PGIM SIP Investment

DHFL SIP Plans were Systematic Investment Plans offered by Dewan Housing Finance Corporation Limited (DHFL). In 2021, DHFL merged with PGIM to become a part of an entity called PGIM India Asset Management. PGIM SIP plans are a way to regularly invest a fixed amount in PGIM India Mutual Funds, benefiting from rupee-cost averaging and automated investing for long-term wealth building.

Read more

SIP Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80 C
Zero LTCG Tax
Zero LTCG Tax^ (Unlike 10% in Mutual Funds)
Disciplined & worry-free investing
Disciplined & worry-free investing

What are PGIM SIP Plans?

PGIM SIP plans refer to Systematic Investment Plans offered by PGIM India Mutual Fund. SIP is a method to invest a fixed amount of money in a mutual fund or any other fund scheme at regular intervals (monthly, quarterly, etc.). This is a disciplined approach to investing and helps build wealth over time.

Here’s how they work:

  • Regular Investment: You invest a fixed amount at chosen intervals.

  • Unit Allocation: You get fund units based on the NAV on the investment date.

  • Rupee Cost Averaging: Over time, you buy more units when the market is low and fewer when it's high, potentially balancing out the cost per unit.

  • Compounding: Reinvesting your returns can grow your wealth over time.

SIPs are a disciplined way to invest and benefit from rupee-cost averaging and compounding.

What are the SIP Plans Offered by PGIM?

Some of the best SIP plans offered by PGIM are as follows:

Fund Name Fund Category Risk Profile
PGIM India Small Cap Fund Equity  High
PGIM India Large Cap Fund: Equity  High
PGIM India Flexi Cap Fund Equity  High
PGIM India ELSS Tax Saver Fund Equity  High
PGIM India Midcap Opportunities Fund Equity  High
PGIM India Overnight Fund Debt Low to Moderate
PGIM India Ultra Short Duration Fund Debt Low to Moderate 
PGIM India Dynamic Bond Fund Debt Low to Moderate 
PGIM India Corporate Bond Fund Debt Low to Moderate 
PGIM India Gilt Fund Debt  Low to Moderate 
PGIM India Arbitrage Fund Hybrid Moderate
PGIM India Hybrid Equity Fund Hybrid  Moderate
PGIM India Equity Savings Fund Hybrid Moderate
PGIM India Balanced Advantage Fund Hybrid  Moderate

Benefits of PGIM SIPs

The key benefits of PGIM SIP plans are as follows:

  • Discipline: SIPs automate your investment, ensuring consistent contributions regardless of market fluctuations.

  • Flexibility and Convenience: PGIM SIPs provide the flexibility to choose the investment amount and the frequency of investment. Investors can start with a modest sum and increase their investments gradually as their income grows.

  • Rupee Cost Averaging: PGIM SIPs help average out the cost per unit over time.

  • Various Funds: PGIM offers a range of SIP plans invested in various asset classes, allowing investors to diversify their portfolios and reduce the risk associated with market fluctuations.

  • Start Small: You can begin investing with a small amount, making it accessible to many.

  • Smart SIP: PGIM offers Smart SIP, which combines SIP with life insurance coverage that increases over the initial years, providing extra security.

How Do PGIM SIP Plans Work?

PGIM SIP plans function just like any other SIP offered by companies. Here's how they work:

  • Choose a PGIM Fund Scheme: Pick a mutual fund or any other fund offered by PGIM India Mutual Fund that aligns with your investment goals and risk tolerance.

  • Set Up Your SIP: Decide a fixed amount you want to invest regularly. This can be a small sum to begin with. You must also choose the investment frequency - monthly, quarterly, or even annually.

  • Automatic Deductions: PGIM will automatically deduct the amount you choose from your linked bank account at the designated intervals.

  • Unit Allocation: Based on the Net Asset Value (NAV) of the fund on the investment date, you'll receive units of the chosen scheme. NAV reflects the per-unit price of the mutual fund.

  • Rupee Cost Averaging: Over time, with consistent SIP contributions, you'll purchase more units when the market is low and fewer units when the market is high. This helps average out the cost per unit over the long term.

  • Growth through Compounding: Any returns generated by the fund are reinvested, leading to growth over time through compounding.

  • SIP Calculator:Use an online SIP Calculator to estimate your interest earned and total returns on your investment.

  • Easy Exit: You can easily exit or redeem your SIP fund units, partially or completely, at any time, based on your financial needs and goals.

Tips for Successful PGIM SIP Investment

  • Stick to a Disciplined Approach: Consistency is important in SIP investments. Regularly contributing the predetermined amount ensures the benefits of rupee cost averaging and compounding.

  • Review and Rebalance Periodically: Review the performance of your SIP investments periodically and rebalance the portfolio if needed to align with your financial goals.

  • Stay Informed about Market Trends: Keeping track of market trends and staying informed about the performance of your SIP funds can help make informed investment decisions.

Summary

PGIM SIP Plans offer you a disciplined and convenient route to invest in the best SIP plans. By contributing fixed amounts at regular intervals, you could benefit from rupee cost averaging and the potential for long-term wealth creation.

FAQs

  • Does PGIM offer any unique SIP features?

    Yes, PGIM offers Smart SIP, which combines SIP with life insurance cover for the initial investment period.
  • How do I choose a PGIM SIP plan?

    Before choosing a PGIM SIP plan, consider your investment goals, risk tolerance, and investment horizon. PGIM offers a variety of fund schemes across different asset classes (equity, debt, hybrid) to cater to diverse investor needs.
  • Are there any minimum investment amounts for PGIM SIPs?

    PGIM often allows you to start investing with a minimum amount, sometimes as low as Rs. 1000 monthly. However, it's advisable to check the specific scheme details for confirmation.
  • What are Equity, Debt and Hybrid Funds?

    • Equity Funds: Invest in stocks of companies, aiming for high returns but with higher risk due to market fluctuations.

    • Debt Funds: Invest in bonds and government securities, offering lower risk and predictable income but with moderate returns.

    • Hybrid Funds: A mix of equity and debt investments, balancing risk and returns. The risk profile depends on the specific allocation between the two asset classes. They aim for a balance between growth potential and income generation.

+For Mutual Fund midcap category Returns https://www.morningstar.in/tools/mutual-fund-category-performance.aspx & for Insurance midcap fund category Returns- https://www.morningstar.in/tools/insurance-fund-category-performance.aspx
*Past 10 Year annualised returns as on 01-12-2023
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

SIP plans articles

Recent Articles
Popular Articles
Why You Should Increase SIP Amount With Increase in Your Salary

17 Jun 2024

As you earn more, it is smart to put some of that extra money to
Read more
Right Time to Start Investing in Lumpsum and SIP

17 Jun 2024

Deciding when to start investing can be tricky, especially when
Read more
Best SIP Plans for 500 per Month

07 May 2024

Investing through a Systematic Investment Plan (SIP) allows you
Read more
Why You Should Not Cancel Your SIP Within a Short-Term?

05 Apr 2024

Systematic Investment Plans (SIPs) have become a popular
Read more
Benefits of One - Time Mandate For SIP Investment

26 Mar 2024

One Time Mandate (OTM) for SIP investments make things easier by
Read more
Index Fund SIP Calculator
  • 06 Feb 2023
  • 8575
An Index Fund SIP is a method of investing in index funds systematically over regular intervals. Index funds are
Read more

Invest In SIP & Get Financial Freedom

With BEST RETURNS and tax free maturity*

*under 10(10D)
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL