Start a SIP in Mutual Funds Online
Start a mutual fund SIP and invest a fixed amount automatically at your chosen frequency on INDmoney. Choose daily, weekly, monthly or quarterly SIPs in mutual funds and pay directly through INDpay UPI.
How To SIP In Mutual Funds On INDmoney
Choose the Mutual Fund
Select the mutual fund you want to invest in and enter your SIP amount. The minimum SIP amount can vary by fund, but on INDmoney, you can start from as little as ₹500, depending on the scheme.
Select SIP Frequency
Choose how often you want to invest. INDmoney supports daily, weekly, monthly and quarterly SIPs in mutual funds, so you can match your SIP with your income cycle and savings habit.
Track SIP Investment
Each SIP instalment adds more mutual fund units to your portfolio. Over time, you can track invested value, current value, XIRR, returns and allocation to see how your mutual fund SIP is performing.
How Does SIP In Mutual Funds Work
A SIP or a systematic investment plan in mutual funds lets you invest a fixed amount into a mutual fund at regular intervals instead of investing all your money at once. Once your SIP is set up, the selected amount gets invested automatically as per your chosen schedule.
Every SIP instalment buys mutual fund units at that day’s NAV. If the NAV is lower, your SIP amount buys more units. If the NAV is higher, it buys fewer units. This is why SIPs help you invest across different market levels instead of depending on one single entry point, also called as rupee-cost averaging.
Think of SIP like a habit-building system for investing. You are not trying to guess the best day to enter the market. You are investing regularly, collecting units over time and giving your money a longer runway to grow.
Let's take an example to understand how SIP in mutual funds work:
Suppose you start a ₹5,000 monthly SIP in a mutual fund.
- In month one, if the NAV is ₹50, you get 100 units.
- In month two, if the NAV falls to ₹40, you get 125 units.
- In month three, if the NAV rises to ₹62.5, you get 80 units.
Your SIP amount stays the same, but the number of units changes with the NAV. Over time, this spreads your buying price across market highs and lows.
Key Features Of SIP In Mutual Funds On INDmoney
Choose Your SIP Frequency
Set up a SIP in mutual funds based on how you earn and save. INDmoney supports daily, weekly, monthly and quarterly SIPs, so you can invest smaller amounts more often or larger amounts less frequently.
Pay Directly via INDpay UPI
Set up your mutual fund SIP payment through INDpay UPI and keep your investment schedule automated. This reduces the need to manually transfer money every month before investing.
Increase SIP With Step-up
A step-up SIP lets you increase your mutual fund SIP amount automatically every year by a fixed amount or percentage. This helps your investment grow as your income grows.
Pause or Edit SIPs
Your SIP should be flexible because your financial life can change. On INDmoney, you can manage active SIPs by editing the amount, changing the date, pausing or stopping future instalments.
Track All SIPs in SIP Centre
The SIP Centre gives you one view of all active mutual fund SIPs and upcoming investment commitments. This helps you know how much money is scheduled to go into mutual funds.
Start Small & Increase Later
You do not need a large amount to start SIP in mutual funds. You can begin with a small SIP amount, depending on the fund’s minimum requirement, and increase it later.
Choose Your SIP Frequency On INDmoney
Daily SIP in Mutual Funds
Daily SIP spreads your investment across many market days. It may suit investors who want to invest very small amounts frequently and reduce dependence on one SIP date.
Daily SIP does not automatically mean better returns than monthly SIP. Its main benefit is that your investment gets spread across more days.
Weekly SIP in Mutual Funds
Weekly SIP invests once every week. It gives more frequent market participation than monthly SIP, while still being easier to track than daily SIP.
This can suit investors who receive weekly income, run a small business or prefer breaking a monthly investment into smaller parts.
Monthly SIP in Mutual Funds
Monthly SIP is the most common choice because it matches the salary cycle. You can set the SIP date after salary credit and fixed expenses.
For example, if your salary comes on the 1st, you may keep your SIP on the 5th or 7th. This helps you invest before discretionary spending begins.
Quarterly SIP in Mutual Funds
Quarterly SIP may suit investors with quarterly income, business cash flows, bonuses or irregular savings patterns.
It is useful when your savings are not monthly but still predictable over a longer cycle.
What Is Step-up SIP in Mutual Funds?
A step-up SIP in mutual funds automatically increases your SIP amount at a fixed interval, usually every year. The increase can be by a fixed amount or a percentage.
This matters because your income may rise over time. If your salary increases but your SIP amount stays the same for years, your investment rate may not grow enough. Step-up SIP helps your SIP grow with your income.
Suppose you start a ₹10,000 monthly SIP with a 10% annual step-up.
- In year one, you invest ₹10,000 per month.
- In year two, the SIP becomes ₹11,000 per month.
- In year three, it becomes ₹12,100 per month.
