SIP Tips: How many types of SIP are there? Half of India invests in mutual funds without knowing this...

Right SIP for you: Nowadays many people are investing in mutual funds through SIP (Systematic Investment Plan). This is because with SIP you can start investing by depositing a small amount every month and it also gives better returns than other schemes. In the long run, you can accumulate a lot of money through this. But do you know that there are many types of SIP? If you understand which SIP is right for you, then you will never suffer a loss. Many people invest without knowing this, and do not make this mistake.

Types of SIP.

Regular SIP

If you feel that you are not able to save money, then this SIP is for you. In this, you deposit a fixed amount every month on a fixed date. With this, you can gradually create a good fund. You can create a regular SIP with just Rs 500.

Flexible SIP
This SIP is good for those people whose income is not fixed, like freelancers, self-employed or small businessmen. If you earn more, you can deposit more money, if less, you can deposit less. In this, you can change the amount of your SIP according to your income.

Step-up SIP
This SIP is best for those who are employed, whose salary increases every year, or those businessmen whose profits increase every year, they can choose it. In this, you can increase your SIP amount from time to time (eg 10% every year). This accumulates a huge fund in the long run and it also beats inflation. It is very beneficial for goals like buying a house, children's education, or retirement.

SIP with Insurance
If you want to give insurance protection to your family along with depositing money, then you can choose this option. In this, you get the benefit of both investment and insurance. You do not have to pay separate insurance premiums. If the investor dies during SIP, the nominee gets the insurance amount.

Trigger SIP
This is for those investors who understand the ups and downs of the stock market and can take a little risk. In this, you decide in advance that your money should be invested or withdrawn when a specific event occurs in the market (such as the index reaching a certain level). This is a kind of alarm, which warns you to invest or withdraw money at the right time. There can be many types of triggers, such as index level triggers, fixed date triggers, return base triggers, profit booking triggers, etc.

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