Monthly SIP Plan
A Monthly SIP is an easy and disciplined way to invest regularly in
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SIP Insurance Plan Benefits
Start SIP with as low as ₹1000
No hidden charges
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax¶
Disciplined & worry-free investing
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| PNB Metlife |
18.68% |
25.83% |
|
| Birla Sun Life |
17.56% |
21.84% |
|
| Tata AIA |
18.45% |
21.82% |
|
| Bharti AXA |
14.74% |
18.58% |
|
| Bajaj Allianz |
17.34% |
20.53% |
|
| HDFC Standard |
14.77% |
17.79% |
|
| Max Life |
15.5% |
17.5% |
|
| SBI |
14.88% |
16.53% |
|
| ICICI Prudential |
13.23% |
15.89% |
|
| Canara HSBC Oriental Bank |
12.92% |
13.89% |
|
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| Active Fund QUANT |
24.92% |
31.48% |
|
| Flexi Cap Fund PARAG PARIKH |
20.69% |
26.41% |
|
| Large and Mid-Cap Fund EDELWEISS |
22.34% |
24.29% |
|
| Equity Opportunities Fund KOTAK |
24.64% |
25.01% |
|
| Large and Midcap Fund MIRAE ASSET |
19.74% |
24.32% |
|
| Flexi Cap Fund PGIM INDIA |
14.75% |
23.39% |
|
| Flexi Cap Fund DSP |
18.41% |
22.33% |
|
| Emerging Equities Fund CANARA ROBECO |
20.05% |
21.80% |
|
| Focused fund SUNDARAM |
18.27% |
18.22% |
|
What is a Monthly SIP Plan?
Monthly SIP means a Systematic Investment Plan that helps invest a fixed amount of money in a market-linked fund every month. This investment option helps you build wealth over time by spreading out your investment, making it more affordable and reducing risk. You do not need to time the market, as your money is invested regularly, helping you benefit from market ups and downs.
How is a SIP Calculator Useful for a Monthly SIP Plan?
A SIP calculator month wise is useful to estimate the future value of your investments based on factors like investment amount, tenure, and expected return rate. This helps you set realistic financial goals, understand potential returns, and plan your investments effectively.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
19.3%
High Growth Fund
15.61%
Accelerator Mid-Cap Fund II
15.48%
Opportunities Fund
How Does a Monthly SIP Plan Work?
A monthly SIP plan works in the following way:
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Select a Fund: Choose a market-linked fund based on your investment goals.
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Set Amount and Date: Decide how much to invest monthly and pick a date for automatic deductions.
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Invest Regularly: Each month, your money is used to buy units of the fund, with more units bought when prices are low and fewer when high.
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Grow Wealth: Over time, this rupee-cost averaging strategy helps to reduce risk and steadily build your wealth through market fluctuations.
What are the Benefits of a Monthly SIP Plan?
The key benefits of a monthly SIP plan are as follows:
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Disciplined Investing: SIPs promote regular savings by encouraging investors to commit a fixed amount monthly.
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Rupee Cost Averaging: Investing monthly in an SIP plan helps average out the cost of purchases, reducing the impact of market volatility.
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Power of Compounding: Regular investments benefit from compounding, allowing your returns to generate additional returns over time.
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No Need to Time the Market: SIPs eliminate the stress of trying to time the market, as investments occur automatically over time.
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Budget-Friendly: A monthly SIP plan allows you to start investing in small amounts, making it accessible for everyone.
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Flexibility: You can easily adjust the amount or frequency of your SIP contributions according to your financial situation.
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Convenient & Automated: SIPs can be set up for automatic deductions, making investing hassle-free.
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Diversified Risk: Investing through SIPs in market-linked funds spreads risk across various assets, enhancing safety.
What are the Factors to Consider Before Starting a Monthly SIP Plan?
Consider the following factors before choosing best SIP plan for monthly contributions:
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Investment Goals: Define your financial objectives, such as saving for retirement, buying a home, or funding education, to choose appropriate SIP products.
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Risk Tolerance: Assess your comfort level with risk to select market-linked ULIP or mutual funds that align with your ability to handle market fluctuations.
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Time Horizon: Consider how long you plan to invest, as longer horizons can typically accommodate higher-risk investments.
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Fund Performance: Research the historical performance of the market-linked funds you are considering, keeping in mind that past performance is not always indicative of future results.
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Expense Ratios: Look at the fees associated with the market-linked funds, as lower expense ratios can lead to higher net returns over time.
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Fund Manager's Track Record: Evaluate the experience and performance of the fund manager, as skilled management can significantly impact fund performance.
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Liquidity Needs: Consider your need for liquidity; some investments may have lock-in periods or penalties for early withdrawals.
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Tax Implications: Understand the tax consequences of your SIP investments, as different funds may have different tax treatments.
How to Start a Monthly SIP?
You can follow the steps mentioned below to start investing in a monthly SIP plan:
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Visit Policybazaar: Go to the form mentioned on this page and fill in the required details.
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Choose Funds for SIP: Compare various investment plans and select the best market-linked fund as per your risk tolerance, financial goals, and investment horizon.
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Set SIP Amount: Enter your desired monthly investment amount.
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Complete KYC and Confirm: Finish the required details to purchase the plan, link your bank account, and confirm to start your SIP.
Monthly SIP vs Daily SIP
| Feature |
Monthly SIP |
Daily SIP |
| Investment Frequency |
Invests once a month |
Invests daily |
| Amount |
Fixed investment amount monthly |
Smaller, more frequent investments |
| Market Timing |
Less sensitive to market fluctuations |
More responsive to daily market changes |
| Average Cost |
Less frequent averaging of costs |
More effective rupee cost averaging |
| Liquidity |
Lower liquidity due to monthly lock-in |
Higher liquidity due to frequent investments |
| Flexibility |
Fixed commitment per month |
Flexible, can adjust daily investments |
| Ideal For |
Investors with a stable monthly income |
Investors seeking to invest surplus cash daily |
| Convenience |
Simple management and fewer transactions |
Requires daily monitoring and management |
Conclusion
A Monthly SIP Plan is a smart, hassle-free way to grow your wealth over time. By investing consistently, you harness the power of compounding and make market volatility work in your favour. It is an easy, disciplined approach to secure your financial future, one step at a time.
FAQs
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Can I invest ₹1000 monthly in SIP?
Yes, you can invest ₹1000 per month in a Systematic Investment Plan (SIP). Many market-linked funds allow this flexibility.
-
Can I invest in SIP for 1 month?
Yes, you can start a SIP for just one month, but it is typically recommended to invest for a longer period to maximize benefits.
-
Is monthly SIP safe?
Monthly SIPs are considered relatively safe, but like all investments in market-linked funds, they carry market risk. Diversification and choosing the right fund can help mitigate this risk.
