Mar 17, 2017 3 min read

When Should I Increase the SIP Investment Amount?

If you are among those who wish to invest in SIP or want to increase SIP amount and need assistance, then you must read this blog. It will make you understand the concepts and let you know how you can add value to your current investment portfolio in a smarter way.
Do you want to increase the SIP amount in your mutual fund investments, or you want to keep it constant forever? A lot of people start with a small SIP amount in the beginning and then look forward to increasing the same at some later date. This is quite common among the various investors, but the question they ask is how to do so? Here you will get the solution for the same.

Investing in SIP is very convenient, which results in accumulating capital for a financially secure future. The benefits of SIP include the power of compounding, the rupee-cost averaging, and strategic investing.

Increase SIP amount

When we talk about “SIP”, it refers to the constant investments whose value does not increase as a particular amount is regularly invested. While calculating the investment amount using the SIP Calculator, the SIP value is generally very high which everyone desirous of small investing cannot afford at some point in time. But if one wishes to add some more value in the current investment, what should he/she do? The clear solution for the same is the “Increasing SIP”, where one can start the SIP with a lower amount and gradually increase the same year on year. As one’s income also increases gradually, this form of investing looks more realistic and favourable for the investors. This provides the investors with an opportunity to grow their money in a systematic way by enhancing their invested capital from time to time. It is quite obvious that higher the investments, greater are the returns.

How can you add money to your current SIP investment?

You might be having various questions in this regard and would be looking for their solutions. Our fund advisors have sorted out your concern here. The investors seeking an increase in SIP amount can begin with the same using simple steps. They are just required to click on the increase amount option available right in front of the scheme in which they make investment and fill in the amount they want to increase on a monthly basis. As a result, your SIP amount will be increased, and you would be able to make more profits on the same.

When is the right time to increase SIP amount?

Yes, this question is something which is an important one from the investors’ point of view. For investments which are made for wealth creation or for securing the financial future every time an appraisal is received, the investors must make an increase in their current SIP value. This will form a systematic investment in a disciplined manner and will result in creating a desired future. You would be able to make your financial goals accomplished without bearing the burden of paying a huge amount of money for investment.

The financial advisors generally advice that whenever you get an appraisal on your income, you should increase your SIP amount so as to create more wealth. The concept and logic are no wonder an apt one, but the decision solely depends on the requirement of the investor. In case the investor has made investments for achieving a predefined goal after making adequate planning, then increasing the SIP amount in such investment may not be that fruitful for the investor. In that case, one can opt for another option, i.e., another scheme for fund investment and associate the same with another financial goal.

If you too find the mutual fund SIP a better option for accomplishing your financial goals and wish to take a better decision regarding the increase or top-up SIP, then you must avail our free of cost financial advisory services. We will help you in building your financial future. MySIPonline and its team have always been available for the investors to help them make the best use of their money.