covid-19 economy

Understand the SIP top-up facility to use it better

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Mutual fund investors are being urged to participate in the investment opportunities in equity markets as the economy grapples with the impact of covid-19.

One frequent advice given to investors is to top-up systematic investment plans (SIP) to benefit from this. Here is what you need to keep in mind while considering this option.

SIP top-up facility allows you to increase the SIP instalment by a defined amount after a fixed period. This could be a percentage of the existing SIP amount, say 10%, or multiples of a minimum amount defined by the mutual fund, say multiples of ₹500.

The frequency of increasing the amount is typically half-yearly or annual. Investors can specify the upper limit to cap the top-up either in terms of the amount or

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