SIP for Students

What is SIP for Students?

SIP, or Systematic Investment Plan, is a simple way for students to begin investing. By investing a fixed amount each month, students can gradually build their savings. This helps in achieving future goals and teaches the importance of saving regularly. SIPs allow you to invest in mutual funds and benefit from power of compounding returns. This makes it a great option for students looking to ensure their financial future.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Monthly Investment ₹22.4 L

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Top Funds with High Returns (Past 7 Years)

17.86%

High Growth Fund

17.65%

Top 200 Fund

13.7%

Accelerator Mid-Cap Fund II

14.29%

Opportunities Fund

9.16%

Equity II Fund

12.7%

Accelerator Fund

13.69%

Grow Money Plus Fund

14.94%

Multiplier

11.41%

Equity Top 250 Fund

12.58%

Future Apex Fund

11.87%

Opportunities Fund

13.91%

Frontline Equity Fund

15.2%

Virtue II

10.42%

Pension Dynamic Equity Fund

11.81%

Top 300 Fund

9.94%

Blue-Chip Equity Fund

How SIP for Students Work?

Let us learn the working of best SIP for students from the steps mentioned below:

• Small Monthly Investments: Students can start with as low as ₹100 per month. This makes it easy to fit into a student’s budget.

• Regular Saving Habit: SIPs help students save money every month on a fixed date, building discipline in money management.

• Earn Through Compounding: The invested money grows over time. The returns are reinvested, helping create more wealth.

• Flexible to Manage: Students can stop, increase, or withdraw the investment anytime as per their need.

• Lower Risk Through Diversification: SIPs invest in different types of mutual funds, reducing the risk by spreading the money across sectors.

• Future Financial Goals: Starting early helps students save for future needs like higher education or travel.

SIP Calculator to Estimate Investment Amount for Students

An SIP calculator helps students estimate the future value of their investments when they invest regularly through a Systematic Investment Plan (SIP). By entering details like monthly investment amount, expected rate of return, and investment duration, the calculator shows the total corpus at maturity. This tool is easy to use and helps students plan small, regular savings effectively. Let us learn how the SIP calculator works:

• SIP Calculator for Student Fund: Select “I Know My Goal Amount” option in the calculator and enter these details-

  • Student Corpus Estimate: ₹30,00,000 (education and travel fund)

  • Investment Duration: 10 years

  • Expected Return: 15% annually.

• SIP Calculator Results: The calculator will show these results-

  • Monthly Investment Required: ₹11,400

  • Total Investment: ₹13,70,000

  • Amount Required: ₹30,00,000

  • Wealth Gained from SIP: ₹16,30,000

Key Points to Consider Before Investing in a SIP for Students

The following list shows the key points you should consider before starting to invest in a chosen best SIP for students:

• Start with a Small Amount: Begin with ₹500 or ₹1,000 per month. It will be easier to manage your student budget.

• Know Your Goal: Decide why you want to invest—whether it’s for higher studies, travel, or just saving money.

• Choose the Right Duration: Invest for a longer period to get better returns through the power of compounding.

• Understand Your Risk Level: Select mutual funds based on your risk-taking ability. Beginners can go for low-risk funds.

• Check Flexibility: Make sure the SIP allows you to stop, pause, or increase investments when needed.

• Research Before Investing: Look at the mutual fund’s past performance and ratings to make a smart choice.

Conclusion

Starting a SIP (Systematic Investment Plan) as a student is a smart way to build wealth early. With minimal investment amounts, SIPs help you develop financial discipline and take advantage of compounding. In 2024, many mutual funds offer student-friendly options with good returns and manageable risk. By starting small and staying consistent, you can secure a brighter financial future while balancing your studies and savings goals.