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TOP-Up SIP Explain Me

1 Yr
30 Yrs

Projected Cash Flow

Date VSIP No.
Monthly Increase
Quarterly Increase
Half Yearly Increase
5%
7%
10%
5%
7%
10%
5%
7%
10%
Start Investment

About Top-Up SIP

SIP is one of the popular ways of investing in mutual funds. SIP mutual fund plan is a disciplined investment plan that helps an investor reduce the negative impact of market fluctuations on his portfolio. It is a well-known rule with the SIP investment that an investor receives more number of units when the market is low and less when the markets are high. Hence, today, investors want to invest in a mutual fund when the market is low. The concept of Top-Up SIP is simply to invest higher amounts periodically thereby creating a discipline of investing higher amounts to beat inflation and help an investor increase his investment portfolio with miss rising incomes.

What is Top-Up SIP?
A Top-Up SIP allows an investor to alter his SIP instalments when the markets are trading lower. Thus, a Top-Up SIP helps an investor invest more and get higher returns.

Example: Investor sets up a SIP from May 01 for Rs. 5000/- At the same time can choose to increase future SIP investments after every quarter or half yearly or yearly by either a fixed amount, say Rs. 100/- or by a set percentage '%' increase, say 10%.

Just like the traditional SIP plan, a Top-Up SIP plan allows an investor to decide the tenure and the amount of investment.

Benefits of Investing in Top-Up SIP

  • Investors enjoy the power of compounding and average rupee cost
  • It gives you the benefit of getting more units at a lower average cost
  • When the equity market is down, you can automatically invest more money to get attractive returns at low cost
  • Gives better returns than regular SIP as you can invest more when markets are down and less when the markets are high

FAQs on Top-Up SIP

Is Top-Up SIP suitable for everyone?
Investing in Top-Up SIP is suitable for individuals having Top-Up cash flows such as entrepreneurs or small businessmen. This is because such people earn their income in staggered amounts.

How can I check my Top-Up SIP amount?
You can use InvestOnline’s Top-Up SIP calculator to know the increases in the sum of your investment over monthly, quarterly or half yearly basis.

Is Top-Up SIP available for all mutual fund investments?
No, Top-Up SIP is not available for all mutual fund investments. You can check various Top-Up SIP plans online on InvestOnline.in using the Top-Up SIP calculator.

Is Top-Up SIP available for equity as well as debt funds?
Top-Up SIP is available for practically all funds just as SIP.