- In year four, it becomes ₹13,310 per month.
The increase may look small in the early years, but over a long period, step-up SIP can make a large difference because you are not only investing for longer, you are also investing more as your income grows.
Why Step-up SIP Can Have a Big Impact?
A normal SIP keeps your investment amount fixed. A step-up SIP increases the amount over time.
This means two investors may both start with ₹10,000 per month, but the one using step-up SIP may invest much more over 10–15 years. If income is rising, a step-up SIP helps convert salary growth into investment growth.
How Are SIP Returns Calculated In Mutual Funds?
SIP returns should not be judged only by the simple return because SIP investments happen on different dates. Each instalment has a different holding period.
This is why SIP returns are usually measured using XIRR.
XIRR considers the date and amount of every SIP instalment and converts the full journey into one annualised return number. It is more useful for SIP investors because it adjusts for the timing of every investment.
Suppose you started a ₹10,000 monthly SIP three years ago.
Your first ₹10,000 instalment has stayed invested for almost three years.
Your latest ₹10,000 instalment may have stayed invested for only a few days or weeks.
Both instalments are the same amount, but they have not had the same time to grow. A simple return number does not handle this properly. XIRR adjusts for the date of each SIP and shows your actual annualised return.
Why Your SIP Return May Differ From Fund Return
A mutual fund’s 1-year or 3-year return is based on NAV movement over a fixed period. Your SIP return depends on when your money actually entered the fund.
So a fund may show 15% one-year return, but your SIP XIRR may be different because your investments happened in parts across the year.
Frequently Asked Questions On SIP In Mutual Funds
SIP in mutual funds is a way to invest a fixed amount in a mutual fund at regular intervals. Instead of investing all your money at once, you invest smaller amounts daily, weekly, monthly or quarterly.
For example, instead of investing ₹1.2 lakh at once, you can invest ₹10,000 every month for 12 months.
Every SIP instalment buys mutual fund units at the applicable NAV. If the NAV is lower, your SIP buys more units. If the NAV is higher, it buys fewer units.
Over time, this spreads your investment across different market levels instead of depending on one single market entry point.
Yes, SIP can be useful for beginners because it helps them start small and invest regularly without trying to time the market.
A beginner can start with a small monthly SIP, understand how mutual fund values move, and increase the SIP later as confidence and income grow.
No. SIP does not guarantee returns. Mutual fund values can rise or fall depending on market movement and fund performance.
SIP helps with discipline, gradual investing and rupee cost averaging, but it does not remove market risk.
Rupee cost averaging means your fixed SIP amount buys more units when NAV is low and fewer units when NAV is high.
For example, ₹5,000 buys 100 units when NAV is ₹50. If NAV falls to ₹40, the same ₹5,000 buys 125 units. This spreads your purchase cost over time.
SIP is better when you want to invest regularly from income or avoid investing a large amount at once. Lumpsum is better when you already have surplus money and are comfortable investing it immediately. Many investors use both: SIP from salary and lumpsum from bonuses or extra savings.
Read about SIP vs Lumpsum.
Step-up SIP automatically increases your SIP amount at a fixed interval, usually every year. The increase can be by a fixed amount or percentage.
For example, a ₹5,000 SIP with a 10% annual step-up becomes ₹5,500 next year and ₹6,050 the year after.
A fund’s return is based on NAV movement over a fixed period. Your SIP return depends on your actual investment dates and amounts. So even if a fund shows a 3-year return, your SIP XIRR may be different because your money entered the fund month by month.
Your SIP duration should match your goal. A retirement SIP may run for decades, while a short-term goal SIP may run for a few months or years.
The right question is not “how long should SIP run?” but “when do I need this money?”
Not automatically. If your goal is long term and the fund is still suitable, market falls may allow your SIP to buy more units at lower NAVs.
Review the fund, goal and portfolio before stopping. Do not stop only because the market is down.
Yes, you can have multiple SIPs. But every SIP should have a clear role.
For example, one SIP may be for large-cap stability, one for flexi-cap growth and one for liquid fund parking. Too many similar SIPs can make the portfolio cluttered.
Yes. You can run a SIP and also make lumpsum investments in the same mutual fund.
For example, you may invest ₹10,000 monthly through SIP and add ₹1 lakh after receiving a bonus.
There is no single best mutual fund for SIP. The right fund depends on your goal, time horizon and risk appetite.
An equity fund may suit a long-term goal, while a liquid or debt-oriented fund may be more suitable for short-term needs.
Yes. You can track your SIPs, upcoming instalments, invested value, current value and returns on INDmoney.
You can also use Portfolio Analytics to review XIRR, benchmark comparison, allocation and fund-wise performance.
Start SIP In Mutual Funds On INDmoney
Open a free account, choose a mutual fund and set up a daily, weekly, monthly or quarterly SIP via INDpay UPI in minutes.