Types of SIP Plans

What is a SIP Plan?

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (monthly or quarterly) in mutual funds. It promotes consistent investing, takes away the stress of market timing, and helps you benefit from rupee cost averaging and compounding over time.

Key Features of SIP Plans

SIPs make investing simple, flexible, and rewarding. Here are the main features that make them ideal for investors in 2025:

• Automatic and regular investments: Your money gets invested every month or quarter without manual effort.
• Start small: You can begin your investment journey with as little as ₹100 per month.
• Rupee cost averaging: SIPs help reduce the effect of market ups and downs by buying more units when prices fall and fewer when they rise.
• Flexible options: You can pause, increase, or decrease your SIP anytime based on your needs.
• Long-term wealth creation: Benefit from the power of compounding by staying invested for years.
• Tax-saving benefits: ELSS, ULIP, and new hybrid SIPs in 2025 offer attractive tax deductions under Section 80C.

Types of SIPs

Here is a simple explanation of the main types of SIPs in 2025 and how each one works:

1. Regular SIP

   In a regular SIP, you invest a fixed amount every month or quarter. It’s simple and perfect for people who have a steady income and want to grow their wealth slowly and steadily.

   Expert Tip: A great option for beginners as it helps you build a habit of regular investing.

2. Top-Up (Step-Up) SIP

   In a step-up SIP, you start with a certain amount and increase it every year, usually by 10%. This helps your savings grow faster and keeps up with your increasing income or inflation.

   Expert Tip: Ideal for people whose income grows every year. Increasing your SIP amount regularly can help you reach your goals faster.

3. Flexible SIP

   This SIP gives you the freedom to change, skip, or pause your investments when needed. For example, if you earn extra in a month, you can invest more, or if expenses rise, you can reduce them.

   Expert Tip: Ideal for individuals with irregular income, such as freelancers or small business owners. Try not to skip too often to maintain steady investment growth.

4. Trigger SIP

   A trigger SIP lets you invest more or less based on specific market conditions — like investing more when the market falls. It is useful, but also somewhat risky.

   Expert Tip: Suitable only for experienced investors who understand market trends. Beginners should avoid using it for short-term gains.

5. Perpetual SIP

   This SIP doesn’t have an end date. You can keep investing as long as you want and stop anytime. It is ideal for those who want to stay invested for an extended period.

   Expert Tip: Ideal for long-term investors who want to build wealth without worrying about renewal dates.

6. Multi SIP

   A multi-SIP allows you to invest in several mutual funds at once with smaller amounts. It helps you spread your money across different funds and reduce risk.

   Expert Tip: Use it to diversify your investments across equity, debt, and hybrid funds for a better balance and returns.

7. Insurance-Based SIP (ULIP SIP)

   In this type, part of your money goes into life insurance and the rest into market-linked investments. It provides both protection and growth.

   Expert Tip: Ideal for individuals seeking insurance and investment in a single plan, but be sure to review the charges before investing.

Top SIP Plans to Choose in 2025

You can choose to invest from the following best SIP plans in 2025:

Which is the Right Type of SIP for You?

• If you want easy and steady investing, go with a Regular SIP.
• If you are planning to earn more soon, try a Top-Up SIP to boost your investments each year.
• If you need the freedom to change your investment amount, a Flexible SIP is the best choice.
• If you follow market trends closely, a Trigger SIP might work well for you.
• If you want long-term investing with no end date, choose a Perpetual SIP.
• If you want to diversify without opening many SIPs, a Multi SIP is a good option.
• If you are looking for insurance along with investment, check Insurance SIPs carefully.

Tax Benefits of SIPs in 2025

Certain debt-like funds (post-April 2025) are taxed at slab rates.

How to Invest in SIP?

The general steps to investing in a SIP plan in India are listed below:

• Define Goals: Clarify your financial objectives (e.g., wealth creation, retirement planning).
• Choose Fund: Select a mutual fund based on risk tolerance, investment horizon, and goals (e.g., equity, debt).
• Complete KYC: Ensure your KYC is completed by the mutual fund company.
• Fill out the SIP Form: Complete the SIP application form online or through the distributor.
• Set Auto-debit: Provide bank details for automatic SIP deductions on chosen dates.
• Monitor Regularly: Keep track of SIP performance and review periodically for adjustments.

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

Years

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 29
• 31
• 32
• 33
• 34
• 36
• 37
• 38
• 39
• 40

Expected return Pro Tip

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

% Annually

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 30

Total Wealth ₹1.03 Cr

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

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 29
• 31
• 32
• 33
• 34
• 36
• 37
• 38
• 39
• 40

Expected return Pro Tip

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

% Annually

• 1
• 2
• 3
• 4
• 6
• 7
• 8
• 9
• 11
• 12
• 13
• 14
• 16
• 17
• 18
• 19
• 21
• 22
• 23
• 24
• 26
• 27
• 28
• 30

Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

13%

Equity Pension

15.49%

Global Equity Index Funds Strategy

19.4%

High Growth Fund

13.25%

Opportunities Fund

20.94%

Multi Cap Fund

14.37%

Accelerator Mid-Cap Fund II

15.86%

Multiplier

14.59%

Frontline Equity Fund

18.41%

Pension Mid Cap Fund

11.15%

Equity II Fund

14.82%

US Equity Fund

14.99%

Growth Opportunities Plus Fund

11.77%

Equity Top 250 Fund

14.06%

Future Apex Fund

11.94%

Pension Dynamic Equity Fund

14.42%

Pension Enhanced Equity

Conclusion

SIPs are one of the easiest and smartest ways to build wealth over time. Each type of SIP serves a different purpose, whether you want steady investing, flexibility, or extra benefits like insurance. The key is to choose a SIP that matches your income, goals, and comfort with risk. Start early, stay consistent, and let the power of compounding work for you to make small investments grow into big wealth.