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Mutual Fund SIP: Systematic Investment Plan (SIP) in mutual funds is one such way by which good profits can be earned by investing in long term. SIP is a simple system of Fixed Amount Invest in fixed time. With its help, investors can make an investment plan by understanding the risk and profit of the market.
Experts often recommend that if you have extra money, keep it already deposited in SIP. So that it can be used during emergency. At the same time, there is also a top-up SIP under mutual funds, which allows investors to increase the SIP amount. This can be invested annually. This facility is for those who want to increase their investment. It is also known as SIP Booster.
What is the difference between normal SIP and top-up SIP?
Under a normal SIP, investors cannot increase their contribution during their SIP tenure. For higher investments, they need to opt for a new scheme, while Top-up SIP or SIP Booster allows investors to automate their SIP contribution and increase the contribution as the income increases.
How Top-up SIP will work
Top up facility option in mutual funds allows investors to increase their monthly contribution in the ongoing SIP. Understand by example, if an investor is contributing 10 thousand rupees every month under mutual funds and wants to invest more than this, then he has the option of SIP topup and every calendar year or financial year or every six months. Can add amount at the end of.
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Benefits of Top up SIP
With the help of Top Up SIP, you can achieve your financial goals quickly. For this you will not have to invest much time. This target can be achieved by increasing the investment in the middle of the SIP plan.
With increasing inflation, the value of money keeps going down. A smart way to make the most out of this situation is to increase SIP contribution equal to the inflation rate or more. This helps in fighting inflation.
Top-up SIP works in an auto pilot mode, which means it saves investors the hassle of opening new SIP accounts every time.
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