SYSTEMATIC INVESTMENT PLAN

Build a regular investing habit, one step at a time.

A Systematic Investment Plan (SIP) allows you to invest a set amount at regular intervals in a mutual fund. A SIP can support discipline, but it does not eliminate market risk or guarantee returns.

Mutual fund investments are subject to market risks. Read all scheme related documents carefully.

THE CORE ADVANTAGES

Why invest through a Systematic Investment Plan?

A SIP removes the stress of trying to time the market, enabling consistent wealth-building over time.

DISCIPLINE

Financial Regularity

Automates investing directly from your bank account every month, eliminating emotional decision-making.

AVERAGING

Rupee Cost Averaging

Automatically acquires more units when market prices drop and fewer units when prices rise, averaging out purchase costs.

ACCESSIBLE

Start with Modest Amounts

You do not need large sums of capital to start. Many mutual funds allow SIPs beginning with manageable monthly amounts.

FLEXIBILITY

Convenient Control

You can pause, stop, or step up your SIP contribution as your earnings grow or financial circumstances change.

THE WORKFLOW

How a SIP Operates in 4 Steps

A Systematic Investment Plan simplifies wealth creation by automating your investments at regular intervals. Follow these four clear steps to begin your journey with discipline and clarity.

1. Select Your Target Goal & Timeline

Decide whether this investment is intended for retirement, children’s higher education, or long-term wealth compounding.

2. Pick a Scheme & Investment Amount

Choose a suitable fund category (Equity, Debt, or Hybrid) and define a comfortable monthly debit amount.

3. Set Up Automated Bank Mandate

Complete one-time paperless mandate authentication so contributions are debited smoothly on your chosen date.

4. Track & Review Digitally

Monitor your accumulated units, NAV, and statements conveniently through Shubhika’s supported app features.

REGULAR APPROACH

Systematic Investment Plan (SIP)

Invest small fixed amounts every month or quarter.
Averages cost of units across bullish and bearish market cycles.
Matches monthly salary and ongoing income inflows.
Reduces psychological pressure of timing entries into the market.

Best suited for: Salaried professionals and investors seeking disciplined, long-term wealth formation.

ONE-TIME APPROACH

Lump-Sum Investment

Deploy a single capital amount at one time.
All units are purchased at the prevailing NAV on the date of entry.
Suitable when deploying windfall gains, annual bonuses, or asset sales.
Often allocated into short-term debt funds or deployed gradually via STP.

Best suited for: Investors with existing liquid surpluses or specific short-term holding needs.

IMPORTANT PERSPECTIVE

What to keep in mind before starting a SIP

No Guaranteed Returns: A SIP does not shield your investments from market corrections, nor does it guarantee a positive rate of return. Equity funds experience volatility, and the value of your invested corpus can decline during economic downturns.

Patience is Required: The true benefit of rupee cost averaging and compounding typically requires multi-year horizons (5 to 10+ years) to weather short-term business cycles.

Suitability First: Before starting an SIP, make sure you maintain adequate emergency savings and understand the underlying scheme’s riskometer rating and expense ratio.