Investing

Investing in mutual funds offers various strategies tailored to meet different financial goals. Two popular methods are the Systematic Investment Plan (SIP) and the Systematic Withdrawal Plan (SWP). While they might sound similar, they serve distinct purposes. Let’s delve into the details of what is SWP and SIP, the difference between SIP and SWP, and how to decide which suits your financial objectives.

Understanding SIP vs SWP in Mutual Fund Investing

As the SIP and SWP full form suggests, SIP deals with systematic investments, whereas SWP deals with regular withdrawals.  In other words, SIPs are structured approaches to mutual fund investments. SIP focuses on the accumulation phase, helping investors build wealth over time, whereas SWP is designed for the distribution phase, providing regular income from existing investments.​ Seeking guidance from investment advisor services can help maximize the benefits of these investment strategies.

Why Investors Often Compare SIP vs SWP

Investors frequently go into SIP and SWP comparisons to determine the most suitable strategy for their financial needs. Understanding SWP vs SIP is crucial before aligning investment choices with personal financial goals, whether it’s wealth creation or generating a steady income stream.​

What is SIP (Systematic Investment Plan)?

SIP stands for Systematic Investment Plan. It’s a disciplined investment strategy where you invest a fixed amount in a mutual fund at regular intervals, such as monthly or quarterly. This approach allows you to build wealth gradually by contributing small, manageable amounts over time.

How SIP Works: Investing Small Amounts Regularly

With SIP, a fixed amount is automatically debited from your bank account and invested in a chosen mutual fund. This regular investment buys units of the fund, regardless of the market conditions, promoting a habit of consistent saving and investing. Over time, this strategy can help in averaging out the purchase cost of units, a concept known as rupee cost averaging.​

When is SIP suitable?

Now that we know what is SIP, let’s understand who can benefit from SIPs.  SIP is particularly beneficial for individuals aiming for long-term wealth creation. It’s ideal for goals like retirement planning, children’s education, or buying a house.

By investing regularly over an extended period, you can potentially benefit from the power of compounding and reduce the impact of market volatility.​ Using a SIP calculator helps investors estimate returns, plan investments efficiently, and make informed financial decisions to achieve their financial goals with discipline and consistency.

What is SWP (Systematic Withdrawal Plan)?

SWP stands for Systematic Withdrawal Plan. It’s a facility that allows investors to withdraw a fixed amount from their mutual fund investments at regular intervals, such as monthly or quarterly. This strategy provides a steady income stream from your existing investments.​

How does SWP work?

In an SWP, you specify the amount and frequency of withdrawals from your mutual fund holdings. On the chosen dates, the fund redeems the required number of units to provide the specified amount, which is then credited to your bank account. This process continues until you decide to stop or until your investment is exhausted.​

When is SWP suitable?

SWP suits individuals seeking regular income from their investments, making it ideal for retirees or those needing periodic cash flow. It allows you to enjoy the returns from your investments while keeping the principal amount invested, potentially continuing to earn returns.​

SIP vs SWP: Key Differences

Understanding the key differences between SIP and SWP can help you make informed investment decisions.

SIP vs SWP Comparison Summary

Feature	SIP	SWP
Purpose	Wealth creation	Steady Income Generation
Mode	Regular Investments	Regular Withdrawals
Best For	Young Investors, Salaried Professionals	Retirees, Income Seekers
Market Dependency	Invests at different market levels	Withdraws irrespective of market conditions
Taxation	Tax on capital gains upon redemption	Tax only on the capital gains portion
Flexibility	Can increase/decrease investment amount	Can adjust withdrawal amount as per needs

SWP vs SIP: Which One Should You Choose?

Choosing between SIP and SWP depends on your financial goals and life stage.

• Opt for SIP to build wealth over time through regular investments. It’s suitable for long-term goals like retirement, education, or purchasing a home.​
  
• Opt for SWP if you require a steady income stream from your existing investments. It’s ideal for supplementing your income during retirement or funding regular expenses.​

In some cases, a combination of both might be appropriate. For instance, you can use SIPs during your earning years to accumulate wealth and switch to SWPs during retirement to generate regular income.​

Evaluate your financial goals, risk tolerance, and investment horizon to choose the right strategy. Additionally, knowing what are SIFs can enhance your investment decisions. 

SIP vs SWP: Understanding the Differences and Choosing the Right Strategy

As mentioned earlier, while SIP is focused on wealth creation over time, SWP is designed to provide a steady income stream post-investment. Let’s dive deeper and understand their benefits, use cases, and how they can be combined for a comprehensive investment strategy.

SIP for Building Wealth Over Time

A Systematic Investment Plan (SIP) is a disciplined investment approach where investors contribute a fixed amount regularly—monthly, quarterly, or annually—into mutual funds. SIP helps in:

• Rupee Cost Averaging: By investing at different market levels, SIP ensures you buy more units when prices are low and fewer when prices are high.
• Power of Compounding: Long-term SIP investments benefit from compounding, as returns generate additional earnings over time.
• Affordability and Accessibility: Investors can start SIPs with small amounts, making them accessible to individuals with varying income levels.
• Diversification: SIPs allow investment in diversified mutual funds, reducing risk and enhancing returns over time.

Ideal for:

• Young professionals and salaried individuals looking to build wealth.
• Investors with long-term financial goals like retirement, child’s education, or homeownership.
• Those who prefer automated, hassle-free investments without market timing.

SWP for Creating a Steady Income Post-Investment

A Systematic Withdrawal Plan (SWP) allows investors to withdraw a fixed sum at regular intervals from their mutual fund investments. SWP is useful for:

• Generating Regular Income: Retirees and those needing a fixed income can set up SWP to receive monthly payouts from their invested amount.
• Avoiding Market Volatility: Unlike lump sum withdrawals, SWP ensures a stable cash flow while keeping a portion of the investment active.
• Tax Efficiency: Only the capital gains portion of the withdrawal is taxable, reducing tax liability compared to fixed deposits or lump sum withdrawals.
• Preserving Wealth: SWP helps extend investment life, ensuring steady withdrawals without quickly depleting funds.

