Building long-term wealth doesn’t need a large lump sum. A systematic investment plan lets you invest a fixed amount at regular intervals into mutual funds, helping you build an investment habit and work towards long-term financial goals. All it takes is consistency, not timing the market.
With My Mudra, compare mutual fund schemes and begin your SIP investment online through a fully digital process, without visiting a branch.
Note: Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
10K+
active investors on My Mudra
15+
Mutual Fund Partners
100%
Digital Onboarding
A Systematic Investment Plan or SIP, is a way of investing a fixed sum in a mutual fund scheme at regular intervals, usually monthly, rather than putting in one large amount at once. It’s designed to build a disciplined saving habit over time.
Every instalment buys units of the fund at that day’s Net Asset Value (NAV). This evens out your average purchase cost through rupee cost averaging: your fixed amount buys more units when prices fall and fewer when prices rise, softening the impact of short-term volatility.
SIP can help reduce the need to time the market by spreading investments across multiple instalments and market conditions. You invest on a fixed date each month and let compounding do the rest, without requiring you to predict short-term market highs and lows.
A systematic investment plan also builds financial discipline. It functions similarly to a recurring deposit, as the money is automatically taken out of your bank account, but it is invested in market-linked assets that have the potential for greater future growth.
Even small instalments can add up over time to form a significant corpus. For long-term objectives like retirement, a child’s education or a potential home purchase, this makes it a popular choice.
Know why SIP works so well for long-term investors. Here are some key features and potential benefits of investing through SIP:
You automatically acquire more units when prices are low and fewer when prices are high since you invest a fixed amount regularly. This averages out your buying cost and lowers the risk of making a big investment at the wrong time.
Returns generated on your investment get reinvested and, in turn, generate further returns. Over a long tenure, this compounding effect can meaningfully boost your final corpus.
Depending on the scheme and platform, investors may be able to modify, pause or stop their SIP instalments. Applicable rules, cut-off dates, exit loads or other conditions may vary. This flexibility suits investors with changing income levels or shifting financial priorities.
Most fund houses let you begin with amounts as low as ₹500 a month, and AMFI’s “Chhoti SIP” initiative now enables micro-SIPs from ₹250, making it accessible even for first-time or younger investors.
A well-chosen SIP plan can be mapped to specific goals, such as a down payment, higher education or a retirement corpus, helping you stay focused and track progress against a target amount and timeline.
Source for minimum SIP amounts: AMFI’s “Chhoti SIP” initiative, launched in February 2025 under SEBI’s financial inclusion push.
Fund houses offer several variants of the standard SIP plan to suit different investor needs.
A fixed amount is invested at a fixed interval, typically monthly, in a chosen scheme. This is the simplest and most common way to invest.
This option lets you automatically increase your instalment periodically, usually annually, in line with your rising income, so you can invest more without having to set up a new mandate each time.
Investors can vary their instalment amount each month based on cash flow, within a pre-agreed range, offering more control than a fixed monthly commitment.
Unlike SIPs with a fixed end date, a perpetual option continues indefinitely until you choose to stop it, which suits long-term, goal-based investors.
A specialised SIP option where investments are linked to predefined market conditions or triggers. It may require greater understanding of market movements and is generally more suitable for experienced investors.
Once you set up your instalment, a fixed amount is auto-debited from your bank account on a chosen date each month via a National Automated Clearing House (NACH) mandate and is used to buy units of your chosen scheme at that day’s NAV.
Each instalment is treated as a separate investment for tax and holding-period purposes. This means that the 12-month long-term holding clock starts afresh for every single instalment, not for the account as a whole.
Your units accumulate over time and the value of your holding fluctuates with the market value of the underlying assets. You can track your portfolio, switch schemes or redeem units at any point, subject to exit load and tax rules.
AMFI investor education material and mutual fund taxation guides on instalment-wise first-in-first-out (FIFO) treatment.
