7 Different Types of Systematic Investment Plan (SIP) in India

Investing can feel overwhelming, especially if you're just starting out. However, there’s one method that’s easy, flexible, and beginner-friendly — SIP or Systematic Investment Plan. Whether you’re saving for a holiday, a new home, or your child’s education, SIPs help you build wealth gradually.
In this article, we’ll explore the types of SIP available, how they work, and how you can start investing today.
- Table of contents
- What are the different types of SIPs?
- 7 different types of SIP
- Which type of SIP should you select and how?
- How to invest in SIP
What are the different types of SIPs?
SIPs are a way to invest small amounts regularly into mutual funds. But did you know that SIPs are not all the same? There are several different types of SIP in India, and each type offers something unique. Depending on your financial goals, income pattern, and risk appetite, you can choose the SIP that suits you.
Let’s take a closer look at the 7 different types of SIP and how they can help you invest smarter.
7 different types of SIP
1. Regular SIP – The most common and simple SIP
- This is the most basic and widely used SIP.
- You invest a fixed amount regularly (monthly, weekly, or quarterly).
- Suitable for salaried people or those with steady income.
- Helps build disciplined investing habits.
For example, you can set up an SIP of Rs. 2,000 every month, and it will be automatically deducted from your bank account.
2. Top-up SIP – Increase your SIP as your income grows
- Also known as step-up SIP, this allows you to increase your SIP amount at regular intervals.
- Suitable if your income increases over time. You can start small and increase gradually.
- Helps you invest more without feeling a pinch.
For example, you can start with Rs. 2,000 per month and set the top-up rate to 10%. Then every year, your investment amount will increase by 10%.
3. Flexible SIP – Adjust your SIP amount as per your need
- In a flexi SIP, you can increase, decrease, or skip SIP instalments.
- Good for freelancers or people with irregular income.
- Offers more control over your investments.
- You decide how much to invest, depending on your cash flow.
If you earn more this month, you can invest more. If your income is low, you can reduce or even skip that month's SIP.
4. Perpetual SIP – No fixed end date
- Unlike regular SIPs that have a start and end date, a perpetual SIP runs indefinitely.
- No need to specify an end date while starting the SIP.
- You can stop it anytime by giving instructions to your fund house.
- Suitable for long-term investors who want to stay invested without worrying about timelines.
This is helpful if you believe in long-term wealth creation and don’t want to put a stop date on your investments.
5. Trigger SIP – Invest based on specific market events
- Trigger SIP is for slightly advanced investors who want to take action based on specific market events or conditions.
- You can set triggers like market level (Sensex/Nifty), NAV, or a specific date.
- Investment happens automatically when the trigger is met.
- Not ideal for beginners, as it involves market timing.
Example: You can set a trigger to invest only when the NAV of a mutual fund falls below Rs. 100.
6. SIP with insurance – Extra protection along with investment
- This is a unique type of SIP plan that offers life insurance cover along with your mutual fund investment.
- You get life insurance with your SIP.
- The cover usually increases with time.
- Good for those who want basic insurance and investment in one go.
However, this is not a replacement for a full insurance policy. It’s more like an added benefit.
7. Multi SIP – Invest in multiple funds at once
- Multi SIP allows you to invest in different mutual fund schemes through a single SIP.
- You don’t need to set up separate SIPs for each fund.
- Saves time and effort.
- Helps diversify your investment easily.
For example, you can invest Rs. 5,000 every month and split it between 3 different funds.
Read Also: Choti SIP: Start Your investment Journey with Just Rs. 250 SIP
Which type of SIP should you select and how?
Choosing a suitable SIP depends on your personal situation and financial goals.
Here’s a quick guide:
- If you're just starting: Go for regular SIP.
- If your income increases over time: Choose a top-up SIP.
- If you have variable income: Try a flexible SIP.
- If you're a long-term investor: Opt for perpetual SIP.
- If you're experienced with markets: Consider a trigger SIP.
- If you want insurance too: Look into SIP with insurance.
- If you want to diversify: Use multi SIP.
You can also ask yourself the following questions to help you decide:
- How stable is my income?
- What is my investment goal?
- Do I want to invest long-term?
- Am I okay with some risk?
Your answers to these questions will help you decide the best type of systematic investment plan for you.
How to invest in SIP
Starting an SIP is simple. Here’s how to do it in a few steps:
- Pick your goal: Why are you investing? Retirement? Child’s education? A new car?
- Choose a mutual fund: You can take help from a financial advisor or use trusted apps/websites.
- Select the type of SIP: Based on your needs (as explained above).
- Decide the amount: Even a modest amount like Rs. 500 per month is a good start.
- Set the frequency: Monthly is most common, but weekly and quarterly options are also available.
- Submit the form or set it up online: Through a mutual fund house, advisor, or investment platform.
- Track and review regularly: See how your SIP is performing and make changes if needed.
Read Also: SIP Plan for 2 Years Investment: Key Consideration, Benefits, and How to Invest?
Conclusion
SIPs make investing easy, stress-free, and smart. Based on the knowledge of the different types of SIP in India, you can choose the one that suits you. Whether you’re earning a fixed salary or have a fluctuating income, whether you’re investing for a short-term goal or the long haul, there’s a type of SIP plan made just for you. Pick your SIP, start small, and let your money grow over time, because the earlier you start investing, the more time your money has to grow.
FAQs
What is an SIP?
An SIP (Systematic Investment Plan) is a way to invest small amounts regularly in mutual funds. It helps in building wealth over time through consistent investing.
How do SIPs work?
SIPs automatically deduct a fixed amount from your bank account at regular intervals (usually monthly) and invest it in your chosen mutual fund.
Why choose SIP in mutual funds?
SIPs promote disciplined investing, are easy to start, reduce market timing risks, and are ideal for long-term wealth creation.
What type of SIP should you select and how?
Choose based on your income pattern, risk appetite, and financial goals. Regular SIP for beginners, flexible SIP for irregular income, and so on.
Can I increase my SIP amount later?
Yes, some SIPs allow you to change amount. You can use a top-up SIP or manually increase your SIP amount at any time.
What’s the ideal SIP duration?
There’s no fixed duration. Typically, longer durations (5+ years) give better returns due to the power of compounding.
Are SIP returns guaranteed?
No, SIP returns depend on the performance of the mutual fund and market conditions. They are not guaranteed.
Which type of SIP is best?
There’s no one-size-fits-all. The best SIP is the one that matches your financial situation, goals, and comfort level.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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