Ideal for:

• Retirees looking for a steady post-retirement income.
• Individuals who need supplementary income without depleting their principal amount quickly.
• Investors who want to systematically withdraw profits without entirely exiting their mutual fund investments.

Combining SIP and SWP for a Complete Investment Life Cycle

While SIP helps accumulate wealth over time, SWP helps systematically withdraw funds when needed. Using both together ensures a complete investment lifecycle:

• SIP Phase: Invest regularly to build a significant corpus over 10-20 years.
• Transition Phase: Gradually shift funds from equity to debt funds to reduce market risk.
• SWP Phase: Withdraw a steady income while keeping the remaining investment growing in a safer asset class.

Use Case Scenarios: SIP vs SWP

1. A Young Professional Planning Long-Term Wealth

A 25-year-old starting their career can benefit from SIP by investing small amounts regularly. Over 20-30 years, the power of compounding helps grow their corpus significantly, making it a reliable strategy for future wealth creation.

2. A Retired Individual Seeking Monthly Income

A retiree with a mutual fund corpus can set up an SWP to withdraw a fixed monthly amount to cover expenses. This ensures financial independence while keeping a portion of their funds invested.

3. Investor Who Wants Both: Grow and Withdraw Strategically

An investor in their late 40s may choose to continue SIP for long-term growth while setting up a partial SWP to meet immediate expenses or specific financial goals, striking a balance between accumulation and withdrawal.

Conclusion

Both SIP and SWP serve different purposes in an investor’s financial journey. SIP focuses on disciplined savings and long-term growth, while SWP provides financial stability through structured withdrawals.

The choice between SIP and SWP depends on an individual’s financial goals and stage of life. Young investors should prioritize SIP for wealth accumulation, whereas retirees and those needing regular income should opt for SWP. A strategic combination of both ensures financial security and sustainability.

FAQs

Introduction

Why SIP and PPF Are Among the Most Popular Investment Options in India

Comparing PPF vs SIP? When starting your investment journey, you come across multiple pieces of advice from people already investing- some talk about going for safer options, while others advise you to aim for high-growth or market-linked investments. Among the different options, two common avenues mentioned include a Systematic Investment Plan (SIP) and Public Provident Funds (PPF). What is SIP and PPF? 

Purpose of This Guide: Help You Choose Based on Your Goals

SIP allows investors to put money in mutual funds regularly, while PPF is a government-backed savings scheme offering fixed interest. Both serve different financial goals. It is thus important to understand the difference between the two and choose the one that aligns better with your financial objectives, risk appetite, and investment horizon.

What is SIP (Systematic Investment Plan)

How SIP Works and Where It Invests Your Money

With SIP, you invest a fixed amount in mutual funds regularly. This installment can be set on auto-debit through your registered bank account, so the money is directly invested in the mutual fund at the set interval. 

SIPs benefit from rupee cost averaging (buying more units when prices are low and fewer when prices are high) and the power of compounding, which significantly boosts wealth creation in the long run. So, say you start investing Rs.12500 monthly for 15 years in a fund with a record average annual return of 12%. As per the output of a SIP calculator, after 15 years, the investment of Rs.22.5 lakh will grow to a corpus of around Rs.63.9 lakh. 

Types of Mutual Funds You Can Invest Through SIP

• Equity Mutual Funds: These are funds that invest in company stocks. The funds carry high risk and, hence, offer higher potential returns. These are best suited for long-term goals like retirement or wealth creation. 
• Debt Mutual Funds: The debt funds invest in fixed-income avenues such as government securities, corporate bonds, or treasury bills. They are less risky than equity funds and are suited for conservative investors looking for steady returns.
• Hybrid Funds: These invest in equities and debt instruments to balance risk and reward. Suitable for moderate-risk investors aiming for stability with some growth.
• Gold Funds: These funds invest in gold ETFs or the underlying gold assets. They are viable for investors looking to diversify their portfolio with an asset that acts as a hedge against inflation and market volatility.
• International & Global Funds: These funds invest in foreign markets. International funds focus on stocks outside India, while global funds invest in companies worldwide, including those from the investor’s home country. These funds provide geographical diversification to reduce domestic market risk.
• Open-ended Mutual Funds: These funds allow investors to buy and sell units at any time, with no fixed maturity. They are highly liquid, meaning you can redeem your investment anytime, making them ideal for those seeking flexibility in managing their investments.
• Equity Linked Savings Scheme Funds: ELSS funds are equity-based mutual funds that offer tax benefits under Section 80C of the Income Tax Act under the old tax regime. They come with a mandatory 3-year lock-in period and are suited for investors seeking both capital appreciation and tax relief.

Apart from mutual funds, another market-linked investment is SIF. What are SIFs? These are investment vehicles regulated by the Securities and Exchange Board of India (SEBI) that pool capital from accredited investors to invest in non-traditional assets, such as private equity, real estate, and infrastructure. Unlike conventional mutual funds, SIFs offer a more targeted approach and cater to high-net-worth individuals (HNIs) or accredited investors. 

What is PPF (Public Provident Fund)

Overview of PPF as a Government-Backed Investment

The Public Provident Fund (PPF) is a government-backed savings scheme that has a fixed tenure of 15 years, extendable in blocks of 5 years after maturity. Any Indian resident adult can open a PPF account, either in their own name or on behalf of a minor. 

The minimum deposit is Rs.500, with a maximum of Rs.1.5 lakh per financial year. Deposits can be made in lump sums or installments, and there is no limit on the number of deposits within a year, though the account must have at least Rs.500 annually to remain active. 

The interest rate for the PPF is fixed by the Ministry of Finance every quarter. The interest rate for the April–June 2025 quarter is 7.1% per annum, compounded annually. The PPF account has additional benefits like loan facilities after the 3rd year and partial withdrawals after the 6th year.

