Who Should Invest in SIP?
Definition
SIP is suitable for virtually every type of investor — from college students starting with ₹500/month to high-net-worth individuals investing lakhs. The flexibility, discipline, and accessibility of SIP make it the most inclusive wealth-building tool available in India today.
In Simple Words
SIP is designed for everyone who wants to build wealth over time. The only prerequisite is a regular income (or savings) and a long-term mindset. Whether you earn ₹20,000 or ₹2,00,000 per month, SIP allows you to invest proportionally. The ideal SIP allocation is typically 20-30% of your monthly income after expenses and emergency fund contributions.
Real-Life Scenario
Different investor profiles and their SIP strategies: 1. Ravi (22, Fresh Graduate, ₹30,000 salary): Starts ₹3,000 SIP. In 30 years at 12% return → ₹1.06 Crore 2. Neha (30, IT Professional, ₹1,50,000 salary): Starts ₹25,000 SIP. In 25 years → ₹4.74 Crore 3. Suresh (40, Business Owner, variable income): Starts ₹50,000 SIP. In 20 years → ₹4.99 Crore 4. Lakshmi (55, Pre-retiree, ₹2,00,000 salary): Starts ₹60,000 SIP in debt funds. In 5 years → ₹41.24 Lakhs (capital preservation)
Key Points to Remember
Frequently Asked Questions
Test Your Knowledge
1 questions to check your understanding
What percentage of monthly income is generally recommended for SIP?
Summary Notes
SIP is for everyone — there is no minimum income requirement
Start as early as possible, even with small amounts
Increase SIP amount as income grows (step-up SIP)
Clear high-interest debt before starting equity SIP
SIP works best with a long-term horizon of 7+ years