The RealValue SIP Engine is a powerful tool for investment planning. Here are 8 practical use cases demonstrating how to leverage it for different financial goals.

1. Retirement Planning (Target by Time)

Scenario: You’re 35 years old, want to plan for retirement at 60 (25 years away)

Setup:

  • Target Mode: Time
  • Time Period: 25 years
  • Current Investment: ₹10 lakhs (existing mutual fund portfolio)
  • Monthly Investment: ₹25,000 (increasing 10% yearly with salary hikes)
  • Expected CAGR: 12% (equity mutual funds)
  • Yearly Hike: 10%
  • Inflation: 6%
  • Tax Rate: 15%

What You’ll Learn:

  • How much corpus you’ll accumulate in 25 years
  • Real value (purchasing power) of that corpus
  • After-tax real value for accurate planning
  • Monthly breakdown of investments and growth

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2. Child’s Education Goal (Target by Money)

Scenario: Need ₹1 crore (today’s value) for your child’s higher education

Setup:

  • Target Mode: Money
  • Target Amount: ₹1 crore
  • Current Investment: ₹5 lakhs (existing education fund)
  • Monthly Investment: ₹30,000 (with 8% annual increment)
  • Expected CAGR: 12%
  • Yearly Hike: 8%
  • Inflation: 6%
  • Tax Rate: 15%

What You’ll Learn:

  • How many years/months to reach your goal
  • Whether your current SIP amount is sufficient
  • Exact timeline for goal achievement
  • Inflation-adjusted real value throughout the journey

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3. Down Payment for House (Target by Both)

Scenario: Need ₹50 lakhs in 5 years for house down payment

Setup:

  • Target Mode: Both
  • Time Period: 5 years
  • Target Amount: ₹50 lakhs
  • Current Investment: ₹2 lakhs (current savings)
  • Expected CAGR: 10% (debt+equity hybrid)
  • Yearly Hike: 10%
  • Inflation: 6%
  • Tax Rate: 30%

What You’ll Learn:

  • Required starting monthly SIP amount
  • How the SIP will increase each year
  • Whether the goal is achievable in the given timeframe
  • If target can’t be met, adjust time period or target amount

📊 Check This Plan

4. Early Retirement (Aggressive Savings)

Scenario: 30-year-old aiming for financial independence at 45 (15 years)

Setup:

  • Target Mode: Time
  • Time Period: 15 years
  • Current Investment: ₹20 lakhs
  • Monthly Investment: ₹1 lakh (aggressive savings)
  • Expected CAGR: 13%
  • Yearly Hike: 12%
  • Inflation: 6%
  • Tax Rate: 15%

What You’ll Learn:

  • Corpus size for early retirement
  • Impact of high savings rate and step-ups
  • Real value to ensure lifestyle maintenance
  • Whether the corpus is sufficient for retirement

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5. Wealth Creation with Zero SIP (Existing Investment Growth)

Scenario: You have a lump sum but can’t do SIP, want to see growth

Setup:

  • Target Mode: Time
  • Time Period: 20 years
  • Current Investment: ₹50 lakhs (inheritance or bonus)
  • Monthly Investment: ₹0 (no additional SIP)
  • Expected CAGR: 16%
  • Yearly Hike: 0%
  • Inflation: 6%
  • Tax Rate: 15%

What You’ll Learn:

  • Power of compounding on lump sum
  • How existing investment grows over time
  • Real vs nominal value difference
  • Whether lump sum alone is sufficient for your goal

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6. Career Break Planning (Money Target with No Current Investment)

Scenario: Planning a career break, need to know how long to save first

Setup:

  • Target Mode: Money
  • Target Amount: ₹30 lakhs (for 2-year break)
  • Current Investment: ₹0 (starting fresh)
  • Monthly Investment: ₹40,000
  • Expected CAGR: 11%
  • Yearly Hike: 8%
  • Inflation: 5%
  • Tax Rate: 15%

What You’ll Learn:

  • Years needed to accumulate the corpus
  • How to plan the career break timeline
  • Real value to ensure purchasing power
  • Impact of SIP step-ups on goal achievement

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7. Comparing Investment Strategies

Scenario: Compare flat SIP vs step-up SIP

Run the tool twice:

  • Target Mode: Time
  • Time Period: 20 years

Strategy A: Flat SIP

  • Monthly Investment: ₹25,000
  • Yearly Hike: 0%

📊 Check Strategy A (Flat SIP)

Strategy B: Step-up SIP

  • Monthly Investment: ₹25,000
  • Yearly Hike: 10%

📊 Check Strategy B (Step-up SIP)

What You’ll Learn:

  • Which strategy builds more wealth
  • Behavioral ease vs mathematical optimization
  • Impact of salary increases on wealth building

8. Opportunity Cost of Spending (Smart Purchase Decisions)

Scenario: Choosing between a ₹25,000 flagship phone vs ₹9,000 budget phone

The Choice:

  • Option A: Buy ₹25,000 phone → No investment
  • Option B: Buy ₹9,000 phone → Invest ₹16,000 difference

Setup:

  • Target Mode: Time
  • Time Period: 38 years
  • Current Investment: ₹16,000 (the saved amount)
  • Monthly Investment: ₹0 (one-time decision)
  • Expected CAGR: 24% (NASDAQ 100 historical returns in INR)
  • Yearly Hike: 0%
  • Inflation: 6%
  • Tax Rate: 15%

What You’ll Learn:

  • True cost of lifestyle inflation over decades
  • How one smart decision compounds into significant wealth
  • Real purchasing power of that ₹16,000 in 30 years
  • Why small sacrifices today create outsized future gains

The Lesson: That extra ₹16,000 could grow to substantial wealth over 38 years. Every purchase has an opportunity cost - the potential investment returns you’re giving up.

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Ready to Plan Your Wealth Journey?

Head over to the RealValue SIP Engine and start planning your financial goals today. Each use case above is just a click away!