Key Features & Benefits
Rupee Cost Averaging: SIPs help manage market volatility by purchasing more units when prices are low and fewer when prices are high, lowering the overall average cost per unit over time.
Power of Compounding: Regular investments reinvest returns to earn even more, leading to significant wealth growth over a long horizon.
Low Entry Barrier: You can start an SIP with as little as ?100 to ?500 per month, making it highly accessible.
Disciplined Investing: Automatic deductions from your bank account ensure consistent savings without the need to "time the market".
Common Types of SIPs
Regular SIP: Fixed amount at fixed intervals for a set tenure.
Top-up (Step-up) SIP: Allows you to increase your investment amount periodically (e.g., annually) as your income grows.
Flexible SIP: Allows you to adjust the investment amount based on your cash flow or market conditions.
Perpetual SIP: Has no fixed end date and continues until you manually stop it. Note that as of October 2023, many mandates now have a maximum limit of 30 years.
Trigger SIP: Executes an investment or redemption based on specific market events, like a percentage dip in index or NAV.