Features: Lock-In Period, Interest Rate, and Tax Benefits

• Low-Risk Investment with Guaranteed Returns: The PPF account is backed by the Indian government. It offers capital protection and is not subject to market risks. Plus, the funds in your PPF account are also safe from court attachments in case of debt defaults.
• Tax Benefits: PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. You get deductions under Section 80C for your contributions, and both the interest earned and the maturity amount are tax-free under the old tax regime.
• Loan and Withdrawal Flexibility: You can take a loan of up to 25% of the balance between the 3rd and 6th year. Partial withdrawals are allowed from the 7th year onward.
• Flexible Tenure Post Maturity: After the 15-year lock-in, you can either withdraw the corpus, extend the account with fresh contributions, or extend without any additional deposits for continued interest earnings.
• Tax-free interest: Historically, the interest rate has ranged from 7% to 8% per annum, compounded annually. The interest earned is credited to the account at the end of each financial year, and it is exempt from tax under Section 10(11) of the Income Tax Act as per the old tax regime. 

SIP vs PPF: Key Differences

1. Returns: Market-Linked vs Fixed Interest

SIP returns are tied to the mutual fund’s performance and can vary based on market conditions. Over the long term, SIPs have historically delivered annual returns of 10% to 15%, especially in equity funds. On the other hand, PPF offers a stable and fixed interest rate, usually between 7% to 8%. While the returns are lower, they are guaranteed.

2. Risk Level: Volatile vs Risk-Free

SIPs are exposed to market volatility, and there is no assurance of returns. This makes them suitable for investors with higher risk tolerance. In contrast, PPF is virtually risk-free as it is backed by the Government of India. The capital and interest are both guaranteed. 

3. Lock-In Period and Liquidity

SIP investments do not have a lock-in period unless made through ELSS (Equity Linked Savings Scheme), which has a 3-year lock-in. You can redeem your mutual fund units anytime, and the redemption amount is typically credited within 2–3 business days. PPF has a strict 15-year lock-in period, with only limited withdrawals allowed after 5 years and partial withdrawals from the 7th year.

4. Tax Benefits Under Section 80C

SIPs offer tax benefits under Section 80C (as per the old tax regime) only if the investment is made in ELSS mutual funds. However, returns from SIPs are subject to capital gains tax – 12.5% on long-term gains exceeding Rs.1.25 lakh in a financial year. In contrast, PPF follows the EEE (Exempt-Exempt-Exempt) model – your contributions, interest earned, and maturity proceeds are all completely tax-free.

5. Investment Tenure and Flexibility

In SIPs, you can start or stop investments at any time and change the amount. This makes SIPs ideal for people with fluctuating income or varying financial priorities. On the other hand, PPF requires a minimum yearly deposit of Rs.500 to keep the account active and has a fixed tenure of 15 years. Missing annual contributions can lead to account deactivation, which requires penalty payments for revival.

PPF vs SIP Returns: Historical Perspective

Returns from SIPs in Equity Funds (5–10 Years)

SIP investments in Birla Sun Life Equity Fund, ICICI Prudential Multi-Cap Fund, DSP BlackRock Opportunities Fund, HDFC Capital Builder Fund, and Franklin India Prima Plus yielded annualized returns that were close to or even exceeded 20% over the 15 years. Additionally, small-cap mutual funds have made average returns of around 30.62% and 20.45% in the past five and 10 years, respectively. 

While examples like these indicate the potential for wealth creation in mutual funds through SIPs, equity mutual funds have delivered average annual returns of 12%-15%. 

Source: Economic Times

PPF Interest Rate Trends Over the Last Decade

The interest rates for the Public Provident Fund (PPF) have been relatively stable over the past decade, ranging between 7% and 8.8%. More recently, specifically, from 2020 to 2025, the PPF interest rate has remained steady at 7.1%.

Which Option Has Outperformed Historically

Historically, SIPs in equity funds have outperformed PPFs by a significant margin in terms of returns. Over 15 to 20 years, SIPs in diversified equity mutual funds have consistently provided average annual returns between 17% and 20%, whereas PPF interest rates have hovered in the range of 7% to 8.8%.

SIP Investment vs PPF: Which is Better Based on Goals

When to Choose SIP Over PPF

If you aim to build wealth over the long term and are comfortable taking on some market risk, SIPs are the better choice. They are ideal for goals like retirement, children’s higher education, or buying a house.

When to Choose PPF for Long-Term Safety

If your priority is capital protection, predictable growth, and tax efficiency, PPF is a strong option. It works well for individuals with a conservative risk profile who want peace of mind through guaranteed returns and tax-free maturity. PPF is especially suitable for salaried individuals aiming to build a retirement corpus or save for a child’s education in a low-risk manner.

Balanced Approach: Investing in Both

Combining SIP and PPF in your portfolio can be a smart move, which is also suggested by shares advisory services. While SIPs help grow your wealth through market-linked returns, PPF ensures the safety of capital and steady compounding. This balanced strategy provides the best of both worlds – growth and security.

PPF vs SIP Comparison Table

Feature	SIP Investment	PPF
Returns	Market-linked (10%-15%)	Fixed (7%-8%)
Risk Level	High (depends on the market)	Risk-free
Lock-In Period	No lock-in (except ELSS funds)	15 years
Liquidity	Can redeem anytime	Partial withdrawal after 5 years
Tax Benefits	ELSS SIPs under 80C in old tax regime (returns taxable)	Fully tax-free under 80C as per the old tax regime
Flexibility	Can start/stop anytime	Fixed tenure, yearly deposit required

Conclusion

SIP and PPF Serve Different Purposes—Choose Based on Financial Goals

Both the SIP and PPF have unique advantages. While SIP is suitable for potential wealth creation, PPF is ideal for risk-free, tax-efficient savings. However, to choose between the two, it is essential to understand the PPF vs SIP comparison and PPF vs SIP returns​. 

