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Business News/ Brand Stories / What Are the Different Types of SIPs?

What Are the Different Types of SIPs?

This article explains seven different types of SIPs

Through SIPs, you can invest regularly in mutual funds. Premium
Through SIPs, you can invest regularly in mutual funds.

A SIP is a method of investing in mutual funds. You can invest in mutual funds either lump sum or through a systematic investment plan. Through SIPs, you can invest regularly in mutual funds. There are many types of SIPs. To accumulate wealth, you need to choose the right SIP. This article explains seven different types of SIP.

Types of SIP

With SIPs, investors can adopt a disciplined approach to investing with just a one-time mandate. SIPs allow one to make investments every month or quarter. By investing in SIPs, investors may be able to generate significant returns over time. However, the key to a successful SIP is choosing the right one. The following are the seven types of SIP investments available in India:

Regular SIP

Regular SIPs are the most straightforward investment plans. Under this plan, the investor invests a fixed amount at regular intervals. There are various frequencies for SIPs, including monthly, bi-monthly, quarterly, and half-yearly. You can also set up SIPs on a daily and weekly basis. When choosing a SIP, investors can specify the duration, installment amount, and frequency. However, when investing in a regular SIP, one cannot change the investment amount during the investment period.  

Top-up SIP

Top-up SIPs or Step-up SIPs allow investors to increase their SIP amount periodically. Many asset management companies offer stepped-up SIPs. This type of SIP provides more flexibility and enables investors to park large amounts. When an investor's income increases, they can increase their SIP contributions simultaneously. Through compounding, they may be able to build an investment corpus more quickly. 

Flexible SIP

Flexible SIPs offer their investors the flexibility to adjust their investment amounts. It is also known as Flex SIP or Flexi SIP. You can notify the fund house if you want to modify the SIP amount or contributions. However, the intimation should be given at least a week before the installment deduction date. Depending on market conditions or investors' financial circumstances, investors can adjust their SIP amount. When the markets are falling, investors can invest more, while when the markets are rising, they can reduce the SIP amount.

Perpetual SIP

During the SIP application process, the investor must select the SIP tenure. When no tenure is specified, the SIP becomes perpetual. This means SIP will continue until the investor instructs the fund house or manager to stop the investment. Also, if an investor does not wish to limit their contributions with a maturity tenure, they can choose the perpetual SIP option on the application form. By doing so, the investor can stay invested for longer periods while observing the market. In the future, they can decide to redeem at any time.

Trigger SIP

Trigger SIPs are only suitable for investors who are well aware of the market dynamics and are confident of its movements. This type of systematic investment plan requires knowledge of when to buy and sell. With this type of SIP, investors can choose their SIP start date or redeem or switch their SIP once the selected event occurs. Triggers can be set to any event. For example, it can be a favorable market event, an index level or NAV of the fund, or capital appreciation or depreciation. In addition, trigger SIPs are recommended only to experienced investors since they encourage speculation. To set appropriate triggers effectively, it is essential to have sound knowledge and experience.

SIP with Insurance

Few asset management companies provide insurance cover for investors who make long-term investments. Initial coverage is usually ten times the first SIP amount, and it gradually increases over time. Additionally, this feature is only available for equity mutual funds. Note that term insurance is merely an add-on feature that has no effect on the fund's performance.

Multi SIP

Through a multi-SIP, investors can invest in multiple schemes of a fund house. In this way, investors can diversify their investment portfolios. Additionally, it reduces the amount of paperwork. SIP plans can be initiated with a single form and payment instructions.


Systematic investment plans (SIPs) provide investors with a disciplined, convenient method for investing in mutual funds. In India, investors can choose from various types of SIPs that suit their financial goals and market sentiment. With a SIP app, you can simplify investment management by accessing real-time information, tracking your portfolio, and adjusting your SIP parameters easily. Investors can work towards their wealth accumulation goals with confidence and ease when they have the right SIP strategy and tools at hand.


Note: Views and opinions contained herein are for information purposes only and should not be construed as investment advice/ recommendation to any party or solicitation to buy, sale or hold any security or to adopt any investment strategy. It does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient should exercise due caution and/ or seek professional advice before making any decision or entering into any financial obligation based on information, statement or opinion which is expressed herein.

Past performance may or may not be sustained in future.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.

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Published: 04 Mar 2024, 07:44 PM IST
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