How to Customize Your SIP Plan?
Most investors, especially the salaried ones, prefer the monthly SIP investment plan. SIPs help them directly transfer the investment amount to the fund when they receive their monthly income. However, there are some ways you can customize your systematic investment plan through its types: -
Frequency of SIP
You can invest in the mutual funds through SIP on a weekly, fortnightly,quarterly, or half-yearly basis. In case you want to invest for the future without an end date, you can do that as well. You can do this through a Perpetual SIP option.
Under perpetual SIP, you can easily transfer a fixed amount to the mutual fund of your choice for as long as you like. This is a good option for the people who need a large corpus to fulfil a significant financial goal in the distant future.
The Step-Up SIP allows a step-up or an increase in your SIP investment amount on a regular basis. Let us take up an example to understand this a little better. Imagine you start a SIP with Rs. 2000 per month. You can give standing instructions to your bank to step-up your investment amount. If you plan to step-up by Rs. 1000 per year, you will need to invest Rs. 2000 per month in the first year, Rs. 3000 per month in the second year and so on.
The two key benefits of stepping up your SIP investments: -
- You can build a larger corpus
during your tenure.
- You can achieve your financial goal earlier.