There are a Total of 5 Types of SIPs Available; Know Their Related Details and Expertise Before Making an Investment

The Systematic Investment Plan (SIP) is a well-known investment option among people nowadays through which they can get high returns by making small investments. People must know there are not one or two SIPs available, there are a total of five SIPs available, and they should also be aware of their expertise. Below, we have discussed about these SIPs, one must choose the best one for oneself after analysing its various specilities.

How many types of SIP are available?

Nowadays, a Systematic Investment Plan (SIP) is becoming the top choice among people. People are investing thousands of their money in SIP. Usually, people assume this method is the most secure to invest in mutual funds. If one invests in SIP consistently for a long period, it leads to a high outcome.

1. Regular SIP

In a Regular SIP, you invest the same fixed amount on a fixed date every time (like monthly). Even though the amount doesn’t change, it’s still a good way to invest regularly and build wealth over time.

2. Flexible SIP

A Flexible SIP is good for people whose income is not steady. If your income changes every month, you can also change the amount you invest. This gives you the freedom to invest more when you earn more and less when your income is lower.

3. Step-up SIP

A Step-up SIP means you increase your investment amount over time—usually by 10% every year. It’s ideal for people who are working and expect their salary to grow so they can slowly invest more as they earn more.

4. Trigger SIP

A Trigger SIP is for those who understand the stock market well. In this SIP, you set certain conditions or “triggers”—like if the market falls or rises to a certain level, then your investment will happen. If you’re not familiar with the market, it’s better to avoid this type.

5. SIP with Insurance

There is a type of SIP that also gives you insurance coverage. Yes, you can get insurance along with your investment through this special SIP. It’s a way to enjoy both saving and protection at the same time.

Note: This is based on general information. We can only inform you about the distinct types of SIPs and their specilities. What SIP to choose is completely your decision.