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SIP Investing Guide For 2023 – How To Plan Your Systematic Investment Plan

Personal Finance How To? 24-11-2022 | 5 min read

In SIP, you periodically invest a small sum of money into the chosen mutual fund of your choice. However, before you start investing into one, you have to deeply understand it, so that you can make the best judgement. At the end of this article, you will be able to figure out the best SIP plans to meet your needs.

Suppose you already have financial weaknesses like private loans, business loans, home loans, etc., to repay. In that case, a high inflation period may hinder your financial position. You can, however, prevent such crises with a Systematic Investment Plan (SIP). SIP permits you to scan your fund’s performance from time to time. SIP Plans are advantageous as they allow you to invest in a fund in periodic instalments. After understanding them, you can decide how to fund the best SIP plans. However, you must be cautious with fund allowance as it is a vital step in SIP investment. Rather than investing in too many funds, invest only in three to four funds that have consistently served well over the past years. In the start, it is vital to build a well-diversified as well as a balanced portfolio.

How much should you invest in a Systematic Investment Plan / SIP plan?

SIP plans in India are a big question for everyone. Yet, it is also vital to know how much you should invest in a SIP. You should invest at least 50% of your capital into equities in the abovementioned investments. 

It will guarantee you a total return over some time. But, for that, you have to be patient. It would help you to remember that capital market assets are always associated with some share of risk or volatility. And this may impact your returns. If you keep rolling out the reserves, you enter into new investments whenever the market sees a downfall, which will only raise your expenses.SIP plans benefit both market cycles- during gains and losses. Are you wondering how this happens? A balanced portfolio guarantees your return to be more than the money you invested at the end of your funding period. Therefore, it is vital to stay put and never shift from your goal of long-term savings for the future. Finding the best SIP for investment will help you row through the challenging course.

How to set your SIP goals?

The goal of a SIP plan is to guarantee that your portfolio gets the vital risk profile, along with a good diversification across asset classes. 

You can easily check out all mutual funds in India and their recorded returns through a simple Google search. 

Make sure that the mutual funds you choose meet the following criteria:

  • The total corpus, or the investment size, of the mutual fund, is immense. INR 500 Crore is a good consideration point. Of course, significant mutual funds do not have INR 500 Crore investments. Still, this is an excellent general thumb rule if you’re a newbie.
  • The lock-in period for a mutual fund should be for at least five years (the longer, the better).
  • Always select a reputed and trustable fund house. Several fund houses in our country, such as Reliance, HDFC, SBI, Birla Sun Life, etc., offer the best SIP for investment. So, choosing any one of them will be a sound judgement.

Steps for how to invest in SIP

Now let’s know in detail the steps to invest in an SIP plan.

Step 1- Understand your risk need and the goal of the investment

You will have to raise your risk hunger if you want higher returns. After setting your risk tolerance, it is vital to understand why you want to invest. But before that, you must check the best SIP for investment

Step 2- Pick a mutual fund for your asset

You can pick from varied mutual fund plans present in the market. However, the choice of funds should be based on your risk profile and the individual financial goals you want to gain through SIP investments. 

The fund’s rendition in the past few years should also be considered when picking the funds. 

Step 3- Pick a date for SIP

Under a SIP, your cash gets auto-debited from your bank account. It is vital to pick a particular date when it is suitable for you to pay. Most mutual fund firms propose the following dates for the investors to choose from- 1, 5, 10, 15, 20, and 28.

Step 4- Select the duration of your SIP plan

Investment in a mutual fund through a systematic investment plan (SIP) is the best and most suitable way to fulfill your financial goals. You can opt for a short-term investment, but it is advisable to invest for at least five years, if not more, to reap the better returns from your investment.

Step 5- Decide the best way to invest in SIP

You can invest in Systematic Investment Plan (SIP) either online or offline. The best part of this is that it permits auto-debit of the sum of money into your funds. So, there is no requirement to transfer your funds manually to your SIP account.


Never leave your investment midway. You must check for the best SIP plans before investing your money and go all the way. And don’t worry about the future, we have already mentioned how no investment is better than a Systematic Investment Plan. A financial expert like Piramal Finance can help you with applying for a personal loan and managing your finances swiftly. The team of experts will help you make the best decisions for your investment plan to have a burden-free life. Unleash a financially secure future with us now!

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