Top 5 Reasons Why You Should Consider Investing Through SIP for Higher Returns

The popularity of a Systematic Investment Plan (SIP) has increased tremendously in the last few years. As one of the disciplined and safest options of investment, most of the market experts suggest investing in mutual funds^^ through SIP. If we talk about long-term wealth accumulation and smart investment planning then equity investment has given far profitable returns as compared to the debt-based investment instrument.

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SIP Plan 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 80C^
Zero LTCG Tax
Zero LTCG Tax
Disciplined & worry-free investing
Disciplined & worry-free investing

Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹10,554

NAV

116.73

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

72.33

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.68 15.84 15.41 %

Instant tax receipt
AUM (Cr)

₹3,256

NAV

71.47

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.4 16.29 15.25 %

Instant tax receipt
AUM (Cr)

₹5,482

NAV

82.51

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.42 12.78 14.99 %

Instant tax receipt
AUM (Cr)

₹35,798

NAV

77.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.36 14.86 14.73 %

Instant tax receipt
AUM (Cr)

₹426

NAV

68.96

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.61 13.53 14.45 %

Instant tax receipt
AUM (Cr)

₹4,390

NAV

69.25

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.55 14.76 14.37 %

Instant tax receipt
AUM (Cr)

₹3,508

NAV

41.74

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.87 13.28 14.19 %

Instant tax receipt
AUM (Cr)

₹7,258

NAV

155.85

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.42 13.28 14.03 %

Instant tax receipt
AUM (Cr)

₹235

NAV

50.18

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.23 14.85 13.96 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

72.33

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.68 15.84 15.41 %

AUM (Cr)

₹3,256

NAV

71.47

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.4 16.29 15.25 %

AUM (Cr)

₹426

NAV

68.96

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.61 13.53 14.45 %

AUM (Cr)

₹4,390

NAV

69.25

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.55 14.76 14.37 %

AUM (Cr)

₹3,508

NAV

41.74

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.87 13.28 14.19 %

AUM (Cr)

₹7,258

NAV

155.85

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.42 13.28 14.03 %

AUM (Cr)

₹235

NAV

50.18

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.23 14.85 13.96 %

AUM (Cr)

₹104

NAV

56.36

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.33 14.52 13.71 %

AUM (Cr)

₹13,106

NAV

82.18

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.95 12.69 13.15 %

AUM (Cr)

₹826

NAV

29.51

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.14 12.49 12.38 %

AUM (Cr)

₹10,554

NAV

116.73

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

AUM (Cr)

₹5,482

NAV

82.51

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.42 12.78 14.99 %

AUM (Cr)

₹35,798

NAV

77.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.36 14.86 14.73 %

AUM (Cr)

₹2,211

NAV

63.29

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 26.44 21.21 20.24 %

AUM (Cr)

₹6

NAV

10.46

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.5 15.5 %

AUM (Cr)

₹1,006

NAV

73.97

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.7 14.46 14.85 %

AUM (Cr)

₹13,589

NAV

69.68

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.71 13.49 13.43 %

AUM (Cr)

₹1,093

NAV

53.55

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.88 12.65 12.58 %

AUM (Cr)

₹522

NAV

57.89

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.7 11.8 11.71 %

AUM (Cr)

₹215

NAV

94.78

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 7.99 8.41 8.51 %

AUM (Cr)

₹831

NAV

40.66

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.16 7.95 7.7 %

AUM (Cr)

₹485

NAV

38.29

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.84 7.98 7.5 %

AUM (Cr)

₹74

NAV

40.92

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.65 7.39 7.2 %

AUM (Cr)

₹120

NAV

29.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.14 7.08 7.19 %

AUM (Cr)

₹198

NAV

46.97

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.08 7.41 7.12 %

AUM (Cr)

₹19,241

NAV

49.71

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.62 7.3 7.03 %

AUM (Cr)

₹7,343

NAV

32.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.18 7.07 7.01 %

AUM (Cr)

₹90

NAV

38.65

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.5 7.4 7 %

AUM (Cr)

₹1,064

NAV

46.54

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.1 7.29 6.97 %

AUM (Cr)