Consider Your Risk Appetite, Time Horizon, and Tax Preferences

In SIP investment vs PPF, your investment choice should depend on how much risk you can take, your financial goals, and your need for liquidity. 

FAQs on SIP vs PPF

HCL Technologies is India’s third-largest IT services company in India by both revenue and market capitalization, after TCS and Infosys. Their performances are closely monitored by investors to predict future trends in the Indian IT space and the overall performance of the sector. 

Despite the volatility in the market, HCL share price has more than doubled in the last 5 years, comfortably outperforming larger peers like TCS and Infosys. ₹1 invested in HCL share price on 3rd April 2020 is now worth ₹3.78 on 1st April 2025 (excluding dividends), compared to ₹2.15 in TCS and ₹2.63 in Infosys. 

In this article, we will analyze HCL share price and its future growth potential. So, let’s dive in. 

Brief Overview of HCL Technologies 

HCL Technologies is a global IT services and consulting company headquartered in Noida, and was founded by Shiv Nadar in 1976. The company did its IPO in 1999 and currently offers a wide range of services, including software development, cloud computing, cybersecurity, Gen AI, and digital transformation. 

The company’s business is divided into four major segments:

Engineering & R&D Services: This segment includes product engineering, IoT, and industry 4.0 solutions.

IT and Business Services: Under this segment, the company offers a comprehensive suite of digital transformation solutions.

Digital Business Services: Under this segment, the company offers digital consulting, custom application services, application management services, and many more enterprise-specific solutions on next-gen operating model transformation.

Digital Foundation Services: Under this segment, the company offers digital transformation journeys to enterprises, offering next-gen AI and hyper-automation-led infrastructure services and digital solutions.

Digital Process Operations: Under this segment, the company helps enterprises to revolutionize customer experiences, modernize the business value chain end-to-end, unlock business capital by leveraging modern technologies. 

HCL Technologies Management Team

Mr. C Vijaykumar is the CEO and Managing Director of HCL Technologies. He joined the company in 1990 as an R&D Engineer and progressed through various roles and responsibilities. In 2016, he became the Chief Operating Officer, and in the same year, he was promoted to CEO of the company. Mr. Vijaykumar holds a bachelor’s degree in electrical and electronics engineering.

Mr. Ajay Bahl and Mr. Anil Ganjoo, are both Chief Growth Officers for the American region and look after different industries. Both are seasoned leaders with deep domain knowledge and have been with HCL Technologies for more than 25 years. 

Mr. Ashis Kumar Gupta is the Chief Growth Officer for the European and African regions and looks after diversified industries. He joined the company in 1998 and did his MBA from IIM Calcutta and B.Tech in Mechanical Engineering. 

Mr. Shiv Walia is the Chief Financial Officer, who began his professional career with HCL in 1993 and has over three decades of experience across geographies and businesses through multiple business cycles.

Mr. Ramchandran Sundararajan is the Chief People Officer at HCL Technologies.

HCL Technologies Shareholding Pattern

In the domestic institution segment, mutual funds hold an 8.19% stake in the company, and LIC holds a 4.52% stake. 

HCL Technologies Financials

Revenue From Operations

In FY24, the company’s revenue from operations increased by 8.3% on a year-on-year basis to ₹109,913 crore from ₹101,456 crore in FY23. 

And between April 2024 and December 2024 (9MFY25), it increased by 6.6% to ₹86,809 crores from ₹81,414 crore reported in 9MFY24. 

Diving deep into the revenue by business segment and geographical mix, we can see that HCL technology is earning a major part of its revenue from IT & Business Services and from the US region. 

Revenue by Business Segment

Segment	FY23 (₹ cr)	FY24 (₹ cr)	9MFY25 (₹ cr)	9MFY24 (₹ cr)
IT and Business Services	74,015	81,148	64,252	59,970
Engineering and R&D services	16,802	17,581	13,798	13,058
HCL Software	11,109	11,692	8,670	9,041

Geographical Mix

Region	FY24 (₹ cr)	FY24 (₹ cr)
Americas	63,435	57.7%
Europe	29,270	26.6%
Africa	3,815	3.5%
Rest of World	13,393	12.2%

Earnings Before Interest and Tax (EBIT)

It is also regarded as the operating income for the company. In FY24, the EBIT of the company increased to 8.3% to ₹20,027 crores from ₹18,483 crores in FY23. 

For 9MFY25, EBIT was ₹15,978 crores. The EBIT margin on December 2024 was 19.5%, which improved from 17.1%, recorded in June 2024.

Net Profit

The net profit of the company improved by 5.7% on a year-on-year basis to ₹15,702 crores in FY24 from ₹14,851 crores recorded in FY23. 

For 9MFY25, the company’s net profit improved by 11.73% to ₹13,090 crores, from ₹11,715 crores recorded in 9MFY24. 

HCL Technologies Key Metrics

Current Ratio: HCL Technology’s current ratio improved marginally by 4% in FY24 to 2.6 times from 2.5 times in FY23. 

Debt-to-equity Ratio: The company has marginal debt on its book, which represents lease payments, hence, the debt-to-equity ratio is not applicable. At the end of FY24, it was 0.1 times, similar to what was recorded in FY23. 

Return on Equity (ROE): The ROE of the company improved by 6% at the end of FY24 to 29% from 27.4% recorded in FY23. 

Return on capital employed: ROCE for FY24 increased to 36.6% from 34.5% in FY23. 

HCL Share Price Analysis 

Since its IPO in 1999, HCL share price has multiplied the wealth for its investors significantly, and had done multiple bonus issues and stock split over the years. 

In the last 5 years, HCL share price rose from ₹455 on 17th April 2020 to ₹1,470 on 3rd April 2025. It made an all-time high of ₹2,012 on 10th Jan 2025. 

The company has a consistent track record of paying dividends to its shareholders. In the last three financial years, it paid ₹30 in FY25, ₹53 in FY24, and ₹76 in FY23. 