Let’s look at a simple growth illustration for a monthly SIP investment of ₹5,000, assuming an indicative annual return of 12%. This is only an assumption for illustration and not a guarantee of actual performance.
| Investment Tenure | Total Invested | Estimated Value* |
|---|---|---|
| 5 years | ₹300,000 | ₹412,000 approx. |
| 10 years | ₹600,000 | ₹1,161,000 approx. |
| 15 years | ₹900,000 | ₹2,523,000 approx. |
| 20 years | ₹1,200,000 | ₹4,996,000 approx. |
Note: Figures are illustrative estimates based on an assumed 12% annual return and do not represent guaranteed or past returns of any specific scheme. Mutual fund returns are market-linked and subject to fluctuation.
This illustration shows how consistent monthly investments may grow over a longer investment horizon, assuming the stated return rate. The actual value can be higher or lower depending on market performance.
There is no fixed SIP amount that works for every investor. The amount you choose should fit your financial situation, investment goals and ability to stay invested over time.
Before deciding your monthly SIP amount, consider:
Start with an amount that fits comfortably within your regular income.
Account for rent, household expenses, insurance premiums and other regular commitments.
Ideally, maintain adequate funds for unexpected expenses before committing a large amount to long-term investments.
Consider your existing EMIs, credit card dues and other repayment obligations when deciding how much you can invest.
Your SIP amount may differ depending on whether you're investing for retirement, education, a home purchase or another long-term goal.
Longer-term goals may allow you to plan investments differently from short-term financial needs.
Consider how comfortable you are with market fluctuations and choose investments accordingly.
There is no universal rule that requires you to invest a fixed percentage of your salary. Your SIP amount should be based on your income, expenses, financial obligations, goals and risk profile.
Are you wondering how much your monthly contribution could grow? Use our online calculator to plan your online SIP investment before you commit. Enter your monthly investment amount, expected rate of return and investment tenure to get an estimated maturity value.
This tool helps you compare different tenures and instalment amounts side by side, so you can choose the option that best fits your goals and monthly budget.
Investing this way suits a wide range of profiles. It may benefit:
Those new to mutual funds can start with a small amount and gradually become comfortable with market-linked investing without needing to commit a large sum upfront.
Aligning your instalment with your salary date makes it easier to invest consistently as part of your monthly budget.
Anyone saving for retirement, a child’s education or a future property purchase can benefit from disciplined, long-horizon investing.
Since instalments average out purchase costs, this investment approach suits investors who want equity exposure without worrying about entry timing.
If you’re unsure how to invest in SIP for your specific goals, My Mudra can assist you with the investment process and available scheme information.
Talk to an AdvisorMy Mudra brings together India’s leading mutual fund houses on one simple, digital platform, making it easier to invest in SIP without visiting multiple websites or apps. Here’s what you get:
Wide Fund Selection: Compare the best SIP plans across equity, debt and hybrid categories from top AMCs in one place.
Transparent Comparison: View expense ratios, past performance and fund category side by side before you decide.
Fully Digital Journey: Complete your KYC, select a scheme and set up your mandate online, with no physical forms.
Ongoing Support: Our team assists with fund selection, portfolio tracking and queries throughout your investment journey.
Starting a SIP investment plan with My Mudra is designed to be quick and fully digital.
Visit the My Mudra SIP Platform: Go to the My Mudra SIP page and click “Invest Now” or submit the assistance form to begin your investment journey.
Log In or Register: Existing users can log in using their registered mobile number. If you’re a new user, register by entering your name, mobile number and email address.
Verify Your Mobile Number: Complete the OTP verification to securely activate your account.
Access Your Investment Dashboard: Once logged in, explore mutual fund categories, browse investment options and create goal-based investment plans from your dashboard.
Choose a Mutual Fund and Start Investing: Select a mutual fund that matches your financial goals and follow the on-screen instructions to complete your SIP setup.
