SIP for Buying House
Systematic Investment Plan (SIP) is a great way to save money if your goal is
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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 SIP for Buying House?
A SIP for buying a house allows you to invest a fixed amount regularly in mutual funds to accumulate the necessary funds for purchasing a home. By investing consistently through a Systematic Investment Plan (SIP) over time, you benefit from the power of compounding and market growth. This approach helps you save for a down payment or the full cost of the house, reducing the need for large lump sum investments. It also spreads risk and allows you to invest based on your financial capacity.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| Max Life |
27.23% |
21.07% |
|
| Tata AIA |
30.99% |
21.69% |
|
| Bajaj Allianz |
24.23% |
12.8% |
|
| HDFC Standard |
25.77% |
14.87% |
|
| Canara HSBC Oriental Bank |
17.51% |
10.29% |
|
| Bharti AXA |
23.03% |
15.02% |
|
| Birla Sun Life |
26.67% |
14.18% |
|
| ICICI Prudential |
22.68% |
13.38% |
|
| LIC |
- |
- |
|
| PNB Metlife |
24% |
16.86% |
|
Fund rating powered by
Last updated: May 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% |
|
How to Start a SIP for Buying House?
Follow the steps mentioned below to start a SIP for buying a house:
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<pSet Your Goal: Determine the amount you need for the down payment or other housing expenses and set a target timeline.
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Choose the Right Fund: Select a mutual fund that suits your risk profile—equity funds for higher returns or debt funds for lower risk.
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Decide the SIP Amount: Based on your goal and timeline, decide how much you can comfortably invest monthly.
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Select a Fund House: Research and choose a reliable fund house or platform that offers SIP investment options.
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Complete KYC: Complete your Know Your Customer (KYC) process through the fund house or an investment platform.
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Start the SIP: Set up the SIP through the chosen platform or fund house, and link it to your bank account for automatic deductions.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
18.4%
High Growth Fund
17.46%
Top 200 Fund
14.57%
Accelerator Mid-Cap Fund II
14.81%
Opportunities Fund
10.58%
Growth Plus Fund
13.35%
Accelerator Fund
14.61%
Growth Opportunities Plus Fund
15.6%
Multiplier
11.48%
Equity Top 250 Fund
13.31%
Future Apex Fund
12.32%
Opportunities Fund
14.24%
Frontline Equity Fund
15.03%
Virtue II
10.88%
Pension Dynamic Equity Fund
11.8%
Equity Fund
10.32%
Blue-Chip Equity Fund
SIP Calculator to Estimate Investment Amount for Buying House
An SIP Calculator helps you estimate how much you need to invest regularly to buy a house in the future. By inserting details like your target amount, expected return, and investment duration, the calculator gives you an idea of how much you need to invest monthly. This tool helps in planning your finances efficiently and ensures that you stay on track to buy your dream house.
Points to Consider Before Investing in SIP for Buying House
Before you start investing in a SIP plan to buy a house, you should consider the following points:
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Investment Horizon: Plan for a long-term investment (5-10 years) to match your home-buying goal.
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Amount Required: Estimate the amount you will need for the down payment and other costs of buying a house.
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Risk Profile: Understand your risk tolerance. Equity SIPs are riskier but have higher potential returns, while debt SIPs are safer.
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Returns Expectation: Equity SIPs generally provide better returns, but remember, past performance does not guarantee future returns.
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Liquidity Needs: SIPs are not easy to withdraw quickly. Keep some emergency funds separate from your SIP investments.
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Tax Benefits: If you invest in ELSS SIPs, you can get tax deductions under Section 80C of the Income Tax Act.
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Discipline: Stick to a fixed monthly investment. Consistency is important for long-term growth.
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Market Timing: Don’t try to time the market. Regular investments over time help reduce the impact of market volatility.
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Inflation Impact: Keep inflation in mind while planning your SIP to ensure your savings grow enough to meet future costs.
Key Benefits of Investing in SIP for Buying House
You get the following key benefits by investing in a SIP for house purchasing:
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Affordable Investment: SIPs allow you to invest small amounts regularly, making it easier to save for a house over time.
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Power of Compounding: Regular investments grow through compounding, helping you accumulate a significant corpus for your home.
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Rupee Cost Averaging: SIPs reduce the impact of market fluctuations by averaging the cost of your investments over time.
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Tax Savings: ELSS SIPs offer tax benefits under Section 80C, helping you save on taxes while investing for your home.
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Disciplined Savings: SIPs promote a disciplined approach to saving, ensuring you stay consistent with your investment goals.
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Flexibility: You can adjust your SIP amount or switch funds according to your financial situation and market conditions.
Conclusion
Using SIP to save for a house is a smart and disciplined approach. By investing regularly in mutual funds, you can accumulate a significant amount over time, while spreading out risk. In 2024, SIPs offer flexibility and the potential for higher returns compared to traditional savings methods. Whether you aim to buy a house in a few years or in the long run, SIP helps you stay on track with your goal.
FAQs
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What is SIP for buying a house?
SIP (Systematic Investment Plan) for buying a house is a disciplined investment strategy where you invest a fixed amount regularly in mutual funds. This helps accumulate funds over time for a home purchase.
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How does SIP help buy a house?
SIP helps in creating a lump sum amount over time, enabling you to gather the necessary funds for a down payment or full house purchase.
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What is the minimum SIP amount for buying a house?
The minimum SIP amount depends on the mutual fund you choose. Generally, it can start from as low as ₹500 per month.
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Is SIP a good option for buying a house?
Yes, SIP is a
good investment option as it offers potential for high returns through equity mutual funds, which helps accumulate funds for a house.
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How long should I invest in SIP to buy a house?
Ideally, you should invest in SIP for at least 5-10 years to build a significant corpus for buying a house.
