But as a tactical strategy to benefit from low market levels, the top-up facility may not work efficiently One frequent advice given to mutual fund investors these days is topping up their systematic investment plans (SIPs), to participate in equity opportunities as the economy grapples with the impact of the covid-19 pandemic.
Here is what you need to keep in mind while considering this option. The SIP top-up facility allows you to increase the SIP instalment by a defined amount after a defined interval.
This could be as a percentage of the existing SIP instalment amount, say, 10%, or multiples of a minimum amount defined by the mutual fund, say, multiples of ₹500.