Systematic Investment Plan (SIP) in Mutual Funds

What Is SIP in Mutual Funds?

What Are the Types of SIP Funds?


There are different SIP types available in the money market. These are as follows.

Types of SIP Funds


Regular SIP

It is the simplest method of investing in mutual funds. With a regular SIP, one can invest fixed amounts at regular intervals. In addition, the frequency of this type of SIP can be half-yearly, quarterly, bi-monthly, and monthly.

Top-up SIP or Step-up SIP

A top-up SIP allows investors to increase the SIP amount at regular intervals. Moreover, by increasing the amount of investment, one can park larger amounts and achieve his/her financial goals.

Perpetual SIP

In this scheme, individuals can invest in a mutual fund of their choice without a specified tenure. There is no SIP termination date in such a scheme.

Flexible SIP

In this plan, investors can increase or decrease the investment amount based on their financial standing or the market condition. The benefit of a flexible SIP is that during a cash crunch, one can easily skip paying the SIP instalment amount.

How Does SIP Work?

Benefits of SIP Mutual Funds

Returns from SIP Mutual Funds


Such mutual funds offer considerably higher returns over a period of 5 years. The average rate of return for the best mutual funds with SIP ranges between 20 - 28% over 5 years. Mentioned below are such mutual funds along with their 5 year returns.


Fund Name

Average 5 Years Return

Edelweiss Flexi Cap Fund


Canara Robeco Flexi Cap Fund


UTI Flexi Cap Fund


Parag Parikh Flexi Cap Fund


PGIM India Flexi Cap Fund


Who Should Invest in SIP Mutual Funds?

How to Invest in SIP Mutual Funds?

Different Risk Factors While Investing in SIP Mutual Funds

What Is the Time Period for Investing in SIP Mutual Funds?

Things to Consider While Investing in SIP Mutual Funds

Frequently Asked Questions