Investors' interest in Systematic Investment Plan, which is called SIP in short, has increased rapidly in the last few years. Perhaps you too must be investing in SIP. However, most investors do not know about all the types of SIP. Today we will tell you about 6 types of SIP so that you can choose the right SIP for yourself.

1. Regular SIP

Most investors know about Regular SIP. Through Regular SIP, you invest a fixed amount every month. You can choose to invest this amount every month, two months, three months, or half-yearly basis as per your convenience. Regular SIP is very popular among investors because the amount, date, and period of investment in it are already fixed.

2. Perpetual SIP

There is no fixed period of investment in Perpetual SIP, it is also called continuous SIP. For investors who want to invest in SIP for a long time, Perpetual SIP is a good option. In Perpetual SIP, you do not need to renew your SIP from time to time.

3. Flexible SIP

As its name suggests, Flexible SIP is very convenient for investors. Because of this you can reduce or increase the SIP amount according to your budget and needs. For example, investors can invest less amount when the market goes up and more amount when the market goes down. Or suppose you have spent a lot in a month, then you can also reduce your SIP amount. But keep one thing in mind, if you want to increase or decrease your SIP amount in a month, then you have to inform your fund house one week before the date of the SIP deduction.

4. Trigger SIP

Trigger SIP is a good option for those investors who have a deep understanding of the market and want to take advantage of the market fluctuations. In this, investors set pre-determined triggers based on the market conditions or the performance of the fund. That is, in this SIP, investors can decide when the SIP will be triggered based on money, time, and valuation.

5. Top-up SIP

Top-up SIP is also called Step-up SIP. In this SIP, investors can increase their SIP investment after a certain period. Just like your salary increases every year, similarly, if you want, you can increase your SIP amount on an annual basis. Under this SIP, you can increase your investment amount by 5 percent or 10 percent annually or at any rate you want. In this way, the investment amount keeps increasing automatically every year.

6. SIP with Insurance

In this SIP, investors get insurance coverage along with investment. That is, by investing in it, you will also get term insurance coverage. Under this SIP, many mutual fund houses provide insurance cover to investors up to 10 times the amount of their first SIP. The insurance coverage increases with time. But note that this facility is available only in equity mutual funds.

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