Financial & Mutual Fund Disclaimer
Important statutory disclosures, taxation details under current Indian tax law, and mathematical limitations of simulated financial projections.
1. Statutory Mutual Fund Risk Warning
"Mutual Fund investments are subject to market risks, read all scheme related documents carefully."
Past performance of any mutual fund scheme, benchmark index (such as Nifty 50 or S&P BSE Sensex), or asset class is not indicative of future results. Mutual funds do not offer guaranteed returns or guaranteed capital protection. The Net Asset Value (NAV) of schemes may rise or fall depending upon the forces and factors affecting the securities and debt markets.
2. Nature of Mathematical Simulations
The outputs generated by SIPCalculator.app are mathematical simulations based on a constant assumed annual growth rate (such as 12% p.a.).
In real market conditions, mutual fund returns do not compound in a straight, linear line. Returns are volatile and exhibit:
- Sequence of Returns Risk: Market crashes occurring near the end of your investment horizon can drastically impact your final corpus.
- Drawdowns & Sideways Markets: Equity indices may remain flat or negative for multi-year periods before experiencing sharp upward rallies.
- Tracking Errors & Portfolio Divergence: Active funds may underperform their benchmark index, while passive index funds experience small tracking errors.
3. Indian Capital Gains Taxation Notice (Income-tax Act, 2025)
The calculated maturity values on SIPCalculator.app represent pre-tax wealth projections. Redemptions from mutual funds in India are subject to capital gains tax as codified under the Income-tax Act, 2025 / Finance (No. 2) Act, 2024:
- Long-Term Capital Gains (LTCG): For holding periods exceeding 12 months, LTCG is taxed at 12.5% on aggregate gains exceeding ₹1.25 Lakhs per financial year.
- Short-Term Capital Gains (STCG): For holding periods of 12 months or less, STCG is taxed at 20%.
- For investments made on or after April 1, 2023, capital gains are taxed at your applicable individual income tax slab rate, irrespective of the holding duration (indexation benefits removed).
Additionally, Securities Transaction Tax (STT) of 0.001% applies to equity mutual fund redemptions, and a 0.005% stamp duty applies to mutual fund unit purchases. Investors should consult a Chartered Accountant (CA) or tax professional for individual tax planning.
4. Non-Advisory Status
SIPCalculator.app is an independent educational technology platform. We do not distribute mutual fund schemes, accept investment deposits, manage portfolios, or recommend specific asset management companies (AMCs) or schemes.
The display of company names (such as Groww, Zerodha, or HDFC Mutual Fund) is strictly for mathematical comparison and editorial clarity, and does not imply endorsement, affiliation, or sponsorship.