios (TER), and give you direct ownership of voting rights and dividends.
Is SEP riskier than mutual fund SIPs?
Yes. Mutual funds offer instant diversification across 30-50 stocks. Buying individual stocks concentrates your risk, requiring rigorous fundamental research before committing to an SEP.
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