Start Investing with Smart SIPs for Your Family’s Financial Future

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Today, it is a widely-known fact of life that investment is the key to your family’s financial security. While there are several avenues for investment, some investments may suit you better than others if they match your family’s financial goals. When a lucrative investment helps to grow your capital over time, you can not only secure your family’s financial future, meeting milestones like a child’s education and marriage with ease but also have a contingency for financial emergencies. A smart SIP is a good place to start your investment journey. 

Additional ReadMaximizing Your Returns with the SIP Return Calculator


  • Understanding SIPs
  • Features of a Smart SIP
  • The Best Smart SIPs to Secure Your Family’s Future

Understanding a SIP

SIP stands for Systematic Investment Plan. This is an investment instrument that permits you to invest your capital in mutual funds on a regular basis, with amounts that you can choose, spread over a period. It prompts financial discipline as it forces you to save a fixed sum of money on a regular basis and invest it in an instrument that could potentially grow your wealth. It also provides you with the advantage of rupee-cost averaging, permitting you to buy more units (like stocks) when prices are low and fewer units when prices rise. 

Now that you know how a SIP works, you can consider a better way to invest in a SIP, by choosing a smart SIP that adjusts your frequency of payments and amounts to make maximum profits according to market conditions. 

Additional ReadSIP Calculator: Everything About SIP Investment Calculator

Features of a Smart SIP

A smart SIP has several features that translate into benefits for you, the investor. These features are mentioned below: 

  • Dynamic Allocation of Funds

A smart SIP employs a method of dynamic fund allocation. It changes between liquid and equity schemes based on the conditions in the market and the margin of safety. Since various factors influence market conditions, a smart SIP gauges conditions and makes your investment work maximally for you. You should note the difference between a SIP that lets you make fixed monthly instalments to the fund, and a smart SIP that lets you manipulate investment amounts according to market fluctuations. 

  • Frequency of Payment Options

When you opt for a smart SIP to invest your capital, you can choose your minimum and maximum instalment amounts (usually paid out monthly). Additionally, you can also select a default amount. In case you do not choose minimum or maximum amounts, the default amount of the instalment will apply to your smart SIP. 

  • Mutual Fund Growth Option

You can choose the smart SIP only if you select the Growth option in an applicable mutual fund. It is not available to you in the category of dividend-based mutual funds. What does this mean for the investor? This means that you, the investor, will not receive any applicable dividend payments from equity in your SIP, but will receive capital appreciation through the value of your SIP units. 

  • Systematic Transfer Plan

An STP or systematic transfer plan can also incorporate a smart SIP. Here, a method of transferring funds from one plan to another plan within the same fund house is possible. So, in other words, you can employ your smart STP to shift your capital from an equity scheme to a liquid scheme and the other way around, depending on the conditions of the market. 

  • A Range of SIPs

A smart SIP, depending on the scheme you opt for, may give you the option of having a life insurance plan attached. 

Additional ReadMutual Funds

The Best Smart SIPs to Secure Your Family’s Future

Several mutual funds offer you Growth options, with the aim of capital appreciation through a smart SIP. Consequently, you may refer to a SIP as a method of investment in mutual funds rather than an actual investment instrument. A smart SIP has many benefits, not least of which is the creation of wealth by leveraging market movements. In case you are concerned about the risks a SIP poses, in the case of equity investment, you may choose a blend of equity and liquid funds to mitigate your risk. 

A Smart SIP - A Smart Investment

A smart SIP is a smart way to allocate your capital and diversify your portfolio. You not only get a great opportunity to save money for the long term, but you can grow it as well. If a smart SIP is opted for early on in your career, it is possible to grow a corpus over a period of 5 years or more and witness potential capital allocation to secure your family’s future in an effective way. A smart SIP can be started with a low amount of capital and this can be increased over time, aligned with the funds you have at your disposal.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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