What are the types of SIP?

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What are the types of SIP?
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1. Regular SIP
The simple and most accessible form of SIP in
mutual funds is Regular SIP. This SIP lets
investors choose the period pattern of their
investment, i.e. daily, weekly, monthly,
semi-annually or annually. However, the return
through this SIP is low, and hence it is not
recommended. Also, the investor can't change the
amount during the investment period.
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2. Perpetual SIP
Every SIP in a mutual fund requires the investor
to mention the start and end date of SIP.
However, it is not mandatory to note the end date
in the case of a Perpetual SIP. A SIP with no end
date policy is called a Perpetual SIP. It is
assumed the investment procedure will run until
2099. However, it is not recommended to short
term investors.
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3. Top-up SIP
Under the Top-up SIP, you can increase a certain
amount of instalment after every fixed period.
For example, if your current instalment amount is
Rs 2000 per month, you can increase it by adding
Rs 500 after 6 months. Now your instalment amount
is Rs 2500, which will increase to Rs 3000 after
another 6 months. People seeing regular progress
in their income can opt for Top-up SIP.
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4. Trigger SIP
In a Trigger SIP, an investor set a trigger point
for their investment. For example, you can
mention the highest or lowest amount at which you
want to withdraw the investment or purchase the
units of a best mutual fund at a particular
trigger amount. There are various trigger options
like amount, dates and index level like Sensex or
Nifty. However, this SIP is recommended only for
professional investors who can set triggers with
their profound knowledge in analysing the market.
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5. Flexible SIP
Flexible SIP lets you increase or decrease the
amount of investment at your convenience. While a
fixed SIP in mutual funds does not allow you to
change the amount of investment, in Flexible SIP,
you can change it before 7 days of the
installment date. It is recommended to people
with irregular cash flows.
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