5 Prominent Features of an SIP Mutual Fund

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SIP (Systematic Investment Plan) is one of the most considered tools by mutual fund companies to receive the investments and pay out the dividends. Be it senior citizens or youngsters; this investment plan provides benefits to all age groups. So, here are some of the features of SIP Mutual Fund.

Remember your childhood days when you used to save small amounts of money just to purchase your favourite toy? Not to forget, probably this is the way how your parent’s integrated saving habits in you. Today, when you are earning enough, you can still utilise that old method to save for your future goals.

The only difference will be that you can now invest in SIP Mutual Fund instead of a piggy bank. And, the goals will be more realistic and expensive. So, if you don’t know much about this investment plan, here are top 5 features that will make you familiar with SIP.

  1. Top-Up SIP:

Top-Up SIP is one of the prominent features of SIP investment plan, and it is also known as Step-up SIP. Almost all the fund houses offer this facility that allows you to increase your amount of investment after a period of time. Thus, using this service, you can start investing with a small amount and can gradually increase if you want.

  1. Pausing SIP Investment:

SIP offers you an opportunity to pause your investment whenever you want. It is beneficial at the time of financial problems or job loss. Thus, instead of stopping all the SIP investment at once, you can pause it for the period of 1 to 3 months. And, once your financial distress is decreased and you come back on track, you can resume your investment again.

  1. Flexi SIP:

This feature allows you to adjust your investment for a particular month. Upon asking, most of the investors state that they would refrain from investing in SIP Mutual Fund only because of uncertainties of cash flow. But, with this feature, you don’t have to worry at all. You can either increase or decrease monthly investment for any month.

  1. Trigger SIP:

This facility is more helpful for experienced investors as it demands proper knowledge and awareness of the market. With this service, you are allowed to either set NAV (Net asset value), an index level, or an event to help you modify the anticipations. For instance: If there is any government policy coming up and you know that it can affect your index level, you can modify it accordingly.

  1. Perpetual SIP:

Usually, if you want to run a SIP investment for a set period, you would have to enter the start and end date while signing up for this plan. However, if you don’t fill up the end date, most of the fund houses automatically fill it up till 2099. You can get it changed by submitting a written application. In case you don’t, you can redeem your money anytime you want.

These are some of the features that make SIP a better investment option. Hence, if you are looking forward to investing somewhere for a longer period, try SIP.

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