What is SIP?
A Systematic Investment Plan (SIP) is a disciplined way to invest in mutual funds by investing a fixed amount at regular intervals, such as monthly or quarterly, helping you invest consistently over the long term.
Consistent investing
Buy more units when prices are low and fewer when prices are high, helping reduce the impact of market timing.
Reduces volatility impact
Rupee cost averaging helps smooth out market ups and downs, making investing more predictable.
Long-term investing
Investing regularly over time can help you benefit from the potential of compounding, subject to market performance.
Flexible & structured
Choose a suitable SIP amount and frequency, with options to increase, modify, pause or stop it, subject to scheme rules.
SIP Calculator
SIP calculator estimates the amount you’ll accumulate from monthly investments based on an expected return rate over a set duration
Monthly SIP Investment
5000
500
10000000
Expected Rate of Return
13
2
13
Investment Period
5
1
30
Disclaimer
- This calculator is provided for informational purposes only.
- The results are based on user inputs and should not be considered as investment advice. Users should seek the advice of a qualified financial professional before making any investment decisions.
- The creators of the calculator and its affiliates shall not be held responsible for any financial losses resulting from the use of the calculator.
- Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
- SIP is allowed in select open ended schemes. Refer the Scheme SAI, SID, KIM for detailed information.
Benefits of SIP
Systematic Investment Plans offer a structured way to invest in mutual funds. Outlined below are the key benefits and features that make SIPs a preferred investment choice.
Disciplined Investing
Regular investing builds a saving habit and steadily grows your wealth discipline is key in equities.
Power of Compounding
Earn returns on your principal and past gains - time turns small investments into exponential wealth.
Rupee Cost Averaging
Investing through ups and downs smooths market volatility, so you don’t need to track the market daily.
Flexible & Convenient
You can start with just ₹ 500 and adjust over time to meet goals, beat inflation, and reach targets faster.
Our Funds
How is SIP different from Lumpsum?
Understand the core features of systematic deployment versus immediate market exposure.
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Parameters
- Investment approach
- Market timing
- Risk exposure
- Cash flow sustainability
- Investment discipline
- Return potential
- Investor profile
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Systematic Investment Plan (SIP)
- Fixed amount invested at regular intervals
- Reduces dependency on market timing by spreading investments across cycles
- Gradual exposure helps average purchase cost over time
- Aligns well with regular income and monthly budgeting
- Automated and systematic, encouraging consistent investing
- Suitable for long-term, steady investing; returns vary with market conditions
- Suitable for investors seeking gradual market participation
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Lumpsum
- Entire amount invested at one time
- Highly dependent on market conditions at the time of investment
- Full exposure to market volatility from day one
- Requires surplus funds to be available upfront
- Relies on investor initiative and timing decisions
- May benefit more in consistently rising markets due to early capital deployment
- Suitable for investors with lump sum capital and higher timing confidence
Practical Example: Investing ₹6 lakh as a lump sum depends heavily on market timing. Investing the same amount through a monthly SIP of ₹50,000 spreads investments across multiple market entry points over a year.
Disclaimer: This illustration is for investor awareness and educational purposes only. The figures are indicative and based on assumptions derived from historical market behaviour. Actual investment outcomes may vary depending on market conditions, fund performance, and investment tenure.
Types of SIP
Choose the exact mechanism that matches your wealth objectives.
Regular SIP
Invest a constant fixed amount systematically at pre-defined intervals (monthly, quarterly, or weekly).
Step-Up SIP
Automatically increase your investment amount periodically (e.g. 10% every year) in line with salary hikes.
Perpetual SIP
Invest without specifying an end date, allowing compound interest to work continuously until stopped manually.
Learn more about SIP Investment
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Large-cap Stocks, Small-cap Stocks, Mid-cap Stocks — What is the difference?
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There are thousands of companies in the Indian stock market. There are about 2,113 companies listed on the NSE and 5,311 companies listed on the BSE.
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Video
- 3 min read
- April 4, 2022
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5 Reason to Boost your SIP
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As we all agree, it is not possible to time the market, and therefore a Systematic Investment Plan (or SIP) is a preferred mode of investment to invest in mutual funds.
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Podcast
- 1 min read
- October 4, 2021
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Ep. 00: Introduction
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Welcome to the Equity Sahi Hai podcast brought to you by Motilal Oswal Asset Management Company. Equities have the potential to deliver inflation-beating returns for your portfolio.
Frequently Asked Questions
What is an SIP?
- An SIP is a specific amount,invested for a continuous period at regular intervals.
- It is similar to a regular saving scheme like a recurring deposit.
- It allows the investor to buy units as per a pre decided frequency; the investor decides the amount and also the scheme / scrip to invest in.
- Due to the principle of cost averaging, more number of units are bought in a falling market and fewer units in a rising market.
- SIPs allow you to take part in the stock market, without trying to time it, also bringing discipline to your investments.
What are the benefits of an SIP?
- Power of saving:The power of saving underlines the essence of making money work if only invested at an early age. The longer one delays in investing, the greater the financial burden to meet desired goals. Saving a small sum of money regularly at an early age makes money work with significant impact on wealth accumulation explained through the illustration below.Illustration:
AtendofYear5%10%15%20%1Rs.1,050Rs.1,110Rs.1,115Rs.1,1205Rs.1,276Rs.1,611Rs.2,011Rs.2,48810Rs.1,623Rs.2,594Rs.4,046Rs.6,19215Rs.2,079Rs.4,177Rs.8,137Rs.15,40725Rs.3,386Rs.10,835Rs.32,919 Rs.95,396 The above is for illustration purpose only. The SIP amount, tenure of SIP, expected rate of return and unit price are assumed figures for the purpose of explaining the concept of advantages of SIP investments. The actual result may vary from depicted results depending on scheme selected. It should not be construed to be indicative of scheme performance in any manner. Past performance may or may not be sustained in future. - Rupee Cost Averaging:Timing the market is a difficult task. Rupee cost averaging is an automatic market-timing mechanism that eliminates the need to time one`s investments. Here, one need not worry about where share prices or interest are headed as investment of a regular sum is done at regular intervals; with fewer units being bought in a declining market and more units in a rising market. Although SIP does not guarantee profit, it can go a long way in minimizing the effects of investing in volatile markets.
- Convenience:Three simple paperless steps to invest in an SIP:
1.Register for an SIP online
2.Fill the required details
3.Ensure availability of funds
4. Disciplined Investing:It’s the key to investing success. Regular investment makes you disciplined in your savings and also leads to wealth accumulation. Systematic investing is a time-tested discipline that makes it easy to invest automatically. Investing regularly in small amounts can often lead to better results than investing in a lump sum.