What does a SIP mean and why should you choose it? This blog answers the Whats and the Whys so that you, the investor, are empowered enough to make a healthy investment decision. Let’s start off by understanding SIPs.
November 7, 2024
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You must have come across SIPs and Mutual Funds as inseparable Siamese twins in every news article, investment blog, or press release. But what does a SIP mean? And why should you choose it?
This blog answers the Whats and the Whys so that you, the investor, are empowered enough to make a healthy investment decision. Let’s start off by understanding SIPs.
What Is A Systematic Investment Plan (SIP)?
Investing through a Systematic Investment Plan (SIP) means that you invest a small, fixed amount of money in regular intervals over a fixed duration of time instead of investing a lump sum. There are 5 types of SIPs:
Top-up SIP: Allows you to invest a higher amount after a fixed duration of time.
Flexi SIP: Allows you to increase or decrease the SIP amount based on your needs.
Perpetual SIP: Allows you to invest in perpetuity (till 2099), that is, without an end date.
Trigger SIP: Allows you to set an investment trigger. The trigger, in this case, could be a specific NAV value, date, index level, etc.
Super SIP: A unique feature only available on the Cube Wealth app. Allows you to adjust your SIP amount and even skip payments when you don't have funds.
Benefits Of Investing In Mutual Funds Through SIPs
SIPs offer the unique advantage of investing in Mutual Funds in a regular and affordable way. Here are the benefits:
The magic of compounding
Financial discipline
Risk based investment options
Low minimum investment amount
As the investor, you can choose when to receive the returns either at fixed intervals or towards the end of the SIP’s tenure. Before investing in SIPs, it is a good practice to identify your risk level and set a plan accordingly.
Best Mutual Funds To Invest In Through SIPs Now
All Mutual Funds in the Cube Wealth app are curated by our advisory partner, Wealth First. WF has made it easy for Cube users to select from and invest in the best Mutual Funds at any given point in time. WF has a track record of beating the average mutual fund by 50%. They have over 3,000 clients and an AUM of ₹7,000+ Crores.
Liquid
Short Term
Long Term
International
Nippon India Liquid Fund
IDFC Banking & PSU Debt Fund
Mirae Asset Tax Saver Fund
Edelweiss Greater China Equity Off-shore Fund
Axis Liquid Fund
Axis Banking and PSU Debt Fund
Axis Small Cap Fund
Franklin India Feeder - Franklin U.S. Opportunities Fund
PGIM India Insta Cash Fund
IDFC Dynamic Bond Fund
Canara Robeco Emerging Equities Fund
Invesco Pan European Equity Fund
Note: While we update our blogs regularly we recommend you see the latest data on the best mutual funds on the Cube Wealth App.
How Can Cube Wealth Help?
With the QuickSIP feature, Cube has made it easy and efficient for new investors to begin their Mutual Funds journey in a disciplined and pocket-friendly way.
What’s more, Cube saves you the time and effort to choose from over 17,000 Mutual Funds. There's a curated list of mutual funds especially for you. Explore it now!
Summary
Investing in Mutual Funds through Systematic Investment Plans (SIPs) is the best way to reduce risk, become a disciplined investor and create wealth for the long term.
Always consult a wealth coach before investing in Mutual Funds. A good Wealth Coach can help you identify your appetite for risk and select the best SIP plan that satisfies your investment goals.
The Cube Wealth app’s QuickSIP feature allows you to pick a Mutual Fund SIP based on your risk level. Download the app today to learn more.
If you are still unsure about how to get started with SIPs or if it is right for you, SPEAK TO OUR WEALTH COACHES today.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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