Types of SIP

Various types or features of SIP

Systematic Investment Plan(SIP) has emerged as the most convenient and popular mode of investing in Mutual Fund Schemes. SIP has certain advantages which benefit investors in long run. It also encourages investors to start with a small amount to build a huge corpus over a period of time to meet their long-term financial needs.


There is a different type of SIP which can suit the varied requirement of an investor. It offers flexibility in terms of Amount, Tenure and periodicity as per the financial condition of the individual investor.

The following are the type of SIP:

1.Normal SIP-

This is the most common type of SIP in which amount, tenure and periodicity are fixed. One cannot change the same afterward. If you want to change it you have to cancel the same and lodge a fresh mandate for SIP.

  1. Step up SIP-

This enables you to increase the amount of SIP at Regular Intervals. When you are sure of increase in your income in near future, this will help you in investing more without going through the hassle of completing fresh formalities for increasing SIP.


This enables you to adjust the amount of your SIP as per the available funds with you. This is suitable when your income is not certain. This gives you the flexibility to either increase or decrease of the amount as per your income.

4.Trigger SIP

This enables you to set the trigger for investment based on happening of certain events like Reaching of Sensex to a certain level, increase in NAV etc. You may choose the date for investment as a trigger point. This helps in taking the advantage of certain happening which is going to positively impact the earnings.

This type of SIP is most suited to experienced and knowledgeable investors.

5.Perpetual SIP-

As the name suggests this type of SIP is for an indefinite period. There is no end date for this type of SIP. When you fill up SIP mandate form you have to leave blank end date column. In that case, MF will assume that your SIP will continue till 2099. This type of SIP enables you to continue investment uninterrupted for an indefinite period till your financial goal is achieved. You may redeem your fund as per your convenience.

6.Pause SIP-

Sometimes there may be financial crises and we may not be able to meet SIP installment. In such eventuality, we may pause the SIP. Once the normalcy in financial position is restored we may again start SIP without going through the hassle of submitting fresh mandate. However one should try to avoid this as this disrupts your goal of wealth creation to achieve your financial needs. It is better to follow financial discipline and maintain buffer funds to meet such eventualities.

Show More

Chalo Niveshak

We are financial Advisor based at Ahmedabad. having a vaste experience of more than 10 years in financial sector. More than 500 families are happily enjoying services provided by us in their financial planning journey. We are also associated with more than 10000 financial advisors accross India and discussing about various needs and problems of investors. so we know how to deal with various objectives of various goals of our investors better than others.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Check Also