SIP for Buying House

Systematic Investment Plan (SIP) is a great way to save money if your goal is to buy a house. By investing a fixed amount every month in mutual funds, you can build a good amount over time. Regular investments and the power of compounding can help you achieve your goal of buying a house faster and more easily.

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SIP Plan Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax
Zero LTCG Tax
Disciplined & worry-free investing
Disciplined & worry-free investing

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 5 Years 7 Years 10 Years
High Growth Fund Max Life
Rating
33.56% 19.72%
16.82%
View Plan
Top 200 Fund Tata AIA
Rating
33.06% 20.69%
16.57%
View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz
Rating
26.11% 11.93%
13.25%
View Plan
Opportunities Fund HDFC Standard
Rating
26.28% 13.34%
13.43%
View Plan
Growth Plus Fund Canara HSBC Oriental Bank
Rating
18.66% 9.86%
9.13%
View Plan
Grow Money Plus Fund Bharti AXA
Rating
23.24% 13.96%
12.71%
View Plan
Multiplier Birla Sun Life
Rating
27.71% 12.46%
14.1%
View Plan
Opportunities Fund ICICI Prudential
Rating
24.94% 12.68%
10.91%
View Plan
Flexi Growth Fund LIC
Rating
- -
-
View Plan
Virtue II PNB Metlife
Rating
23.2% 17.21%
15.2%
View Plan
Fund rating powered by
Last updated: Mar 2025
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  Returns
Fund Name 3 Years 5 Years 10 Years
Active Fund QUANT 23.92% 31.48%
21.87%
Flexi Cap Fund PARAG PARIKH 20.69% 26.41%
19.28%
Large and Mid-Cap Fund EDELWEISS 22.34% 24.29%
17.94%
Equity Opportunities Fund KOTAK 24.64% 25.01%
19.45%
Large and Midcap Fund MIRAE ASSET 19.74% 24.32%
22.50%
Flexi Cap Fund PGIM INDIA 14.75% 23.39%
-
Flexi Cap Fund DSP 18.41% 22.33%
16.91%
Emerging Equities Fund CANARA ROBECO 20.05% 21.80%
15.92%
Focused fund SUNDARAM 18.27% 18.22%
16.55%

Last updated: Feb 2025

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Buying the Dip Results in Higher ReturnsBuying the Dip Results in Higher Returns

What is SIP for Buying House?

A SIP for buying a house allows you to invest a fixed amount regularly in mutual funds to accumulate the necessary funds for purchasing a home. By investing consistently through a Systematic Investment Plan (SIP) over time, you benefit from the power of compounding and market growth. This approach helps you save for a down payment or the full cost of the house, reducing the need for large lump sum investments. It also spreads risk and allows you to invest based on your financial capacity.

SIP Calculator

I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
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Total Wealth ₹22.4 L
View Plans
I want to save
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
High Growth Fund
16.82%
High Growth Fund
Top 200 Fund
16.57%
Top 200 Fund
Accelerator Mid-Cap Fund II
13.25%
Accelerator Mid-Cap Fund II
Opportunities Fund
13.43%
Opportunities Fund
Growth Plus Fund
9.13%
Growth Plus Fund
Accelerator Fund
11.71%
Accelerator Fund
Grow Money Plus Fund
12.71%
Grow Money Plus Fund
Multiplier
14.1%
Multiplier
Equity Top 250 Fund
10.7%
Equity Top 250 Fund
Future Apex Fund
11.43%
Future Apex Fund
Opportunities Fund
10.91%
Opportunities Fund
Frontline Equity Fund
12.95%
Frontline Equity Fund
Virtue II
15.2%
Virtue II
Pension Dynamic Equity Fund
9.52%
Pension Dynamic Equity Fund
Top 300 Fund
11.03%
Top 300 Fund
Blue-Chip Equity Fund
9.19%
Blue-Chip Equity Fund

Cost of Delay Calculator
Start early, gain more
Monthly SIP Amount
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Invest For (in Years)
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If you start SIP after (in Months)
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Due to the delay of 10 Months

Your Target Wealth will reduce by 13.3%.

With loss of ₹13,87,249

Start TodayDelayed Start
Invest Now

How to Start a SIP for Buying House?

Follow the steps mentioned below to start a SIP for buying a house:

  • <pSet Your Goal: Determine the amount you need for the down payment or other housing expenses and set a target timeline.

  • Choose the Right Fund: Select a mutual fund that suits your risk profile—equity funds for higher returns or debt funds for lower risk.

