5 Types of SIPs Explained

Not all SIPs are created equal. Depending on your income stability and market strategy, you can choose a SIP that fits your unique needs.

1. Regular SIP

The classic. A fixed amount is deducted from your bank account on a fixed date every month for a fixed tenure (e.g., ₹5,000 every 5th of the month for 5 years).

2. Perpetual SIP

Exactly like a Regular SIP, but with no end date. It continues indefinitely until you explicitly send a stop instruction to the fund house.

3. Step-Up / Top-Up SIP

Your investment amount automatically increases by a fixed percentage (e.g., 10%) every year. Best for salaried employees.

4. Flexi SIP

Allows you to change your monthly installment amount based on your cash flow. Ideal for freelancers and business owners in India.

5. Trigger SIP

Invests only when a certain market condition is met (e.g., Nifty 50 drops by 2%). Best for tactical investors trying to buy the dip.