Still unsure which fund suits you? Request a free call to receive guidance from our investment advisors by entering your name, mobile number and city, then selecting your employment type.
My Mudra partners with several established mutual fund houses to bring you a wide range of schemes across categories.
Our network includes fund houses such as Tata Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Axis Mutual Fund, Nippon India Mutual Fund, Kotak Mahindra Mutual Fund, Aditya Birla Sun Life Mutual Fund and UTI Mutual Fund, among others.
This wide selection means you can build a diversified SIP mutual fund portfolio across equity, debt and hybrid categories without switching platforms.
While this route helps manage timing risk through rupee cost averaging, it does not eliminate market risk entirely. The value of your investment can still fall if the broader market or the underlying fund’s holdings decline over a period.
Equity-oriented schemes can experience significant short-term volatility. A longer investment horizon may give investors more time to manage market fluctuations, but it does not eliminate the possibility of loss. Debt fund options carry relatively lower market risk but are exposed to interest rate and credit risk instead.
This approach works best with disciplined, long-term participation. Stopping instalments during market downturns can reduce the averaging benefit and may affect your overall returns.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
Each instalment in a systematic investment plan is treated as a separate investment for tax purposes and the applicable capital gains tax depends on how long each instalment has been held before redemption.
For equity-orientated mutual funds, units held for more than 12 months qualify as long-term capital gains (LTCG) and are taxed at 12.5%, with gains up to ₹1.25 lakh in a financial year exempt from tax.
Units held for 12 months or less are treated as short-term capital gains (STCG) and taxed at 20%.
| Fund Type | Holding Period | Tax Treatment |
|---|---|---|
| Equity-orientated mutual funds | More than 12 months (LTCG) | 12.5%, with gains up to ₹1.25 lakh in a financial year exempt from tax |
| Equity-orientated mutual funds | 12 months or less (STCG) | 20% |
| Debt funds (units purchased after April 2023) | Regardless of holding period | Your income tax slab rate |
Note: Income tax rules following the Union Budget 2024 amendments (effective 23 July 2024), as reflected in current AMC and tax advisory publications.
Since a single redemption can include instalments of different ages, it may contain both LTCG and STCG components, which are calculated on a first-in-first-out (FIFO) basis. Debt fund instalments are taxed at your income tax slab rate, regardless of holding period, for units purchased after April 2023.
It’s advisable to consult a tax professional to understand how taxation applies to your specific investments and redemption pattern.
Turn small, consistent contributions into long-term wealth. Compare mutual fund schemes, check your goals and start your SIP online with My Mudra in just a few minutes.
Many of our investors chose to invest with My Mudra to start or grow their portfolio. From first-time SIP investors to those consolidating a larger mutual fund portfolio, our platform has supported a wide range of financial goals. Many of our investors chose to invest in mutual funds with My Mudra precisely because comparing the best mutual funds in India felt overwhelming elsewhere. Our curated approach helped simplify that decision for them.
"I’ve been trading for the last 5 years, and I love the transparency of My Mudra. I can track my portfolio easily."
SIP Amount
₹10,000/mo
Goal
Wealth Growth
"Great all-in-one platform. SIP calculation and fund comparison is super easy."
SIP Amount
₹5,000/mo
Goal
Retirement
"Setup was super quick. I started investing within minutes."
SIP Amount
₹2,500/mo
Goal
Child Education
"I recently started investing, and My Mudra’s user-friendly interface makes investing in MF so simple and easy."
SIP Amount
₹15,000/mo
Goal
Tax Saving
"My Mudra’s regular reminders and expert insights have helped me stay consistent with my SIPs."
SIP Amount
₹8,000/mo
Goal
Emergency Fund
Guides on choosing schemes, sizing your instalment and staying invested through market cycles.
Comparing the three most common equity categories investors pick for a SIP. Understand how each one is built, the kind of volatility to expect and which investor profile each category tends to suit.