At the current market price of ₹1,470, the dividend yield of HCL share price is 3.67%. And, HCL Technologies has maintained a very high dividend payout ratio in the last three financial years. In FY25, the dividend payout ratio was 90%, meaning it is distributing 90% of the profits of the company as dividends.

HCL Share Price Valuation Metrics

Earnings Per Share (EPS)

There has been a steady rise in the EPS of HCL Technologies in the last five years, aiding its share price growth. 

Period	FY20	FY21	FY22	FY23	FY24	9MFY25
EPS (₹)	40.75	41.07	49.74	54.73	57.86	48.26

Price-to-Book Value (P/B Ratio)

As of 3rd April 2025, HCL share price is trading with a price-to-book value of 5.8 times. The median 5-year Price-to-book value is 5.1 times, largely indicating the stock is trading at a slight premium compared to its book value. 

However, it has fallen down from a peak of 7.9 times, recorded on 10th Jan 2025, indicating favorable valuation. 

Price-to-Equity Ratio (PE Ratio)

As of 3rd April 2025, HCL share price is trading at a current PE of 23.4 times. Meaning that for every ₹1 of earnings, you are paying ₹23.4 as a premium. The 5-year median PE of the HCL share price is 22.2 times, largely indicating a slight overvaluation compared to its historical averages.

The stock PE has fallen from a peak 32.2 times, recorded on 10th January 2025. 

HCL Share Price Future Growth Price Potential

Despite being a leader in the IT and consulting space, HCL Technologies faces multiple headwinds that can affect its share price growth. Let’s discuss the challenges. 

US Economic Slowdown

The US economy has been going through a high level of uncertainty in recent months because of the elevated level of reciprocal tariff wars. Because of this, the economy is expected to witness inflationary conditions and lower growth. Fitch Ratings is expecting a slower growth of 1.7% in 2025. 

All these factors can affect the spending ability of corporates in the US, thus affecting the revenue growth of top-tier Indian IT companies, including HCL Technologies, which generates nearly 60% of its revenue from the US markets. 

Lower Revenue Growth

Due to cost advantages, the revenue of Indian IT companies has grown to double digits, but now the situation has reversed in the last 2 to 3 years. The growth has been restricted to the lower single digit. HCL Technologies’ revenue growth in FY24 was 8.8%, and 9MFY25 growth was 6.6%. 

And the management, too, has given a lower year-on-year revenue growth guidance of 4.5 to 5%.

Volatility in the US Dollar 

A rising US dollar is always a favorable situation for Indian IT companies as they earn a major part of their revenue in USD. That means they will get more rupee value for every dollar they earn. 

However, the volatility in dollar prices can also impact their earnings growth. For instance, the USD-INR depreciated from ₹87.22 to ₹85.08 in the last one month, which affects the revenue growth of Indian IT companies. 

However, despite the challenges, HCL Technologies has fairly managed to expand its client base with steady order wins. In the $100 million + deal category, HCL’s client count has increased from 15 in FY20 to 22 at the end of December 2024. Similarly, $50 million plus client count has increased from 31 to 53 in the same period, and $10 million plus client count has increased from 173 to 248. 

HCL Technologies has shown strong execution capabilities in different market cycles, and has been a consistent compounder. There are short term headwinds, which can make HCL share price volatile. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

Amid unpredictable market movements, investors increasingly consider the stability and discipline offered by SIPs (Systematic Investment Plans). However, besides knowing what is SIP, understanding the average return on SIP is also vital so that you can set realistic expectations.

Why Understanding SIP Returns Matters for Long-Term Investors

SIP investing promotes financial discipline by encouraging regular contributions regardless of market volatility. But more importantly, understanding the average return on SIP helps you:

• Set achievable financial goals
• Avoid disappointment from unrealistic expectations
• Compare fund options based on historical and risk-adjusted performance

Long-term investors who comprehend how SIP returns compound over decades tend to make better investment decisions and stay the course during market corrections.

SIP as a Wealth-Building Tool in India

SIPs have emerged as one of the most effective wealth-building tools for retail investors in India. The low entry barrier (as low as ₹500 per month), automatic investment mechanism, and the power of compounding make SIPs among the most popular choices. Especially in equity mutual funds, SIPs help average out costs and navigate market volatility—key factors in delivering sustainable returns over time.

What is the Average Return on SIP?

Before diving into numbers, it’s essential to understand what we mean by average return on SIP and how it differs from traditional return calculations.

Definition of Average Return in SIP Investing

The average return on SIP refers to the percentage of gains your regular investments have earned over a certain period. Unlike lump sum investing, SIP returns reflect the impact of periodic investments across fluctuating NAVs, making return calculations slightly more complex.

How SIP Returns Are Calculated (CAGR vs IRR vs XIRR)

To truly assess the average return on SIP, it’s essential to understand the different methods used to calculate it—each with its relevance and accuracy.

CAGR (Compound Annual Growth Rate) applies to lump sum investments and doesn’t suit SIPs well.

IRR (Internal Rate of Return) assumes evenly spaced investments—ideal for monthly SIPs.

XIRR (Extended Internal Rate of Return) is the most accurate for SIPs as it considers irregular cash flows and varying dates.

Thus, when discussing the average return on SIP, XIRR is typically the benchmark used by share market advisory firms or experts.

Average Return on SIP in India: Historical Data

To set realistic expectations, it’s helpful to look at how SIPs have performed in India over time—across both bull and bear markets—backed by historical data from the past decade.

Average Return on SIP in the Last 10 Years

Based on data from the Association of Mutual Funds in India (AMFI) and various mutual fund houses, the average return on SIP in India over the last 10 years ranges between 11% and 14% for equity mutual funds. Hybrid funds offer slightly lower returns (~9–11%), and debt funds even lower (~6–8%).