₹892

NAV

98.7

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.66 15.94 15.51 %

AUM (Cr)

₹363

NAV

48.12

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.38 11.02 10.74 %

AUM (Cr)

₹492

NAV

103.74

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.38 10.02 10.23 %

AUM (Cr)

₹5,491

NAV

39.97

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.54 9.92 10.23 %

AUM (Cr)

₹65

NAV

60.34

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.88 9.71 10.22 %

AUM (Cr)

₹22,609

NAV

72.85

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.14 9.83 10.07 %

AUM (Cr)

₹279

NAV

31.47

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.33 9.38 9.96 %

AUM (Cr)

₹7,725

NAV

110.28

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.88 10.03 9.95 %

AUM (Cr)

₹820

NAV

39.21

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.32 9.98 9.9 %

AUM (Cr)

₹1,939

NAV

43.63

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.92 9.7 9.79 %

AUM (Cr)

₹1,321

NAV

81.46

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.97 13.18 14.01 %

AUM (Cr)

₹7,241

NAV

155.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.64 13.26 13.96 %

AUM (Cr)

₹2,935

NAV

69.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.82 12.75 13.39 %

View More

However, before investing through SIP in mutual funds it is important to know what is SIP?. Systematic Investment Plan (SIP) is a process/method through which  you can invest in mutual funds. SIP offers a planned approach to investment wherein the investors can invest a specific amount of money per month at the predetermined date.

Further in this article, we will elaborately discuss the top 5 reasons why you should consider investing through SIP for higher returns.

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 5 Years 7 Years 10 Years
High Growth Fund Axis Max Life
Rating
28.6% 21.1%
17.8%
View Plan
India Consumption Fund Tata AIA Life
Rating
26.44% 21.21%
20.24%
View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz
Rating
20.42% 12.78%
14.99%
View Plan
Opportunities Fund HDFC Life
Rating
21.36% 14.86%
14.73%
View Plan
Pension India Consumption Fund ICICI Prudential Life
Rating
20.5% -
15.5%
View Plan
Multiplier Birla Sun Life
Rating
22.2% 14.74%
15.75%
View Plan
Virtue II PNB MetLife
Rating
20.4% 16.29%
15.25%
View Plan
Growth Plus Fund Canara HSBC Life
Rating
15.46% 10.38%
11.08%
View Plan
Balanced Fund LIC India
Rating
10.91% -
-
View Plan
Equity Fund SBI Life
Rating
16.9% 11.92%
12.05%
View Plan
Fund rating powered by
Last updated: Aug 2025
Compare more funds

  Returns
Fund Name 3 Years 5 Years 10 Years
Active Fund QUANT 23.92% 31.48%
21.87%
Flexi Cap Fund PARAG PARIKH 20.69% 26.41%
19.28%
Large and Mid-Cap Fund EDELWEISS 22.34% 24.29%
17.94%
Equity Opportunities Fund KOTAK 24.64% 25.01%
19.45%
Large and Midcap Fund MIRAE ASSET 19.74% 24.32%
22.50%
Flexi Cap Fund PGIM INDIA 14.75% 23.39%
-
Flexi Cap Fund DSP 18.41% 22.33%
16.91%
Emerging Equities Fund CANARA ROBECO 20.05% 21.80%
15.92%
Focused fund SUNDARAM 18.27% 18.22%
16.55%

Last updated: August 2025

Compare more funds

Buying the Dip Results in Higher ReturnsBuying the Dip Results in Higher Returns

  1. Financial Discipline

    Most of the investors prefer investing through SIP Investment because of the benefit of maximizing profit. However, besides the advantage of wealth creation, the most important perk of investing through systematic investment plan is that it inculcates the habit of financial discipline in the investor’s life. With SIP, the investors are destined to invest a specific sum of money at a predetermined date regardless of the market conditions. As the amount of investment is auto-debited from the investor’s account, it simultaneously reduces the chance of missing out on investment . SIP  helps the investor in  creatinga financial backup by investing a small sum of money over a long period.

