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Choosing the Right Type of SIP

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Systematic Investment Plan (SIP) has gained immense popularity over the last decade. There are currently around 6.05 crore SIP accounts in India!


SIP is one of the best options for people who want to invest in mutual funds online in small amounts at regular intervals instead of lump sum amount at once. SIPs leverage rupee cost averaging and compounding principles to lower the market risk and generate good returns in long term.


There are different types of SIP options that you can consider:

  1. Regular SIP

This is the most basic and simplest of SIP. You can invest a predetermined amount in SIP every month, quarter, or six months. There are even daily, weekly and bi-monthly SIPs. The SIP amount remains fixed and equal. You just need to give a standing instruction to your bank to debit this amount from your savings account and credit it to the mutual fund house.

If you are investing in SIP for the first time, it is advisable to use the SIP goal calculator. It will give you an idea about how much you need to invest to earn returns as per your financial goal.


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