Investing In Mutual Funds? 7 Types Of SIPs You May Not Know About

The last decade has seen SIPs become one of the most popular investment routes for mutual funds in India. From a figure of INR 3,334 crore in July 2016 to a nearly ten times bigger figure of INR 28,464 crore in July 2025, SIPs have been rapidly seeing their popularity grow amongst investors¹.

After all, the convenience of investing a fixed amount (as small as INR 100) at fixed intervals, such as an INR 1,000 per month SIP, for maybe 10 years, seems more convenient than trying to time the market when putting in a big chunk of money in one go, right?

But apart from this regular SIP that most of us know, did you also know that there are different types of SIPs that you can choose as an investment route? Curious to explore? Then check out these lesser-known SIPs through which you can invest in mutual funds:

1. Step-Up SIP

Also known as top-up SIPs, step-up SIPs allow you to increase your contribution periodically, thus enabling you to accumulate a bigger corpus over the period. 

For example, if you are currently doing an SIP of INR 5,000 per month, you can choose to have an annual top-up of, say, 10%, implying that from the next year, your SIP amount will be INR 5,500 (a 10% increase). So, with step-up SIPs, you can keep increasing your SIP on an annual basis, and ultimately accumulate a larger corpus vs regular SIPs.

2. Perpetual SIP

As their name suggests, perpetual SIPs are similar to regular SIPs, but the tenure is not fixed. So instead of investing, say INR 1,000 per month for 10 years, you would keep on investing that amount until and unless you request the AMC to stop your SIP.  So, you can keep investing for as long as you wish, and you can request the fund house to stop your SIP once you wish to end your contributions.

3. Flexible SIP

These SIPs allow you a high degree of flexibility to make changes to your SIP investment, be it in terms of the investment amount or frequency. This can be especially helpful if you tend to have variations in your income.

For example, when your income increases, you can proportionately increase your SIP contributions too, and when your income reduces, you can lower your SIP contributions, if needed. 

This way, you need not stop or pause your SIPs during financial ups and downs, and just adjust the investment contributions on a need basis. Hence, such flexibility gives you more control over your investment contributions and allows you to make changes as per your financial situation.

4. Multi SIP

Another type of SIP is a multi-SIP. This allows you to make investments in multiple schemes of the mutual fund house through a single SIP, instead of doing different SIPs for each scheme. 

For example, if you start a multi-SIP with INR 20,000, in four mutual fund schemes of an AMC, INR 5,000 can be allotted to each of them for diversification.

5. Trigger SIP

In case of trigger SIPs, you can make an investment only when a specific event occurs in the stock market, which can be something like a favourable market movement or the achievement of a predetermined NAV level. So, to maximise the benefit of this type of SIP, you should ideally have a good understanding of the market conditions. If you do not have much knowledge and experience in this segment, then you may choose to avoid this type of SIP initially.

6. SIP With Insurance

Another unique type of SIP is ‘SIP with insurance’, which gives you an added layer of protection through a life insurance policy, which covers your nominee during the SIP’s tenure². The AMC, in case of your unfortunate demise during the SIP’s tenure, transfers the insurance cover amount to your nominee, provided the SIP was running at the time of the demise.

7. Daily/Weekly SIP

Yes, you read that right. Beyond the usual monthly or quarterly SIPs, some AMCs (such as ICICI Prudential, HDFC Securities, and LIC) also offer daily or weekly SIPs if you want to invest more regularly. 

With daily SIPs, you can invest a fixed amount of money every business day, which can be helpful if you don't want to invest a relatively bigger amount on a monthly or quarterly basis. Similarly, you can opt for weekly SIPs too to spread your investment across the four weeks of every month.

Conclusion

SIPs are one of the most convenient and disciplined ways to invest in mutual funds. By exploring different SIP options, whether step-up, flexible, or even daily, you can align your investments with your goals and cash flow. Choose wisely, stay consistent, and let compounding work for you. To learn more about investment and portfolio management, sign up for Grip Invest today.

References:

1. AMFI India, accessed from: https://tinyurl.com/yvejph27
2. ET Money, accessed from: https://www.etmoney.com/learn/mutual-funds/systematic-investment-plan-types/

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