Regular SIP versus Top up SIP- Which is Better?

SIP stands for a systematic investment plan that allows individuals to invest on regular intervals be it daily, monthly or quarterly. A fixed amount as decided by the investor gets deducted automatically on the pre-decided day. However, with the increase in income, if the investor wishes to increase the ongoing SIP, he/she can do it with a top up on the already going or start a new one with the higher amount.

Advantages of Top-up SIPs :

  • Top up SIPs are a lot more beneficial than usual SIPs as the amount get doubled at the end of the term chosen for SIP.
  • SIP is an investment made to yield financial benefits, topping up means higher SIPs resulting in faster yields and higher benefits. The feature of compounding raises the invested capital exponentially.
  • Top up offers higher yields in less time as with the increased amount the return also increases.
  • The best way to fight inflation is to invest more and keep the money reserved to save an extra penny with higher investment.
  • Something that is ongoing bears more fruit than starting a new one altogether, same stands for SIPs adding on the value of ongoing SIP yields better returns than starting a new one.
  • Looking for a new opportunity for investment is time-consuming and an elongated process, therefore, top up SIPs are a better-chosen option in such situations.
  • Top up SIPs help you achieve your financial goals sooner than you have actually planned.

Why SIP(Systematic Investment Plan)?

  • Systematic investment can be for various purposes. It can be to multiply finances. Some individuals are smart enough to increase their income manifolds by investing in the market or any mutual fund scheme that helps in making them rich by multiplying their investment amount, therefore, resulting in capital gains.
  • It can be to secure your child’s future. Some people start making small investments for a long period of time in order to help their child in the future with higher returns of the small investment made a long time back.
  • Some people invest at a young age to secure their future when they grow old. Since they realize that no one will ultimately be with them or there will be financial insecurity, they save for their future.
  • Systematic investment plans are a smart way of investing and securing yourself financially. It shouldn’t be an effort wasted without a vision and a better understanding. Investment should be wise to get you better returns that will help you in the future. Be your financial planner, make wise investments.


How to avail Top up SIPs?

There is a specific form to be filled for Topping up SIP. The request gets accepted and after 30 days the top up SIP can only be initiated.

All the information of the SIP you wish to make the top up to has to be provided along with the top up amount, frequency of the top up.

Top up SIPs are a faster way of getting the surplus amount and higher returns but make sure to maintain and calculate the required between the two SIPs to maintain the flow and balance. Also, the SIP amount is under specific denomination so choose the amount accordingly.

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