New Delhi, Aug. 20 -- For most retail mutual fund investors in India, a Systematic Investment Plan (SIP) often serves as the entry point to long-term wealth creation. Starting a SIP automates the entire process of savings, brings in financial discipline and takes away the stress of trying to time equity markets. But, then the question is how to estimate the right amount to set aside in a SIP? Beginner investors often rely on basic online SIP tools to estimate future returns, plugging in a simple monthly contribution along with an assumed rate of growth.

While basic projections work well to give estimations of the general power of compounding, experienced investors understand that real-world financial planning involves more variables. Ove...