Perpetual SIP
Wealth creation is a result of long-term investing. In a Perpetual SIP,
Read more
SIP Plan Benefits
Start SIP with as low as ₹1000
No hidden charges
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax¶
Disciplined & worry-free investing
What is Perpetual SIP?
A Perpetual Systematic Investment Plan (SIP) operates as an open-ended investment strategy where a fixed amount is regularly contributed by an investor, typically monthly, into a mutual fund SIP scheme without a predefined end date. As these payments are commonly facilitated via Electronic Clearing Service (ECS), the SIP continues without termination until you explicitly instruct the Asset Management Company to stop payments. This structure is particularly beneficial for long-term investors, as it makes the need for periodic renewals ineffective, enabling uninterrupted investment for any desired duration.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Axis Max Life |
28.6% |
21.1% |
|
| Tata AIA Life |
26.44% |
21.21% |
|
| Bajaj Allianz |
20.42% |
12.78% |
|
| HDFC Life |
21.36% |
14.86% |
|
| ICICI Prudential Life |
20.5% |
- |
|
| Birla Sun Life |
22.2% |
14.74% |
|
| PNB MetLife |
20.4% |
16.29% |
|
| Canara HSBC Life |
15.46% |
10.38% |
|
| LIC India |
10.91% |
- |
|
| SBI Life |
16.9% |
11.92% |
|
Fund rating powered by
Last updated: Aug 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% |
|
Last updated: August 2025
Features of Perpetual SIP
Perpetual SIPs are a type of SIP that come with distinct features that cater to long-term investment horizons:
-
Indefinite Investment Period: Investments continue automatically until cancelled by the investor.
-
Automated Payments: Fixed amounts are debited automatically at chosen intervals.
-
Flexibility to Stop/Modify: Investors retain the option to pause, stop, or change the investment amount at any time.
-
Aids Rupee Cost Averaging: Helps average out the cost of acquisition over a prolonged period.
-
No Renewal Hassle: Eliminates the need for manual renewals or re-initiation of SIPs.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
17.8%
High Growth Fund
20.24%
India Consumption Fund
14.99%
Accelerator Mid-Cap Fund II
15.24%
Global Equity Index Funds Strategy
15.5%
Pension India Consumption Fund
15.75%
Multiplier
15.25%
Virtue II
11.08%
Growth Plus Fund
13.96%
Accelerator Fund
11.46%
Pension Dynamic Equity Fund
14.37%
Frontline Equity Fund
12.56%
Equity Pension
11.71%
Equity Top 250 Fund
14.85%
Growth Opportunities Plus Fund
13.71%
Future Apex Fund
13.87%
US Equity Fund
Difference Between Normal SIP and Perpetual SIP
The fundamental difference between a Normal SIP and a Perpetual SIP lies in their tenure and operational continuity.
| Feature |
Normal SIP |
Perpetual SIP |
| Tenure |
Fixed tenure (e.g., 1 year, 3 years) |
Indefinite, no end date |
| Cessation |
Automatically stops at tenure end |
Continues until cancelled by investor |
| Renewal |
Requires manual renewal post-tenure |
No renewal required |
| Goal Suitability |
Short to medium-term financial goals |
Long-term and open-ended financial goals |
| Administrative Ease |
More administrative oversight for renewals |
Set-and-forget, less administrative burden |
Who is Perpetual SIP for?
Perpetual SIPs are particularly well-suited for investors with:
-
Long-Term Financial Goals: Individuals planning for retirement, children's education or marriage, or other objectives spanning decades.
-
Disciplined Investment Mindset: Those who prefer a 'set it and forget it' approach to continuous investing.
-
Confidence in Fund Performance: Investors who have thoroughly researched a fund and believe in its sustained long-term potential.
-
Desire for Compounding Benefits: Ideal for maximizing the power of compounding over extended periods without interruptions.
Normal SIP or Perpetual SIP: Which is Better?
Neither a Normal SIP nor a Perpetual SIP is inherently "better"; the optimal choice depends entirely on an individual's financial objectives, investment horizon, and risk appetite.
-
Normal SIPs are generally more suitable for short to medium-term financial goals with a defined timeline, such as saving for a down payment on a car within two years or funding a vacation. They offer a structured approach for specific, time-bound objectives.
-
Perpetual SIPs are advantageous for investors committed to long-term financial goals without a fixed end date, like retirement planning or general wealth accumulation. They require a long-term commitment and are ideal for those who wish to leverage the full power of compounding over decades.
Ultimately, the decision should align with your specific financial planning needs.
Benefits of Perpetual SIP
Perpetual SIPs offer several advantages for long-term investors:
-
Uninterrupted Compounding: Allows investments to grow consistently over extended periods, maximizing the power of compounding without breaks.
-
Reduced Administrative Burden: Eliminates the need for frequent renewals, saving time and effort.
-
Enhanced Discipline: Promotes continuous investment habit, fostering financial discipline over the long run.
-
Better Rupee Cost Averaging: Continuous investment across various market cycles helps in averaging out the purchase cost of units, potentially leading to better returns during volatile periods.
-
Flexibility and Control: Despite its indefinite nature, investors retain full control to stop, pause, or modify their SIP at any point.
Are there Any Disadvantages of Perpetual SIP?
While highly beneficial for long-term goals, Perpetual SIPs require consistent investor vigilance. Without a fixed end date, continuous investment into a fund, particularly one chosen for past performance, can lead to losses if its performance declines and is not regularly monitored. The absence of an automatic stop necessitates active review to ensure the fund remains aligned with current financial goals and risk tolerance.
Points to Keep in Mind While Choosing Perpetual SIP
Before opting for a Perpetual SIP, consider the following:
-
Fund Selection: Choose funds with a consistent long-term track record and a well-defined investment strategy.
-
Regular Review: Periodically assess the fund's performance against its benchmarks and your financial goals.
-
Market Conditions: While SIPs average costs, be aware of broader market cycles for potential modifications.
-
Financial Goals Alignment: Ensure the fund continues to align with your evolving long-term financial objectives.
-
Exit Strategy: Have a clear understanding of when and why you might need to stop or redeem your investments.
Conclusion
Perpetual SIPs represent a powerful tool for disciplined, long-term wealth accumulation, offering convenience and the potential for substantial compounding benefits. By eliminating the need for periodic renewals, they simplify the investment journey for those committed to enduring financial goals. However, the onus remains on the investor to diligently monitor fund performance and ensure the chosen scheme continues to align with their overarching financial strategy, ensuring that this open-ended commitment truly serves its purpose.
FAQs
-
What is a Perpetual SIP?
It's an open-ended SIP without a fixed end date.
-
How is a Perpetual SIP stopped?
You must manually inform the AMC to stop it.
-
Who is a Perpetual SIP for?
It's ideal for investors with long-term financial goals.
-
Does Perpetual SIP need renewal?
No, a Perpetual SIP does not require renewals.
-
What is a key disadvantage of Perpetual SIP?
It requires regular monitoring of fund performance.