  2. Achieve Financial Objective

    To achieve the financial goals of life, it is significant to have smart financial planning. Whether one wants to make a short-term or long-term investment, SIP is a goal-oriented process of investment. The investors can start SIP by making a minimum monthly investment of Rs.500 and can invest up to the maximum as much as they want in any of the best sip plans. By making a small investment over a long-term period you can achieve your  financial goals in the expected time. Besides this, there are a lot of open-ended funds that offer liquidity. This allows the investors to withdraw their investment in case of an emergency.

  3. Offers the Benefit of Power of Compounding

    Through the benefit, of the power of compounding the investors can gain interest by reinvesting the interest earned. In the power of compounding the first investment made by the investors and the gained interest in it is used to earn the interest for the next period. One can also take the help of the SIP Calculator  to estimate the maximum return on investment. Therefore, the benefit of the power of compounding helps the investors to turn small investments into a large corpus. Hence, the early an individual starts making SIP investment, the larger wealth they can accumulate over a long-term period.

  4. Don’t Need to Time the Market

    Mostly, the market experts advise the investors, to invest when the market performs well. However, in the case of SIP, the investors do not need to worry about the timing of the market. Most of the investors often invest in stocks when the price is low and sell them when the price is high. Thus, timing the market is not only time consuming but also riskier. On contrary to this, by the advantage of rupee cost averaging one just need to invest a pre-determined amount continuously for a longer period. Since the amount invested by an individual is constant one can buy more units when the price is low and lesser units when the price is high which in result will lower the average cost.

    start-an-sip-today-watch-your-money-grow start-an-sip-today-watch-your-money-grow
    *All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
  5. Diversifies the Investment

    Investors who want to do smart financial planning should not keep all the eggs in the same basket. As per the market experts, the investors should allocate their money in diversified asset classes instead of putting all the money into one asset. The process of putting your money in different asset classes is known as diversification. By diversifying the investment and allocating the money in different investment securities reduces the risk of fluctuation in returns.  SIP offers the advantage of diversification. With the minimum investment of Rs.500, the investors get a bigger exposure to investing in different investment securities as per their suitability and requirement. It helps to reduce market risk and increases the chance of wealth creation.

    Once you are aware of the above information you can start your SIP investment.

SIP Calculator

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
Years
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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
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
High Growth Fund
17.8%
High Growth Fund
India Consumption Fund
20.24%
India Consumption Fund
Accelerator Mid-Cap Fund II
14.99%
Accelerator Mid-Cap Fund II
Global Equity Index Funds Strategy
15.24%
Global Equity Index Funds Strategy
Pension India Consumption Fund
15.5%
Pension India Consumption Fund
Multiplier
15.75%
Multiplier
Virtue II
15.25%
Virtue II
Growth Plus Fund
11.08%
Growth Plus Fund
Accelerator Fund
13.96%
Accelerator Fund
Pension Dynamic Equity Fund
11.46%
Pension Dynamic Equity Fund
Frontline Equity Fund
14.37%
Frontline Equity Fund
Equity Pension
12.56%
Equity Pension
Equity Top 250 Fund
11.71%
Equity Top 250 Fund
Growth Opportunities Plus Fund
14.85%
Growth Opportunities Plus Fund
Future Apex Fund
13.71%
Future Apex Fund
US Equity Fund
13.87%
US Equity Fund

How to Start SIP Investment?

Listed below are three simple steps to help you understand how to start SIP investment online:

  • Keep all the documents handy i.e. Address proof, PAN Card, Cheque book, Passport size photo

  • To start your SIP investment, another important step is to get your KYC done

  • Once your KYC is done you can register online through the fund house website and look for Register online or New Investor link

Once you get your KYC done you can invest in different funds by logging onto the website of the fund house with your username and password.

Wrapping it Up!

If you stay committed and invest regularly through SIP, then you will be able to achieve your short-term and long-term financial goals easily. With a systematic approach and flexibility of investment, SIP helps investors to achieve maximum ROI with minimum risk involved.  However, to gain maximum profit through SIP investment, it is also very important to have a proper understanding of the market and be aware of the funds' past performance.

SIP Hub

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. 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.
*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.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++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.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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