What are the different types of mutual fund SIPs?

1. Top-up SIP–First instalment is fixed, and incremental amount and frequency of the increment is pre-decided, so investment amount automatically increases at regular intervals.

2. Flexi SIP-First instalment is fixed by the investor and the subsequent instalments are calculated as per a formula to invest more when markets are low and less when markets are high.

3. Perpetual SIP–There is no end date, however, the investor has the option to redeem the fund at a time of his choice.


4. Multi SIP - Facilitates investing in multiple schemes of a fund house through a single instrument and is a great way to build a diversified portfolio in an easy manner.

5. SIP with cover - A bundle of free life cover along with regular disciplined investment.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)