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 |
| Axis Max Life |
28.6% |
21.1% |
|
| Tata AIA Life |
26.65% |
20.83% |
|
| Bajaj Allianz |
20.38% |
12.4% |
|
| HDFC Life |
21.72% |
14.49% |
|
| ICICI Prudential Life |
20.06% |
13% |
|
| Birla Sun Life |
22.25% |
14.42% |
|
| PNB MetLife |
20.99% |
16.04% |
|
| Canara HSBC Life |
16.71% |
9.95% |
|
| LIC India |
10.6% |
- |
|
| SBI Life |
16.87% |
11.68% |
|
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
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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.
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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.
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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.
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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.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
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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
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
17.8%
High Growth Fund
20.1%
India Consumption Fund
14.97%
Accelerator Mid-Cap Fund II
14.67%
Opportunities Fund
12.83%
Opportunities Fund
15.78%
Multiplier
15.13%
Virtue II
10.99%
Equity II Fund
13.98%
Accelerator Fund
11.55%
Pension Dynamic Equity Fund
14.42%
Frontline Equity Fund
12.59%
Equity Pension
11.73%
Equity Top 250 Fund
14.9%
Growth Opportunities Plus Fund
13.64%
Future Apex 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:
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Keep all the documents handy i.e. Address proof, PAN Card, Cheque book, Passport size photo
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To start your SIP investment, another important step is to get your KYC done
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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.
