Dynamic SIP (Market-Linked SIP)

Dynamic SIP takes the emotion out of investing by using algorithms to decide exactly how much you should invest this month based on whether the market is overvalued or undervalued.

How Does it Work?

A Dynamic SIP looks at market metrics (like the P/E ratio of the Nifty 50). If the P/E ratio is high (the market is expensive), the Dynamic SIP automatically reduces your investment amount. If the P/E ratio is low (the market is cheap), it increases your investment amount to buy more units.

This is often offered by platforms as a "Smart SIP" feature, providing a hands-off approach to advanced market timing.