Types of SIP Investment Offered by Mutual Funds in India

A Systematic Investment Plan (SIP) is one of the most popular and disciplined ways to invest in mutual funds in India. SIP allows investors to invest a fixed amount at regular intervals—usually monthly—helping them benefit from rupee cost averaging and long-term compounding.

Over time, mutual fund houses in India have introduced multiple SIP variants to suit different income patterns, risk profiles, and investment goals. Below are the major types of SIP investments offered by mutual funds in India.

1. Regular SIP

A Regular SIP is the most basic and widely used SIP option. Investors invest a fixed amount at predefined intervals such as monthly or quarterly.

• Fixed investment amount
• Runs for a chosen tenure or until stopped
• Encourages disciplined long-term investing

Best for: Beginners and long-term investors.

2. Top-Up SIP / Step-Up SIP

A Top-Up SIP allows investors to increase their SIP amount periodically—usually annually— in line with income growth.

• Automatic SIP amount increase
• Helps beat inflation
• Enhances long-term corpus

Best for: Salaried investors expecting regular income hikes.

3. Flexible SIP (Flexi SIP)

Flexible SIP offers the freedom to change the SIP amount depending on cash flow or market conditions.

• Increase, decrease, or pause SIP amounts
• Useful for irregular income

Best for: Freelancers, business owners, and self-employed individuals.

4. Perpetual SIP

A Perpetual SIP has no predefined end date and continues until the investor decides to stop it.

• No maturity date
• Ideal for long-term wealth creation

Best for: Investors focused on lifelong compounding.

5. Trigger SIP

Trigger SIPs execute investments based on predefined market conditions such as index levels or NAV movements.

• Market-linked triggers
• Requires active monitoring

Best for: Experienced investors with market understanding.

6. Multi SIP

Multi SIP allows investors to invest in multiple mutual fund schemes using a single SIP mandate.

• Automatic diversification
• One instruction, multiple funds

Best for: Investors seeking diversification across asset classes.

7. Combo SIP

Combo SIPs invest in two or more asset classes—typically equity and debt—in a predefined ratio.

• Balanced asset allocation
• Lower volatility compared to pure equity SIPs

Best for: Moderate-risk investors.

8. Tenure-Based SIP

Tenure-based SIPs run for a fixed investment period such as 3, 5, or 10 years.

• Goal-oriented investing
• Disciplined savings approach

Best for: Education, home, or retirement goals.

9. Tax-Saving SIP (ELSS SIP)

ELSS SIPs allow investors to claim tax deductions under Section 80C of the Income Tax Act.

• 3-year lock-in period
• Equity-oriented investment
• Potential for higher long-term returns

Best for: Tax-saving and long-term wealth creation.

How to Choose the Right SIP Type?

Conclusion

SIPs in India have evolved into flexible investment tools that cater to diverse investor needs. Choosing the right SIP type based on income stability, risk appetite, and financial goals can significantly improve long-term wealth creation.