Perpetual SIP

A perpetual SIP (Systematic Investment Plan) is a mutual fund investment that continues indefinitely without a fixed end date, allowing you to invest for as long as you want without needing to renew the plan. To set one up, you simply leave the termination date blank on the SIP mandate form.
EXPLORE FUNDS
Perpetual SIP in mutual funds
EXPLORE FUNDS
3 min
10-November-2025

A Perpetual SIP is a type of Systematic Investment Plan in mutual funds that runs without a fixed end date. Unlike regular SIPs with a defined tenure, it continues until the investor chooses to stop it. You can discontinue anytime by placing a request with your AMC or bank. This makes perpetual SIPs suitable for long-term, hassle-free investing, as you don’t need to renew them periodically.

What is Perpetual SIP?

A Perpetual SIP is a type of Systematic Investment Plan (SIP) that does not have a fixed end date and continues indefinitely. When filling out the SIP mandate form, you can choose to leave the end date section empty, indicating that you have opted for a perpetual SIP, which typically extends until 30 years.

Usually, Electronic Clearing Service (ECS) is set up for monthly SIP payments, ensuring your perpetual SIP runs continuously until you decide to cancel it. There is no need to renew your SIPs; you can keep investing as long as you wish.

Key features of a Perpetual SIP: How it works

A Perpetual SIP allows investors to keep investing without setting an end date, offering a smooth and continuous path to long-term wealth creation. Here are the main features that make it a useful choice:

  • No fixed end date: The SIP runs indefinitely, supporting long-term financial growth.
  • Automatic continuation: No manual renewals are required, making it hassle-free.
  • Flexible controls: Investors can pause, modify, or stop the SIP whenever they choose.
  • Compounding advantage: A longer investment duration helps boost potential returns over time.

Advantages of choosing Perpetual SIP

Perpetual SIPs offer an enduring investment solution compared to normal SIPs, which have a fixed time frame. With perpetual SIPs, there's no end date, allowing continuous investment in the same mutual fund. Here are the key advantages:

  • Long-term investment: Perpetual SIPs allow long-term wealth accumulation without worrying about SIP end dates, eliminating paperwork for new SIPs.
  • Flexibility: Unlike normal SIPs, perpetual SIPs enable indefinite investment, offering flexibility to adjust investment amounts or stop at any time.
  • Rupee cost averaging: Continuous investment allows averaging investment costs, buying more units during market downturns, potentially increasing long-term returns.
  • Compounding: Perpetual SIPs benefit from compounding, where earned interest generates further interest over time, fostering significant investment growth.
  • Convenience: Eliminates the need for frequent SIP renewals, automating investments and focusing on long-term financial objectives.
  • Financial discipline: Encourages regular saving habits, fostering financial independence over time.

Also read: What Is Compound Annual Growth Rate (CAGR)

How is Perpetual SIP different from normal SIP?

Comparison Normal SIP Perpetual SIP
End date Has a specific end date, stopping debits at termination. No end date, allowing investments to continue indefinitely.
Renewal Requires investors to renew before the end date. No renewal needed as investments continue perpetually.
Suitability Suited for investors with fixed investment tenures. Ideal for long-term investments without specific timelines.
Termination date Investors must specify a termination date. No termination date required as it's an ongoing investment.


Is Normal SIP better or Perpetual SIP?

The choice between normal SIP and perpetual SIP depends on the investor's financial goals, risk tolerance, and investment horizon. While normal SIPs are suitable for short to medium-term goals, perpetual SIPs are ideal for long-term wealth creation and financial planning.

Are there any risks or disadvantages of Perpetual SIP?

If you opt for Perpetual SIPs in a mutual fund based on its recent strong performance, and the fund continues to do well for some time, you might keep investing. However, if the fund's performance declines over time, you may not realise it and keep investing. Continuously investing without noticing poor recent performance could lead to losses. Therefore, it is essential to monitor the fund's performance regularly.

Important factors to consider while choosing perpetual SIP

Before choosing a Perpetual SIP, it’s important to check whether it fits your long-term financial plan. Keep the following points in mind:

  • Investment horizon: Perpetual SIPs work best if you intend to stay invested for many years.
  • Financial goals: For fixed-time goals, such as buying a home in five years, a regular SIP with a defined end date may be more suitable.
  • Risk tolerance: These SIPs suit investors who are comfortable with long-term market ups and downs.
  • Convenience: If you prefer a hands-off investing style, a Perpetual SIP removes the need for renewals.

Building a diversified mutual fund portfolio can further strengthen your SIP strategy. Choosing funds based on your risk level and future goals helps you optimise returns and manage risk more effectively.

How to stop, pause, or modify a Perpetual SIP

If you want to change or discontinue a Perpetual SIP, you can do it easily by following these steps:

Step 1: Log in to your mutual fund platform or bank’s online portal.
Step 2: Go to the section where your SIP investments are listed.
Step 3: Select the option to modify, pause, or cancel the SIP.
Step 4: Complete the on-screen steps as instructed.
Step 5: Confirm the request and save the confirmation for your records.

Conclusion

Perpetual SIPs offer investors a convenient and flexible way to build wealth over the long term. By understanding the features, benefits, and risks associated with perpetual SIPs, investors can make informed decisions and achieve their financial objectives effectively. It is essential to conduct thorough research before embarking on a perpetual SIP journey.

Essential tools for mutual fund investors

Mutual Fund Calculator

Lumpsum Calculator

SIP Investment Plan Calculator

Step Up SIP Calculator

SBI SIP Calculator

HDFC SIP Calculator

Axis Bank SIP Calculator

ICICI SIP Calculator

Nippon India SIP Calculator

BOI SIP Calculator

Motilal Oswal Mutual Fund SIP Calculator

Kotak Bank SIP Calculator

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