SIP Return Trends During Bull vs Bear Markets

In general, SIP returns tend to show contrasting behavior across market cycles. During bull markets, when stock prices rise steadily, SIPs benefit from consistent NAV appreciation, leading to higher returns over time. Conversely, in bear markets, when prices decline, SIPs accumulate more units at lower NAVs—resulting in lower short-term returns but potentially higher long-term gains once the market recovers. This averaging effect helps cushion volatility, making SIPs a resilient investment strategy across both market phases.

However, long-term SIPs tend to smoothen these fluctuations, leading to a more stable average return on SIP. 

Here’s a look at the performance of popular equity fund SIPs for 10 to 20 years:

SIP Returns from Popular Equity Funds

Fund Name	10-Year Return	15-Year Return	20-Year Return
HDFC Flexi Cap Fund	14.2%	13.5%	15.8%
SBI Bluechip Fund	13.0%	12.4%	14.6%
Axis Long-Term Equity Fund	12.7%	12.1%	–
ICICI Prudential Value Discovery	13.4%	14.2%	16.2%
Franklin India Prima Fund	12.5%	12.8%	14.7%

(Sources:  Economic Times, Business News Today, Money Control)

Average Return on SIP for 15 Years

For long-term investors, a 15-year investment period gives a clear picture of how SIPs perform through different market conditions. Over this time, SIPs in good equity mutual funds usually offer steady returns that beat inflation—often in double digits.

1. Performance of SIPs in Long-Term Mutual Funds

Over 15 years, equity SIPs have historically delivered average returns between 12% and 14%, depending on the fund category and market conditions. This sustained performance reflects the benefits of compounding, rupee-cost averaging, and the ability of mutual fund managers to navigate economic ups and downs effectively. Mid-cap, flexi-cap, and value-oriented funds often outperform over longer durations, provided the investments remain uninterrupted.

2. How Consistency Beats Market Timing Over 15 Years

Attempting to time market entry and exit points is a risky strategy, even for seasoned investors. In contrast, a disciplined SIP approach eliminates emotional decision-making and leverages market volatility to an investor’s advantage. By investing consistently, investors accumulate more units during downturns and benefit from their growth during recoveries. This long-term discipline typically outperforms erratic lump-sum investing, especially over 15 years.

Average Return on SIP for 20 Years

1. Historical Examples of SIP Performance Over 20 Years

Historical data reveals that equity SIPs have delivered 13–16% annually over 20 years, especially in diversified and flexi-cap funds. That’s the power of long-term investing: it not only evens out market noise but maximizes the benefit of compounding.

2. Impact of Compounding on Long-Term SIP Returns

Compounding plays a big role in boosting SIP returns over 20 years. For example, a ₹5,000 monthly SIP at 14% can grow to over ₹75 lakh in 20 years—while the same SIP gives only about ₹30 lakh in 10 years. That’s the power of time.

What is the Average Expected Rate of Return on SIP?

The average expected rate of return on SIP depends on several factors—most importantly, the type of mutual fund chosen, including:

Equity, Hybrid, and Debt Fund SIP Averages

• Equity Mutual Funds: These SIPs invest your money mainly in shares of companies, are known for their high growth potential, and are ideal for long-term goals.
  
• Hybrid Mutual Funds: These funds invest in equities and fixed-income instruments, offering a balanced approach. These are suitable for moderate-risk investors.
  
• Debt Mutual Funds: These low-risk funds invest in fixed-income securities like government bonds and corporate debt and offer stability with limited growth.
  

These averages represent historical trends. The actual average expected rate of return on SIP depends on the market cycle, fund type, and investment duration.

Risk-Adjusted Return Expectations Based on Fund Type

Every mutual fund type offers a different return potential based on the level of risk it carries:

• Equity funds may deliver higher returns, but they come with higher short-term volatility. Investors need to stay invested longer to balance out market ups and downs.
  
• Hybrid funds provide more stable returns by spreading investments across equity and debt. They’re ideal for those who prefer a balance between growth and safety.
  
• Debt funds are the least volatile but also offer lower returns. They work well for short- to medium-term goals or investors with a low risk appetite.
  

When choosing among the types of mutual funds in India, investors must consider their risk appetite and investment horizon.

Factors That Affect SIP Returns

Several key factors influence how your SIP performs over time. These are:

1. Market Volatility and Timing

Short-term market corrections can reduce returns, but long-term SIPs tend to average out these fluctuations.

2. Fund Selection and Risk Category

Investing in consistently performing funds with lower downside risk is key to a better average return on SIP.

3. Duration and Consistency of Investment

Longer durations and consistent contributions unlock the true potential of compounding.

4. Expense Ratio and Exit Load

These fees can eat into returns. Always factor them in when calculating your net returns.

How to Use SIP Calculators to Estimate Returns

The SIP calculator is a simple tool for estimating the future value of your investments based on your monthly amount, expected return, and investment duration.

Understanding Expected Value Based on Amount, Duration, and Rate

SIP calculators let you input your monthly amount, expected return, and duration to estimate the future value. It simplifies goal-based planning.

Tools to Use for SIP Return Calculation

• Online SIP calculators from fund houses or portals 
• Excel formulas using XIRR
• Mobile apps

These tools help project the average return on SIP and plan accordingly.

Common Myths About SIP Returns

Despite their popularity, SIPs are often misunderstood—let’s clear up some common myths that can mislead investors about how SIP returns work.

1. SIPs Always Guarantee 12–15% Return

No, returns vary based on fund type and market conditions. SIP is a mode of investing—not an assured return product.

2. SIP is Risk-Free Because It’s Monthly

While SIPs reduce volatility, they still involve market risk, especially in equities.

3. Longer Duration = Always Higher Return

Longer durations increase the probability of better returns but do not guarantee it. Fund choice and market cycle still matter.

Conclusion

Key Takeaways on Average SIP Returns Over 10, 15, and 20 Years

Over a 10 to 20-year period, SIPs have consistently proven to be powerful tools of investment. The average return on SIP tends to improve with time—typically ranging from 11–14% over 10 years, 12–14% over 15 years, and up to 15–16% over 20 years, especially in well-managed equity mutual funds. Longer durations lead to better compounding benefits and more stable returns. 

