SIP Kiya kya? You would have heard of that popular line by many mutual fund houses to sell the best SIP options to you. But how do you know which SIP is right for you. Your needs, your goals, and your risk appetite are all unique from other investors, and and so is every SIP. Here’s how to find the one that could work best for you!
Facts:
- As of May 2025, mutual fund SIP accounts in India reached an all-time high of 8.56 crore
- According to Moneycontrol, these accounts brought in a staggering ₹27,269 crore in monthly inflows in June 2025
- These figures represent the growing trust of millions of Indians in Systematic Investment Plans (SIPs) as a dependable, disciplined, and rewarding way to build wealth over time.
But what are the benefits of an SIP?
SIPs offer a Shift in Mindset: From just Saving to valuable Investing. India has majorly been a ‘saving’ economy – but last few years have given us something to think of. There has been a noticeable shift — from saving in fixed deposits and recurring deposits to investing in mutual funds via SIPs. Why? Are SIPs better?
SIPs help fight inflation, offer potentially higher returns, and create a habit of disciplined investing. This shift is not just financial – it’s cultural. It signals growing financial literacy, a rise in digital platforms making investing easier, and a deeper understanding of the importance of long-term planning.
Let’s look at each type with simple, real-life examples:
- Regular SIP – Simple, Steady, and Popular.
A fixed amount is invested on a predetermined date each month, and this amount remains constant unless the investor chooses to modify it.
Example: A salaried employee invests ₹3000 on the 5th of every month in a mutual fund. This continues for the next 10 years.
Why it’s good:
- Easy to plan and budget
- Builds a disciplined savings habit
- Great for beginners
- Top-Up SIP (Step-Up SIP) – Let Your Investment Grow with You
You begin your SIP with a fixed monthly amount, and over time- typically once every year – you increase that amount by a fixed value or percentage. This allows your investments to grow in line with your rising income.
Example: Priya starts a SIP of ₹2000/month. She chooses a top-up of ₹500 annually.
So:
- Year 1: ₹2000/month
- Year 2: ₹2500/month
- Year 3: ₹3000/month
And so on…
Why it’s good:
- Helps you save more as your income increases
- Beats inflation over the long term
- Ideal for long-term goals like a house or retirement
- Flexible SIP – You Decide How Much to Invest Each Month
A Flexible SIP gives you the freedom to adjust your investment amount every month based on your financial situation. Whether your income varies, your expenses unexpectedly rise, or you spot a good opportunity in the market, this option allows you to increase, decrease, or even skip a month’s contribution without stopping your SIP completely. It’s an ideal choice for people with irregular or seasonal income, such as small business owners, freelancers, or those who prefer more control over their monthly budget.
Example: A Freelance Graphic Designer whose clients and payments vary each month. She chooses Flexible SIP to invest ₹5,000 when multiple projects are running and drops it to ₹1,500 as per her income.
Why it’s good:
- Gives control to the investor
- Good for people with irregular income
- Trigger SIP – Designed to Execute on Pre-Set Market Events
This SIP functions based on predefined market criteria. You can set triggers like a fall in the Nifty index, a specific NAV threshold, or fund performance metrics. When the market hits that target, your investment is automatically made.
Example: An investor sets a trigger: When Nifty drops by 5%, invest ₹10,000 in Fund A. Since Trigger SIPs are based on specific market conditions, they are ideal for investors who stay updated with market trends and have experience in interpreting them.
Why it’s good:
- Helps investors take advantage of market dips
- Buy More When Markets Are Low
- Avoids Unnecessary Investment During Highs
| SIP Type | Amount | Flexibility | Best For |
|---|---|---|---|
| Regular SIP | Fixed monthly | Low | Salaried, beginners |
| Top-Up SIP | Increases yearly | Medium | Growing income investors |
| Flexible SIP | Varies monthly | High | Business owners, freelancers |
| Trigger SIP | Market-based | High | Market-savvy investors |
Final Word: Which SIP is Best?
There’s no one-size-fits-all when it comes to SIPs. Each type serves a different purpose depending on your income flow, risk appetite, and financial goals. The best part? You can mix and match these types as your financial journey evolves. Whether you’re a salaried employee, a small business owner, or a homemaker, SIPs offer an entry point to mutual funds that fit your budget and lifestyle.
In Conclusion, there’s an SIP type that can align with your goals. Assess your financial situation and choose the SIP that best supports your wealth creation journey.
Don’t wait for a special occasion – SIP is about discipline, not perfection.
Start today – even with ₹500 – and let the power of consistency work for you. Visit https://investwise.finance/ or call on +91 7738 676 026.
Frequently Asked Questions – SIP (Systematic Investment Plan)
1. How much do I need to start a SIP?
You can start a SIP with as little as ₹500 per month. There’s no need for a big lump sum.
2.Is SIP better than FD (Fixed Deposit)?
SIPs in equity mutual funds can offer higher long-term returns (10 – 14%) than FDs (5 – 6%). But SIPs are subject to market risks and are ideal for long-term goals (5+ years).
3.Can I stop my SIP anytime?
Yes. SIPs are fully flexible. You can pause, increase, decrease, or stop them anytime – no penalties.
4.Can I have multiple SIPs?
Yes. You can run multiple SIPs in different mutual funds based on your goals (child education, retirement, house, etc.).
5.What happens if I miss a SIP payment?
Nothing serious. If your bank balance is low and the SIP fails, it just skips that month, however you have to bear a penalty. But consistent investing is key for good results.
6.Is SIP better than a one-time lump sum investment?
SIP helps in rupee cost averaging and reduces market timing risks, making it an ideal choice for most investors.
7.Do SIPs save tax?
Only ELSS SIPs (Equity Linked Savings Scheme) offer tax benefits under Section 80C (up to ₹1.5 lakh/year).
Start Small, Think Big – Your Future Self Will Thank You!
