What is SIP for Home Loan?
SIP is a method of investing a fixed amount in mutual funds every month. It is perfect for beginners as it reduces the need to time the market and helps you earn returns through regular contributions.
- 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 Home Loan?
You can start a SIP for home loan management by using the following steps:
Step 1: Choose a Mutual Fund- Select a mutual fund based on your financial goals and how much risk you are comfortable with. You can go for equity or hybrid funds for better long-term returns.
Step 2: Decide SIP Amount- Choose an amount that you can comfortably invest every month. Make sure it meets your home loan repayment needs.
Step 3: Set a Time Frame- Decide for how long you want to invest in the SIP. It should ideally match the duration of your home loan.
Step 4: Open a SIP Account- Open an account with an Asset Management Company (AMC) or use an online platform to start your SIP.
Step 5: Link Bank Account- Link your bank account to the SIP to set up automatic monthly deductions.
Step 6: Monitor Progress- Keep track of how your SIP is performing to make sure you are on the right track for your home loan goal.
Step 7: Redeem When Needed- Once your SIP grows to the desired amount, redeem it to pay off your home loan or for any other needs.
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
Points to Consider Before Investing in SIP for Home Loan
You must consider the following key points before you start investing in a SIP for a home loan:
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Check Loan Amount & EMI: Make sure your home loan amount and EMI are manageable. SIPs should help you, not add more pressure.
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Match SIP with Loan Repayment: Pick the best SIP plan that works well with your home loan repayment plan for better results.
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Know Your Risk: SIPs in equity funds can be risky. Choose funds according to your risk tolerance.
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Impact of Interest Rates: Your home loan interest rate matters. See if the SIP returns can cover or reduce your loan burden.
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Investment Time Period: Longer SIPs generally give better returns. Plan your SIP duration according to your loan repayment time.
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Diversify Your Investments: Do not invest all your money in one SIP. Spread it across different funds to reduce risk and get better returns.
Note: You can use SIP calculator online to calculate your maturity amount with different annual returns
Key Benefits of Investing in a SIP for Home Loan
The key benefits of investing in a SIP for home loan are as follows:
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Regular Savings: SIPs allow you to invest small amounts regularly, helping you save without financial stress.
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Compound Growth: Your money grows through compounding, potentially giving higher returns over the long term.
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Lower Risk: SIPs in balanced or debt funds reduce the impact of market volatility, making it safer for home loan repayments.
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Tax Benefits: If you invest in tax-saving SIPs (ELSS), you can reduce your taxable income under Section 80C.
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Flexibility: You can increase or decrease your SIP amount based on your financial situation, making it flexible.
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Beat Inflation: SIPs offer returns that can outpace inflation, helping you save more for future home loan repayments.