Focus on Consistency, Fund Choice, and Time — Not Just Returns

Rather than chasing high returns or trying to time the market, focus on investing consistently, choosing funds that match your risk profile, and staying invested for the long haul. SIPs reward patience, not predictions—and the longer you stay committed, the stronger your financial outcomes will be.

Most importantly, before deciding to invest, consult reliable financial advisors who can guide you through all the nuances of SIPs or even what SIFs or any other financial instrument are. 

FAQs on Average Return on SIP

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In today’s ever-changing financial landscape, investors must be thoroughly aware of the investment instruments they choose, along with all their aspects, whether it’s what are SIFs or whether it is SIP safe. With growing awareness about mutual funds and the push for systematic financial planning, SIPs (Systematic Investment Plans) have gained massive popularity. However, safety remains a primary concern. 

This blog looks at SIP, risks, and innovative strategies around SIPs to help you make informed decisions.

Why ‘Is SIP Safe?’ Is One of the Most Asked Questions

For many first-time investors, SIP is an easy entry into mutual funds. It’s automated, consistent, and doesn’t require a deep market understanding. However, that simplicity often leads to a misconception: SIPs are risk-free. Because SIP is tied to mutual fund performance and market dynamics, it’s essential to ask: Is SIP safe or not?

The concern arises due to the volatility of the stock market. People want to grow their money without risking their savings—hence, is it safe to invest in SIP? You must consult stock market advisory to understand the nuances, but let’s dig deeper to understand it.

Let’s Break Down the Safety of SIP Investments in Simple Terms

SIP investments are designed to bring discipline and consistency to your financial habits. SIPs can help reduce emotional investing and market-timing errors when done right and aligned with your financial goals. So, while whether or not an SIP investment is safe depends on multiple factors, the process is designed to manage risk better.

What is SIP and How Does It Work

1. A Quick Recap of SIP for New Investors

SIP, or Systematic Investment Plan, is a method of investing a fixed amount regularly (usually monthly) into a mutual fund scheme. SIPs are especially useful for salaried individuals who prefer spreading investments over time rather than a one-time lump sum.

2. Understanding the Systematic Approach to Investing

SIP investments use rupee cost averaging to buy more mutual fund units when the market is down and fewer units when the market is high. Over time, this averages out your cost per unit. Additionally, the power of compounding means your returns can multiply as your investment grows year after year.

Is SIP Safe or Not?

1. SIP is Safe in Structure But Subject to Market Risks

The SIP mechanism is secure—it avoids impulsive decisions and enforces regular savings. However, the returns depend entirely on the performance of the mutual fund you choose. So, while SIP is structured, the risk lies in the underlying asset. Equity mutual funds carry a higher risk than debt or hybrid funds.

2. Why SIP Doesn’t Eliminate Risk But Helps Manage It

SIP investment is safe or not and depends on your investment horizon. It doesn’t shield you from market crashes, but it spreads the risk. That is, when prices are low, your SIP buys more units, and when prices are high, it buys fewer — helping average out your investment cost over time, which also helps cushion long-term volatility.

3. How SIP Encourages Long-Term, Disciplined Investing

SIP creates financial discipline by encouraging regular, systematic investing without the temptation of timing the market. It turns investing into a habit, allowing you to grow wealth gradually. Over time, this approach helps avoid speculative behavior and build a corpus aligned with your life goals.

Is SIP Safe for Long-Term Investment Goals

1. Power of Compounding and Rupee Cost Averaging Over Time

Your returns benefit from compounding when you stay invested for 5, 10, or even 20 years. That means you earn returns not just on your invested amount (the principal) but also on the returns generated over time. 

Combined with rupee cost averaging, SIP becomes an innovative tool for long-term financial planning. For example, if you invest ₹1,000 every month and the fund’s NAV (price per unit) is ₹50 one month and ₹25 the next, you’ll get 20 units in the first month and 40 in the second. Over time, this helps average out your purchase cost and reduce the impact of market volatility.

2. Examples of SIP Returns Over 5–10 Years

Historical data shows that equity mutual fund SIPs have delivered 10-15% CAGR over 10 years. While past performance doesn’t guarantee future results, their consistent performance over time may help long-term SIPs in quality funds tend to outperform.

3. Market Volatility vs SIP Discipline

During downturns, a SIP accumulates units at lower prices. When markets recover, these units appreciate, leading to strong returns. This is why SIP is considered safe for the long term if done with patience and purpose.

Factors That Make SIP Relatively Safer Than Lump Sum

1. Averaging  the Market Highs and Lows

Instead of a lump sum, SIP invests a fixed amount regularly—whether the market is up or down. This means you buy fewer units when prices are high and more units when prices are low, which helps average out the cost per unit over time, reducing the impact of short-term market volatility.

2. No Need to Time the Market

One of the biggest mistakes investors make is trying to time the market. SIP removes this anxiety by making investing a routine.

3. Flexibility to Pause, Stop, or Modify SIPs

Unlike fixed instruments, SIPs can be paused, increased, or reduced anytime. This gives investors control during financial emergencies.

When SIP May Not Be Safe (or Suitable)

1. Investing Without Goal Planning or Time Horizon

If you start a SIP without a clear goal, you might exit early and miss out on long-term benefits. Aligning SIPs to goals like retirement, education, or buying a house brings clarity.

2. Choosing Risky Mutual Funds Without Research

Not all mutual funds are equal. High-risk sectoral or thematic funds may not suit conservative investors. Choosing the wrong fund makes even a good SIP plan unsafe.

3. Expecting Guaranteed Returns from SIPs

SIP is a method, not a product. There are no guaranteed returns. Misunderstanding this can lead to disappointment.

How to Make SIP Investments Safer

1. Align SIPs With Long-Term Goals

Map each SIP to goals like retirement, children’s education, or home purchase. This helps you stay invested for the right duration.

