SIP stands for Systematic Investment Plan, in terms of mutual fund investment. When you want to invest small amounts in mutual funds regularly and consistently, then you may opt for an Systematic Investment Plan. Let us understand this with an example. Now, if you want to invest Rs 10,000 every month/quarter/half-year etc. then you can go for SIP for the particular mutual fund in which you want to invest.


If your monthly income is not fixed and you do not want to invest same amount every month, then you can also opt for lumpsum mode. In this mode, you can invest according to your comfort. There is no restriction for the amount being invested and the time period. But, if you sincerely want to save for you financial goals, then SIP mode will help you achieve this. Because using SIP mode, you consistently save and also, you get the benefit of market volatility.


Here are the types of SIP which you can opt for as per your income and goals.

1. Flexible SIPs

Also known as Flex SIP or Flexi SIP, it allows you to adjust the SIP amount based on your financial conditions and the market conditions. There is a pre-decided formula regarding the market conditions, which enables the investors to invest more when the markets are falling and go for a lower SIP amount when markets are high.

2. Step-Up SIP

Step-up or top-up SIP allows you to increase the SIP amount at fixed intervals. For instance, you might start investing with Rs. 10,000 SIP in a mutual fund scheme of your choice and instruct the fund house to increase the SIP amount by Rs. 1,000 after every six months.

3. Perpetual SIP

Perpetual SIP is one of the best options available in the systematic investment spectrum as it is linked to every SIP investor. When you start a SIP, the SIP mandate requires you to mention the start and end date for the same. While investors generally mention the starting date, most do not fill in the ending date.

Every SIP with no end date mentioned in the mandate turns into a perpetual SIP, which is deemed to run until 2099. However, you do get the option to stop the SIP by submitting a written application to the fund house. If you only want to invest for a fixed tenure, make sure you enter the SIP end date as well.

4. Trigger SIP

With the Trigger SIP, you get to set a trigger for your SIP investment. For instance, you can mention that your SIP amount should be withdrawn from your bank account and used to purchase units of the selected scheme only if the Net Asset Value (NAV) of the scheme falls to a certain level.

You get other trigger options such as specific dates and even levels of an index like Nifty or Sensex. But, this option is recommended only for experienced investors who have the knowledge and experience to set such triggers effectively.

5. SIP with Insurance

A few asset management companies offer insurance cover if an investor opts for long-duration investments. The initial cover for the insurance is usually ten times the first SIP amount, and it gradually increases with time. Also, this feature is available only for equity mutual funds. It is important to note that term insurance is just an add on feature and doesn’t have any impact on the performance of the fund.

6. Multi SIP

A multi-SIP allows investors to start investing in multiple schemes of a fund house through a single instrument. This helps investors in diversifying their investment portfolio. Furthermore, it also reduces the number of paperwork. Investors can give a single form and payment instruction to start their SIP plans.



Investors should select a SIP type that best suits their financial requirements, knowledge, and goals. 

  • A regular SIP allows investors to invest in an SIP regularly without a pause or top-up. 
  • A step-up SIP will increase the investment amount of SIP every year. 
  • Perpetual SIP is a SIP till eternity. Investors with regular income can invest in all these SIPs.
  • A Flex SIP best suits investors with irregular income. Freelancers, professionals and people with no job safety can consider investing in this SIP as they have the freedom to increase, decrease, pause and restart the SIP as per their wish.
  • A Trigger SIP best suits an investor who understands the market and its dynamics. An investor who doesn’t understand investing nor how the market works shouldn’t pick a trigger SIP.
  • A Multi SIP allows investors to invest in different funds of a fund house. But not all the funds of a fund house tend to perform well. Hence investors have to practice caution while selecting this type of systematic investment plan.

If you want a personalized advice on which sip type will suit you the best, feel free to contact us at +91 9460825477.