Types of SIP Plans

In today’s age, it is very important to have proper financial planning to create a financial cushion to achieve your short and long-term objectives. However, achieving ultimate financial goals can become easier if you make the right investment choice and choose investment instruments that can provide higher returns over a long period.

Read more
Best Investment Plans
  • Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • ₹ 1 Crore

    Invest 10k Per Month*
  • Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top Performing SIP's with Zero Commission
Invest ₹10k/month & Get Rs 1 Cr Tax free*
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated
58.9 million
Registered Consumers
26.4 million

A proper investment planning requires discipline and regularity in investment so that the volatility of the market can be neutralized.

As people are becoming smarter in regard to the right investment options, there are a plethora of investment instruments available in the market. One of the most common and disciplined investment options to invest in is SIP plans.

In very simple terms, SIP can be described as a method of investing money in a specific mutual fund scheme on a predetermined date per month. SIP helps to create a strong portfolio over a longer period so that the amount invested by you can reap higher returns in the long run.

SIPs are open-ended funds which provide the option to invest and withdraw money anytime. Apart from this, there are many other benefits of investing in SIP. Let’s take a look at them.

  • Investing in SIP introduces discipline. In SIP, a fixed amount is deducted from your account every month and is invested in the fund of your choice.
  • When is the right time to invest in mutual funds? This confused a lot of people. However, making investments through SIP solves this problem as it is a periodic investment which works across the market
  • Another benefit of investing in SIP is ‘rupee cost averaging’. The investment made by you in SIP is averaged out; you tend to receive fewer units if the market is high and more units if the market is low.

Thus, it protects your investments from market volatility without worrying about the right time to invest.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

How to invest in SIP?

Before discussing the types of SIP, first let’s discuss how to invest in sip:

  • You can start investing in SIP with a minimum amount of Rs.500. Moreover, investing in SIP plans is hassle-free and simple.
  • If you start investing in SIP early and for a longer tenure, then you can avail of the ‘power of compounding’. Through it, you can earn interest on the amount you invest. The interest so obtained gets accumulated and compounded over some time.
    • Here is an outline of the SIP procedure: Complete the KYC Process
    • Submit all the necessary documents such as passport, PAN card, Address proof, cheque book
    • Begin the KYC Process
    • Complete the in-person verification
    • Register for your SIP
    • Select the SIP fund house
    • Select the amount
    • SIP will start after a month of completing the process

Types of SIPs

Besides this, it may be surprising for you to know that there are four different types of SIP plans available in the market. Let’s take a look at it.

Top-Up SIP

Top-up SIP plans allow investors to increase the SIP amount at regular intervals. These plans provide an advantage to invest in mutual fund schemes that are performing well in the market. Moreover, by increasing the investment amount at regular intervals, you can accumulate a huge corpus to achieve your financial goals.

Perpetual SIP

In Perpetual SIP, the investors can invest periodically in a mutual fund scheme of their own choice every month for a pre-determined tenure. While signing up the SIP mandate, the investors have a choice not to enter the end date in the SIP mandate.

If the column is blank, it is considered to be a perpetual SIP. This provides an option for the investors to redeem the fund at the time of closing and achieve the financial goal. As SIP is specifically designed to instill the habit of financial discipline and promote a goal-based approach, it is always advised to start SIP for a fixed period. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Flexible SIP

This is a type of SIP plan that provides an option to decrease or increase the SIP amount according to your cash flow. So, in case, if you face any type of cash crunch due to any reason then you can skip paying a few installments of SIP till your financial situation normalizes.

Similarly, you can also increase the SIP amount in case you receive a bonus or make some gains. While investing in flexible SIP, you will have to stipulate a fixed amount of investments. The plan provides an option to change the investment amount of that month 7 days before your SIP date.  

Trigger SIP

This option is beneficial for those investors who are aware of the market volatility and who have a proper understanding of the financial market. To start this SIP, you can set an index level, event, NAV or a specific date to start this SIP.  

However, it is advised to not opt for trigger SIP as it incites speculations. It is always advisable to choose a long-term tenure to foster your financial goals.

Wrapping it up!

Even though these SIP plans provide the facility of flexibility and convenience to you, your key objective should be to stay invested in SIP for a longer tenure and avoid any short-term financial limitations. Thus, you can achieve your long-term and short-term goals by making a disciplined and smart investment. 

Invest in SIP plans
starting ₹1,000/month

and Grow your wealth to meet
to your financial goals

View plans
Standard T & C Apply*
Smart Investment Pack
100% Capital Guarantee
100% Capital Guarantee
SIP Calculator
  • SIP
  • Lumpsum

Monthly Investment

₹500 ₹1L
Enter Monthly Investment

Total Investment

₹500 ₹10L
Enter Total Investment

Expected Rate of Return (Yearly)

1% 20%
Expected Rate of Return (Yearly)

Time Period

1 Year 30 Years
Enter Time Period
Total Investment
Interest Earned
Maturity Amount

SIP plans articles

Recent Articles
Popular Articles
Top SIP Investment Mistakes You Must Avoid

30 Mar 2023

SIP or Systematic Investment Plan is a popular mode of
Read more
Bajaj Allianz SIP

08 Feb 2023

Bajaj Allianz SIP is a great investment plan for an employee
Read more
Kotak SIP Plan

06 Feb 2023

Kotak SIP plan is one of the best ways for new investors to make
Read more
Tata AIA SIP Plan

06 Feb 2023

Tata SIP (Systematic Investment Plan) plan is an efficient way
Read more
Index Fund SIP Calculator

06 Feb 2023

Various investors may not be fully aware that SIP (Systematic
Read more
Best SIP Plans to Invest for 5 Years Investment 2023
SIPs make a great way of investing in mutual funds. It is an excellent investment method to accomplish your short
Read more
Best SIP Plans for 15 Years
Systematic Investment Plans are the new emerging investment options in India gaining huge popularity these days
Read more
SIP Plans for 1,000 Investment Per Month
SIPs are an excellent way for people on a budget to invest in market-linked markets and enjoy high returns. These
Read more
Best SIP to Invest for 10 Years
The Systematic Investment Plan or SIP allows you to choose a mutual fund plan and invest a fixed amount
Read more
Best SIP for Long Term
Under a SIP, you invest a small sum of money at regular intervals in your selected mutual fund scheme. Investment
Read more

Download the Policybazaar app
to manage all your insurance needs.