How Many Types Of This ‘Sip’ Investment?
SIP Helps You To Start Investing In Small Amounts And Build Wealth In The Long Term. Those Who Do Not Have Proper Knowledge Of Equity Markets And Want To Take Less Risk Can Invest In Mutual Fund SIP. By Investing Regularly, You Can Get Huge Returns in The Long Run. But Now Let Us Know The Complete Details Of How Many Types of SIP Investment There Are And What Are The Benefits Associated With Them.
SIP: A Systematic Investment Plan (SIP) Allows Those Who Cannot Invest A Huge Amount at Once To Invest Some Amount Every Month. Investors Can Invest In Mutual Funds Either In Lump Sum Or Gradually in SIP Mode. You Can Start Investing In Small Amounts And Create Wealth In The Long Run. But This Sip Investment Is Of Many Types. One Can Invest In Equities By Choosing The Mutual Fund Sip Option That Suits Them. Good Wealth Can Be Created In The Long Run. Now Let Us Know How Many Types of SIP Investment There Are.
How many types of SIP investment are there?
Regular SIP:
Regular SIP is The Basic Type Of Systematic Investment Plan. Simple. Investors Invest A Predetermined Amount For A Fixed Period Of Time. Monthly, Bi-monthly, Quarterly, Half-yearly, Yearly Basis Can Be Selected. Daily And Weekly Sips Are Also Available. However, What Most People Choose Is The Monthly SIP Recommended By Financial Experts.
Step-up SIP:
This is Also Known As Step – Up SIP. A Step Up SIP Allows Investors To Increase Their Investments Periodically. That Means Investors Can Increase The SIM Amount Whenever Their Income Increases. This Step Up SIP Helps To Start The SIP With A Small Amount When The Income is Low But To Increase The Investment When The Income Increases.
Flexible SIP:
This Flexible SIP Allows You To Make Your Investments Conveniently. In This, Investors Can Change The Investment Amount According To Their Financial Status And Market Conditions.
Perpetual SIP:
If The Investors Do Not Specify How Long They Want To Continue Their Sip Then It Becomes A Perpetual SIP. The SIP Will Continue Until The Fund House Is Notified To Discontinue The SIP.
Trigger SIP:
This is Suitable Only For Those Who Have A Grasp On Equity Market Movements. In This, Investors Can Invest, Redeem And Switch Based On Market Level, Target Amount Etc.
Multi SIP:
Multi SIP Allows You To Invest In Different Schemes Offered By A Fund House Through A Single SIP. It Helps Investors Diversify Their Investment Portfolio.
