What is a Systematic Investment Plan?
A systematic Investment Plan commonly known as SIP is a method of investing your money in different investment schemes. One needs to invest a fixed amount over regular intervals such as monthly, quarterly, semi-annually, or yearly.
Rather than investing your money in a lump-sum manner, you can choose to invest through SIP and the amount of money can be as low as Rs. 500 depending upon the nature of the scheme.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Max Life |
27.23% |
22.19% |
|
| Tata AIA |
30.96% |
22.84% |
|
| Bajaj Allianz |
23.63% |
13.87% |
|
| HDFC Standard |
25.19% |
15.94% |
|
| Canara HSBC Oriental Bank |
19.43% |
11.22% |
|
| Bharti AXA |
23.07% |
15.89% |
|
| Birla Sun Life |
26.07% |
15.44% |
|
| ICICI Prudential |
23.04% |
14.48% |
|
| LIC |
- |
- |
|
| PNB Metlife |
24.23% |
17.63% |
|
Fund rating powered by
Last updated: Jun 2025
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| QUANT |
23.92% |
31.48% |
|
| PARAG PARIKH |
20.69% |
26.41% |
|
| EDELWEISS |
22.34% |
24.29% |
|
| KOTAK |
24.64% |
25.01% |
|
| MIRAE ASSET |
19.74% |
24.32% |
|
| PGIM INDIA |
14.75% |
23.39% |
|
| DSP |
18.41% |
22.33% |
|
| CANARA ROBECO |
20.05% |
21.80% |
|
| SUNDARAM |
18.27% |
18.22% |
|
What is Tax-Saving SIP?
Saving taxes on your investment is one of the many benefits of investing through SIP. However, are all SIP tax-free?
Well, SIPs are one of the best tax-saving tools that come with high returns on your investments.
Take a look below to explore some of the investment options for tax saving:
One of the most common tax-saving investment schemes through SIP is ELSS. Equity Linked Savings Scheme or ELSS Funds are tax-saving equity funds that come with a mandatory lock-in period of three years. Investing your money in ELSS offers the dual benefit of wealth accumulation and tax savings. These funds invest their major portion into equity or equity-related instruments.
Another investment option by which you can save taxes is Unit-Linked Insurance Plans (ULIPS). ULIP is a combination of investment and insurance. One part of the premium paid by the policyholder is used to provide a life insurance cover and the remaining sum is invested. With ULIPs the insured can avail of life insurance coverage as well as tax benefits on the investment returns and premium paid towards the policy under sections 80C and 10(10D) of the Income Tax Act 1961.
Other than these two, the individual also has several other investment options wherein one can save taxes such as Sukanya Samriddhi Yojana, National Pension System (NPS), Senior Citizen Saving Scheme (SCSS), Fixed Deposits & Recurring Deposits.
In order to calculate the benefit amount, SIP calculator is a useful online tool.
What are the SIP Tax Benefits?
Below-mentioned is the SIP Tax benefits one can avail by investing in different investment schemes:
-
Tax Benefits from investing in ELSS
By investing in ELSS through SIP, one can save up to Rs1.5 lakhs a year in taxes under Section 80C of the Income Tax Act, 1961.
-
Tax Benefit from Investing in ULIPs
The premiums paid for ULIPs are eligible for a tax deduction under Section 80C up to a maximum of Rs 1.5 lakhs.
