What are the types of SIPs available in India?
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What are the types of SIPs available in India?

  • Highlights

  • A top-up SIP allows maximum flexibility

  • A flexible SIP allows you to alter contribution

  • A perpetual SIP is not bound by time

  • Trigger SIPs allow you to specify an event for redemption

SIPs offer you a chance to take a disciplined approach to your investments. Here, you pay a recurring amount every month, which market experts in fund houses use to invest in mutual funds to fetch you high returns. However, choosing the right SIPs is the key here. In order to select the best SIP plans in India you will have to first understand the different types available in the market today.

Take a look at the list of SIPs here.

Top-up SIP

Many fund houses will allow you to increase your SIP amount at regular intervals. While choosing your SIP variants, it is wise for you to look for the best SIP plans under this offering. This will add more flexibility to your recurring contributions and you will be able to park a bigger amount whenever the mutual fund scheme for your investment starts performing better and you have the income to do so. You can increase the monthly investment amount in multiples of Rs.500 when you choose a top-up SIP.

Flexible SIP

As the name suggests, this SIP variant allows you to alter the amount you want your fund house to deduct every month as your contribution. Whenever you face a snag in your cash flows, for example, you can intimate your fund manager to stop the SIP instalment. This allows you a chance to skip payments until the time your financial condition improves. Alternatively, you can increase the fund deduction whenever you have surplus cash to spare. Under both circumstances you will have to intimate your SIP manager at least a week before your deduction date.

Perpetual SIP

At the time you begin your investment in an SIP, you choose its tenor. If you don’t specify the maturity tenor, then your SIP becomes a perpetual SIP. The tenor for this will remain undecided until you mention it to your fund manager or fund house. In case you do not want to limit your contribution with a maturity tenor, you can deliberately choose the perpetual SIP variant. This will give you a chance to observe the market and the gain from it until you decide to redeem your SIP.

5 Reasons why you should invest in SIPs

Trigger SIP

You can choose this SIP variant only if you are sure of the market and know when to take the buy and sell call. This SIP allows you to set your SIP start date or redeem or switch your SIP once your selected event occurs. This may be linked to a favourable market event or to an index level or NAV or capital appreciation or depreciation.

Equipped with this information you can choose the best SIP plans in India from fund houses like Bajaj Finserv. A trusted name, Bajaj Finserv not only offers you top SIPs, but also the use of several online SIP calculators to calculate your returns and plan according to your financial goals.

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