7 Types Of SIP, Know Which One Will Make You A Millionaire

SIP consider the best option to invest in a mutual fund. Do you know that there are 7 types of SIP? We are going to discuss those 7 types of SIP. The first one is Regular SIP, it is also known as normal SIP. In this, you invest a particular amount on a fixed date every month. It is convenient because you can direct your bank to debit the amount every month. Let’s know about the remaining 6 types.

Step-Up SIP

Step-Up is the simplest form of SIP. With this option, you will get the facility to increase your investment by every passing year, whenever you want. By this, your fund will also increase. According to the experts, people start SIP with thousand but forget to value this amount as time passes. This type offers you to increase your investment and frame your financial plan easily.

Flexi SIP or Smart SIP

Flexi SIP facilitates you to invest when the market is high, and also in low. Facilitate on low because it is a rule to purchase on low and sell on high. That’s why it is known as a Smart Sip.

Trigger SIP

Trigger SIP is based on market events. For example, if there is a down of a few % in Sensex or nifty, then you can invest. Same, if the AUM amount of any fund dropped then you can increase the amount of your SIP. This fund gives you chance to take advantage of the opportunity.

Perpetual SIP

According to its name, it is a SIP without any maturity period and you can invest as long as you want. This SIP is best for young Investors because they invest for the long term.

SIP Insurance

Many mutual fund houses provide free term life insurance to their SIP investors. It is known as SIP Insurance, which works as a top-up for present insurance schemes of investors. Life Insurance Coverage is related to the SIP investment and continues till the investor’s investment.

Multi SIP

It gives you the facility to invest in various schemes of fund house with one instrument and provides tips to design a diversified portfolio. It reduces paperwork for investors, increases trust in investment, and provides the facility to design a financial plan for various financial needs.