New Delhi: In recent years, Systematic Investment Plans (SIPs) have become a popular way for individuals to invest in mutual funds. SIPs allow investors to contribute small, manageable amounts each month. SIPs compared to other investment options, often offer higher returns over the long term, helping investors accumulate a substantial corpus over time.
Did you know there are different types of SIPs? Choosing the right one for you can help avoid losses and make your investment more effective. Many people start investing without knowing this—so don’t make the same mistake. Take a look at the slides below to learn about the different Types of SIPs.
Regular SIP
A Regular SIP is a great option if saving money feels tough. Here, you invest a set amount on a fixed date each month. This steady approach helps you build a good amount over time. The best part? You can start with just Rs 500.
Flexible SIP
This SIP is perfect for people with irregular income, like freelancers, self-employed workers, or small business owners. You can invest more when you earn more and less when you earn less. It lets you adjust your investment amount based on how much you make.
Step-Up SIP
Step-Up SIP is ideal for salaried people whose income grows each year, or business owners with increasing profits. With this plan, you gradually raise your investment amount over time—say by 10 per cent every year. This helps you build a bigger fund in the long run and keeps up with rising costs. It’s especially helpful for big goals like buying a house, funding your kids’ education, or saving for retirement.
SIP with Insurance
If you want to save money and also protect your family, this SIP is a great choice. It combines investment with insurance benefits so you don’t have to pay a separate insurance premium. If the investor passes away during the SIP period, the nominee gets the insurance amount.
Trigger SIP
Trigger SIP is designed for investors who understand the stock market’s ups and downs and are comfortable taking some risks. You set rules ahead of time, like investing or withdrawing money when the market hits a certain level. It works like an alert, helping you buy or sell at the right moment. There are different trigger types, such as index-level, fixed-date, return-based, and profit-booking triggers.