SIP - Systematic Investment Plan
A Systematic Investment Plan (SIP) is a smart and convenient way to invest in mutual funds. It allows you to invest a fixed amount regularly and build wealth in the long term with the power of compounding and rupee cost averaging.
Best SIP Investment Plans in 2025
Discover the best investment options in mutual funds and insurance companies to make a regular SIP investment
| Fund Name | 5 Years | 7 Years | 10 Years |
|---|---|---|---|
High Growth Fund Max Life Rating: | 27.23% | 22.02% | 18.4% |
Top 200 Fund Tata AIA Rating: | 30.82% | 22.55% | 17.46% |
Accelerator Mid-Cap Fund II Bajaj Allianz Rating: | 23.62% | 13.69% | 14.74% |
What is a SIP Investment?
SIP or a Systematic Investment Plan, is a simple and convenient way to grow your wealth by investing regularly in mutual funds. It lets you invest small amounts at fixed intervals, helping you build a habit of saving. You buy units of the mutual fund at different prices, which helps reduce the risk of losing money and grows your money with the power of compounding.
A SIP investment is a smart and easy way to invest for long-term goals like retirement or children's education. SIPs are still popular today because they are affordable, simple to start, and can help grow your wealth over the years.
Illustration of Benefits of SIP Investment Plan
If you invest ₹5,000 monthly for 10 years in different investment options:
| Investment Option | Expected Return | Total Invested | Maturity Amount | Wealth Gained |
|---|---|---|---|---|
| SIP | 15% | ₹6,00,000 | ₹13,15,000 | ₹7,15,000 |
| Recurring Deposit | 6% | ₹6,00,000 | ₹8,16,000 | ₹2,16,000 |
| PPF | 7.1% | ₹6,00,000 | ₹8,92,049 | ₹2,92,049 |
How Does a SIP Investment Plan Work?
Learn the workings of a systematic investment plan to make better decisions
Choose the best SIP plan that aligns with your financial goals and risk tolerance by comparing past performance and fund objectives.
Decide how much to invest and whether to contribute monthly, quarterly, or yearly to your chosen SIP investment plan.
Fill in required details and complete payment to invest in your chosen fund successfully with automated deductions.
Fund manager invests your money in various assets according to the fund objective of your chosen investment plan.
On scheduled dates, your SIP amount is deducted and used to purchase units at current Net Asset Value (NAV).
Your SIP investments grow over time and you can adjust contributions anytime as per your investment strategy.
Key Features of SIP Investment Plans
SIP encourages regular, automatic contributions to build wealth over time through systematic investing.
Helps reduce overall risk and maximize returns by investing in a mix of equity, debt, and money market instruments.
Start investing in SIP plans with as little as ₹500 per month, making it accessible to all investors.
Customize your SIP by adjusting investment amount, payment frequency, and tenure as per your goals.
Invest the same amount at different market conditions, averaging out costs over time and reducing volatility impact.
Earlier and longer investments lead to significant growth through compounding by reinvesting returns.
Types of SIP Investment in India
Choose the SIP type that suits your investment style and financial goals
Fixed amount invested at regular intervals for consistent investing.
- Fixed monthly amount
- Automated investment
Increase SIP amount periodically in line with salary growth.
- Annual increment
- Higher wealth creation
Vary investment amount based on changing financial circumstances.
- Variable amounts
- Skip installments
Designed for specific financial goals like education or home purchase.
- Specific milestones
- Disciplined savings
Top 7 Benefits of SIP Investment Plans in 2025
Start a SIP with just ₹500, with no upper limit on contributions, making it accessible to all.
SIP plans leverage compounding for substantial long-term investment growth and wealth creation.
SIP investment fosters discipline through regular fixed investments and automated savings.
SIP plans provide quick access to funds through Systematic Withdrawal Plans during emergencies.
SIP plans diversify investments across equities and bonds for reduced risk and better returns.
Automate your investment plan with standing instructions for hassle-free regular investing.
Add extra money to your SIP investments or choose Step-Up SIP to achieve higher returns.
SIP vs Other Investment Options
Compare SIP with other popular investment options
| Feature | Mutual Fund SIP | Fixed Deposit | PPF |
|---|---|---|---|
| Returns | Market-linked; variable, potentially higher | Fixed, pre-determined | Fixed, government-set (7.1%) |
| Risk | Moderate to High | Very Low | Very Low, government-backed |
| Investment Amount | Min ₹500/month; No upper limit | Min ₹1,000; No upper limit | Min ₹500/year; Max ₹1.5L/year |
| Liquidity | High; redeem anytime | High; premature withdrawal allowed | Low; partial withdrawal after 5 years |
| Tax Benefits | ELSS funds: Sec 80C up to ₹1.5L | Interest taxable; no Sec 80C benefit | EEE: Tax-free up to ₹1.5L/year |
Documents Required for SIP Investment
- PAN Card
- Passport
- Aadhar Card
- Account Number
- Branch Name
- IFSC Code
- Driving License
- Voter ID Card
- Utility Bills
Interactive SIP Calculator
Calculate your potential returns with our easy-to-use SIP calculator
Frequently Asked Questions
Some of the top-performing SIP mutual funds in India include Tata AIA Top 200 Fund, PNB Metlife Virtue II, Birla Sun Life Pure Equity, and Bharti AXA Growth Opportunities Plus Fund. However, the best fund depends on your risk appetite and investment goals.
Yes, SIP investments can incur losses if the value of market-linked funds decreases due to market fluctuations. However, it's important to stay invested for the long term to potentially smooth out these fluctuations and benefit from rupee cost averaging.
You can start investing in a SIP with a minimum amount of ₹500 per month. There is no maximum limit for investment in SIP, making it accessible to investors with different financial capabilities.
SIP investments are considered safer because they spread your money over time, reducing the effect of market volatility. The rupee cost averaging and disciplined approach help create a financial safety net, though market risks still apply.
Yes, you can withdraw your SIP investment anytime. However, consider the lock-in period (if any), exit load of the fund, and tax implications. ELSS funds have a 3-year lock-in period.
Start Your SIP Journey Today
Begin systematic investing from just ₹500/month and build long-term wealth through disciplined investing