  • Decide the SIP Amount: Based on your goal and timeline, decide how much you can comfortably invest monthly.

  • Select a Fund House: Research and choose a reliable fund house or platform that offers SIP investment options.

  • Complete KYC: Complete your Know Your Customer (KYC) process through the fund house or an investment platform.

  • Start the SIP: Set up the SIP through the chosen platform or fund house, and link it to your bank account for automatic deductions.

Start An Sip Today Watch Your Money Grow Start An Sip Today Watch Your Money Grow

SIP Calculator to Estimate Investment Amount for Buying House

An SIP Calculator helps you estimate how much you need to invest regularly to buy a house in the future. By inserting details like your target amount, expected return, and investment duration, the calculator gives you an idea of how much you need to invest monthly. This tool helps in planning your finances efficiently and ensures that you stay on track to buy your dream house.

  • SIP Calculator for House Fund: Select "I Know My Goal Amount" option in the calculator.

    • House Fund Estimate: â‚ą50,00,000

    • Investment Duration: 15 years

    • Expected Return: 15% annually.

  • SIP Calculator Results: The calculator will show the following results-

    • Monthly Investment Required: â‚ą8,110

    • Total Investment: â‚ą14,60,000

    • Amount Required: â‚ą50,00,000

    • Wealth Gained from SIP: â‚ą35,40,000

Points to Consider Before Investing in SIP for Buying House

Before you start investing in a SIP plan to buy a house, you should consider the following points:

  • Investment Horizon: Plan for a long-term investment (5-10 years) to match your home-buying goal.

  • Amount Required: Estimate the amount you will need for the down payment and other costs of buying a house.

  • Risk Profile: Understand your risk tolerance. Equity SIPs are riskier but have higher potential returns, while debt SIPs are safer.

  • Returns Expectation: Equity SIPs generally provide better returns, but remember, past performance does not guarantee future returns.

  • Liquidity Needs: SIPs are not easy to withdraw quickly. Keep some emergency funds separate from your SIP investments.

  • Tax Benefits: If you invest in ELSS SIPs, you can get tax deductions under Section 80C of the Income Tax Act.

  • Discipline: Stick to a fixed monthly investment. Consistency is important for long-term growth.

  • Market Timing: Don’t try to time the market. Regular investments over time help reduce the impact of market volatility.

  • Inflation Impact: Keep inflation in mind while planning your SIP to ensure your savings grow enough to meet future costs.

Start Small & Build Your Wealth For A Brighter Tomorrow Start Small & Build Your Wealth For A Brighter Tomorrow

Key Benefits of Investing in SIP for Buying House

You get the following key benefits by investing in a SIP for house purchasing:

  • Affordable Investment: SIPs allow you to invest small amounts regularly, making it easier to save for a house over time.

  • Power of Compounding: Regular investments grow through compounding, helping you accumulate a significant corpus for your home.

  • Rupee Cost Averaging: SIPs reduce the impact of market fluctuations by averaging the cost of your investments over time.

  • Tax Savings: ELSS SIPs offer tax benefits under Section 80C, helping you save on taxes while investing for your home.

  • Disciplined Savings: SIPs promote a disciplined approach to saving, ensuring you stay consistent with your investment goals.

  • Flexibility: You can adjust your SIP amount or switch funds according to your financial situation and market conditions.

Conclusion

Using SIP to save for a house is a smart and disciplined approach. By investing regularly in mutual funds, you can accumulate a significant amount over time, while spreading out risk. In 2024, SIPs offer flexibility and the potential for higher returns compared to traditional savings methods. Whether you aim to buy a house in a few years or in the long run, SIP helps you stay on track with your goal.

FAQs

  • What is SIP for buying a house?

    SIP (Systematic Investment Plan) for buying a house is a disciplined investment strategy where you invest a fixed amount regularly in mutual funds. This helps accumulate funds over time for a home purchase.
  • How does SIP help buy a house?

    SIP helps in creating a lump sum amount over time, enabling you to gather the necessary funds for a down payment or full house purchase.
  • What is the minimum SIP amount for buying a house?

    The minimum SIP amount depends on the mutual fund you choose. Generally, it can start from as low as â‚ą500 per month.
  • Is SIP a good option for buying a house?

    Yes, SIP is a good investment option as it offers potential for high returns through equity mutual funds, which helps accumulate funds for a house.
  • How long should I invest in SIP to buy a house?

    Ideally, you should invest in SIP for at least 5-10 years to build a significant corpus for buying a house.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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