About Systematic Investment Plans
Loanpao’s Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in mutual funds, starting as low as ₹500. SIPs promote disciplined investing, leveraging rupee cost averaging and compounding to build wealth over time, ideal for both beginners and seasoned investors.
Why Choose SIPs?
- Investment Amount: Starts at ₹500/month, no upper limit
- Tenure: Flexible, from 1 year to no upper limit
- Returns: Market-linked, historically 10–12% p.a. for equity funds (not guaranteed)
- Flexibility: Pause, increase, or stop SIPs anytime
- Tax Benefits: ELSS SIPs eligible for Section 80C (up to ₹1.5 lakh)
- Rupee Cost Averaging: Reduces impact of market volatility
- Compounding: Long-term growth through reinvested returns
Are You Eligible?
| Criteria | Requirement |
|---|---|
| Applicant Type | Indian resident (individuals, HUFs, minors via guardians) |
| Age | 18+ (minors via guardian) |
| KYC Compliance | Mandatory for mutual fund investments |
| Bank Account | Active savings account for auto-debit |
| Investment | Minimum ₹500/month (varies by fund) |
What Documents Do You Need?
- KYC: Aadhaar, PAN, or passport
- Address Proof: Utility bill or rental agreement
- Bank Details: Cancelled cheque or bank statement
- Photograph: Passport-size (for physical applications)
- Mutual Fund Form: SIP registration form (online/offline)
Indicative Returns
| Monthly SIP (₹) | Tenure | Expected Return | Maturity Value (₹) |
|---|---|---|---|
| 5,000 | 10 years | 10% p.a. | ~10,27,000 |
| 5,000 | 10 years | 12% p.a. | ~11,61,000 |
| 10,000 | 15 years | 12% p.a. | ~44,98,000 |
Extra Charges:
- Fund Management: 0.5–2% p.a. (expense ratio)
- Exit Load: 0–1% if redeemed within 1 year (varies by fund)
Note: Returns are illustrative, based on historical equity fund averages (10–12% p.a.). Actual returns are market-linked and not guaranteed.
Calculate Your SIP Returns
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How to Start an SIP
- Visit loanpao.in or a mutual fund platform (e.g., AMC website, distributor).
- Complete KYC online or offline.
- Choose a mutual fund (e.g., equity, debt, ELSS) based on goals.
- Register SIP with monthly amount, tenure, and debit date.
- Set up auto-debit via bank account.
- Track investments via platform or AMC portal.
- Redeem units anytime (subject to exit load, if applicable).
Common Questions About SIPs
What is an SIP?
A Systematic Investment Plan allows regular, fixed investments in mutual funds, promoting disciplined wealth creation.
Are SIP returns guaranteed?
No, SIP returns are market-linked and subject to risks, unlike fixed-income schemes like SCSS.
What is the minimum SIP amount?
₹500/month for most funds, though some may require ₹1,000.
Can I pause or stop my SIP?
Yes, you can pause (temporarily) or stop SIPs anytime without penalties.
Are there tax benefits?
ELSS SIPs qualify for Section 80C (up to ₹1.5 lakh); other SIP gains are taxed (LTCG/STCG).
Can NRIs invest in SIPs?
Yes, NRIs can invest in SIPs with KYC and an NRE/NRO account.
What are the risks of SIPs?
Market risks affect returns, especially in equity funds. Rupee cost averaging mitigates some volatility.