SIP forms: Learn about all five of these forms of SIP

SIP forms: Learn about all five of these forms of SIP

SIP forms: Learn about all five of these forms of SIP

Few individuals are aware that SIP comes in a variety of forms. Tell us about the many varieties of SIP and how they operate.

You've probably heard recommendations to create a systematic savings account (SIP) from individuals on a regular basis if you invest. A systematic investment plan is known as SIP. In accordance with this, you make a monthly fixed investment in a mutual fund. Still, relatively few individuals are aware that SIP comes in a variety of forms. Tell us about the many varieties of SIP and how they operate.

1. Consistent SIP

The first is regular SIP, in which you make a monthly set investment. This may be completed on a quarterly, half-yearly, or monthly basis. You are free to choose the date on your own.

2. Increase SIP

You have the option to raise the SIP within a certain time frame when you have this SIP. For instance, you may raise the SIP amount once a year. Assuming you make a monthly SIP contribution of Rs 10,000, you are able to raise it by either 10% or 5% annually, depending on your preference. Your investment immediately increases under this.

3. Adaptable SIP

The number of Flexible SIP, under which you may modify your SIP, follows this. As an example, you may alter the SIP amount. Nevertheless, you will need to notify your fund house about one week before to the SIP deduction date if you choose to take such action.

4- Set off SIP

The most intriguing SIP is this one. This allows you to choose the trigger date for the SIP based on value, time, and money. Conditions may be established for this. For instance, if we discuss pricing, you may stipulate that the trigger SIP would begin when the NAV surpasses Rs 1000. Simultaneously, you may choose that if the NAV falls below Rs. 1000, you should begin contributing a portion of your surplus funds to SIP. In a similar vein, timing and value may also be used to design trigger SIP.

5. SIP backed by insurance

You may also receive term insurance coverage on this SIP. Various fund houses may experience this in various ways. Some of them provide insurance coverage that multiplies the initial SIP amount by up to ten times, with further increases. There is a maximum of Rs 50 lakh on this function, which is exclusive to equities mutual funds.