What Are the Different Types of SIPs?
Systematic Investment Plans, or SIPs, are among the most popular ways of investing in mutual funds. They allow an investor to invest a fixed sum of money at regular periods, hence facilitating wealth creation in the long run through smaller but periodic capital investments. There are various types of SIPs that respond to different financial goals and investor preferences. The following is a simplified explanation of the various types of SIP that exist. Regular SIP The most basic variety is a Regular SIP. Here, investors commit a fixed amount, which they invest periodically, every month or three months. This investment method will be ideal for investors who want to be very disciplined in their investment approach. Through constant investment, one can take advantage of the market's ups and downs to increase the growth prospect of the investment with time. Top-up SIP The Top-up SIP feature allows an investor to periodically increase the investment amount. For example, one who starts