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Should you invest in SIPs for perpetuity?

More investors are also doing top-ups in their existing SIPs as and when they get an increment

Priya Nair 

While filling out the mutual fund application form for a systematic investment plan (SIP), chances are you have opted to invest for perpetuity. That is, if you did not choose a specific time plan, the investment runs for perpetuity by default. But it may not necessarily be a bad idea. Choosing to invest for perpetuity ensures that you will not forget to renew your SIP and thereby miss out on the reinvestment opportunity, say experts. A Balasubramanian, chief executive officer (CEO), Birla Sun Life Asset Management Company says for the past three years, there is an increasing ...

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Should you invest in SIPs for perpetuity?

More investors are also doing top-ups in their existing SIPs as and when they get an increment

While filling out the mutual fund application form for Systematic Investment Plan (SIP), chances are that you have opted to invest for perpetuity. That is, if you did not choose a specific time plan while the investment runs for perpetuity by default. But it may not necessarily be a bad idea. Choosing to invest for perpetuity ensures that you will not forget to renew your SIP and thereby miss out on the reinvestment opportunity, say experts. A Balasubramanian, CEO, Birla Sun Life Asset Management Company says that for the past three years there is an increasing trend that most SIPs are getting registered for perpetuity. "Earlier investors would subscribe for SIP for one year. But nowadays investors are subscribing for perpetuity. If you contract for one year then you have to renew it. And most of the time people forget to renew it", he says.If not perpetuity, investors should ideally sign up for a SIP in a diversified equity fund for 10 years says Sundeep Sikka, CEO, Reliance Nippon . While filling out the mutual fund application form for a systematic investment plan (SIP), chances are you have opted to invest for perpetuity. That is, if you did not choose a specific time plan, the investment runs for perpetuity by default. But it may not necessarily be a bad idea. Choosing to invest for perpetuity ensures that you will not forget to renew your SIP and thereby miss out on the reinvestment opportunity, say experts. A Balasubramanian, chief executive officer (CEO), Birla Sun Life Asset Management Company says for the past three years, there is an increasing ... image
Business Standard
177 22

Should you invest in SIPs for perpetuity?

More investors are also doing top-ups in their existing SIPs as and when they get an increment

While filling out the mutual fund application form for a systematic investment plan (SIP), chances are you have opted to invest for perpetuity. That is, if you did not choose a specific time plan, the investment runs for perpetuity by default. But it may not necessarily be a bad idea. Choosing to invest for perpetuity ensures that you will not forget to renew your SIP and thereby miss out on the reinvestment opportunity, say experts. A Balasubramanian, chief executive officer (CEO), Birla Sun Life Asset Management Company says for the past three years, there is an increasing ...

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Business Standard
177 22