2. Choose SIPs Based on Risk Appetite

Conservative investors can go for debt or hybrid funds, while aggressive ones can explore equities. Use a SIP calculator to project future value and compare fund types.

3. Monitor Fund Performance Periodically

While SIP encourages a hands-off approach, checking your fund’s performance once a year helps ensure you’re on track.

Conclusion

SIP is One of the Safest, Disciplined Ways to Invest—When Done Right

It instills discipline, removes market timing worries, and promotes long-term wealth creation. But safety depends on fund selection, goal clarity, and patience.

It’s Not Risk-Free, But It’s Risk-Managed

So, is SIP safe? While it cannot guarantee returns, it is one of the smartest ways to manage market risk over time and build financial security. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

Investing in mutual funds is one of the many ways to grow your investments over time. A common term in this space is AMC SIP, which often confuses investors. While many understand Systematic Investment Plans (SIPs), the role of an Asset Management Company (AMC) in SIP investments is less clear. Knowing what is AMC SIP can help investors make informed decisions and choose the best investment route for their financial goals.

Why is AMC SIP a Commonly Misunderstood Term?

As the AMC SIP full form suggests, it combines two key concepts: Asset Management Companies (AMCs) and Systematic Investment Plans (SIPs). While SIPs are a method of investing, AMCs are the institutions that manage these investments. Understanding how they work together is crucial for making informed investment decisions.​

What You Will Learn in This Blog

In this article, we’ll break down:

• The role of AMCs in SIP investments​.
• The meaning of AMC SIP and how it differs from other SIP methods​.
• The steps to start a SIP directly with an AMC​.
• A comparison of top AMCs in India.
• The differences between AMC SIPs and regular SIPs​

By the end, you will understand AMC SIP meaning and how to utilize them effectively.

What is AMC in SIP?

AMC Full Form: Asset Management Company  

An Asset Management Company (AMC) is a firm that pools money from various investors to invest in a diversified portfolio of securities. These companies manage mutual funds, ensuring the pooled investments are allocated effectively to achieve the fund’s objectives.​

Role of an AMC in Managing SIP Investments

When you invest in a mutual fund through an SIP, the AMC is responsible for:

• Fund Management: Making investment decisions to meet the fund’s goals.​
• Compliance: Ensuring all investments adhere to regulatory standards.​
• Reporting: Providing regular updates on fund performance and holdings.​

The AMC’s expertise plays an important role in the success of your investments.​

AMCs vs Brokers or Platforms: What’s the Difference

While AMCs manage the funds, brokers or platforms like Zerodha, Groww, or banks act as intermediaries, facilitating the purchase and sale of mutual fund units. Investing directly through an AMC means bypassing these intermediaries, which can lead to cost savings and more direct control over your investments.​ Additionally, seeking guidance from a stock market advisory can help you make informed decisions, choose the right funds, and align your investments with financial goals for better returns.

What is AMC SIP?

AMC SIP Meaning Explained for Beginners

An AMC SIP refers to setting up a Systematic Investment Plan directly with the Asset Management Company without involving third-party platforms or brokers. This direct approach allows investors to invest in mutual funds through periodic contributions, offering a disciplined way to build wealth over time.

Investors exploring various financial options may also wonder – what are SIFs, which refers to Special Investment Funds offering alternative investment opportunities based on specific financial goals and risk appetite.

AMC SIP vs. SIP Through Platforms 

• Direct AMC SIP: Investing directly with the AMC often results in lower expense ratios since there are no intermediary fees. It provides direct access to the fund’s Net Asset Value (NAV).​
  
• SIP Through Platforms: While platforms offer a consolidated view of various funds from different AMCs, they might charge additional fees or commissions. However, they provide convenience by allowing investors to manage multiple investments in one place.​

Pros and Cons of Investing Directly via AMC SIP

Pros:

• Lower Costs: No intermediary fees mean reduced expense ratios.​
  
• Direct Control: Investors directly relate directly with the AMC, leading to more transparency.​
  
• Access to Direct Plans: Direct plans often have better returns due to lower costs.​
  

Cons:

• Multiple Accounts: Investing with multiple AMCs requires managing separate accounts for each.​
  
• Limited Fund Options: Each AMC offers its own set of funds, limiting diversification options compared to platforms that aggregate funds from various AMCs.​

How to Start SIP With an AMC?

If you understand what is SIP, you can directly start with an AMC that involves a few straightforward steps:

1. Choose the Right AMC Based on Fund Offerings

Research various AMCs to identify those that offer funds aligning with your investment goals and risk tolerance.​

2. Complete Online or Offline KYC

Complete the Know Your Customer (KYC) process, which is mandatory for mutual fund investments. This can be done online by providing documents like a PAN card, address proof, and a photograph.​

3. Select Fund, Amount, Frequency, and Start Date

Once KYC is complete:

• Select the Mutual Fund Scheme: Choose a fund that aligns with your investment objectives.​
  
• Decide on the Investment Amount: Determine how much you want to invest in each installment.​
  
• Set the Frequency: Decide how often you want to invest (e.g., monthly or quarterly).​
  
• Choose the Start Date: Select a date for the first installment.​

4. Track SIPs Using AMC’s Portal or App

After setting up the SIP, use the AMC’s online portal or mobile app to monitor your investments, view statements, and make necessary adjustments.​

Top AMCs in India Offering SIPs

Some of the leading AMCs in India include:​

• HDFC Mid-Cap Opportunities Fund invests in mid-sized companies aiming for growth. It carries a high risk and seeks to provide long-term capital appreciation with a fund size of Rs.67,579 crores.
• SBI Magnum Midcap Fund invests in mid-cap equity, targeting long-term capital growth.  It’s a high-risk fund aiming to capitalize on the potential of growing companies with a fund size of Rs.19,392 crores.
• ICICI Prudential Midcap Fund invests in mid-sized companies seeking capital appreciation. It’s a high-risk fund aiming for long-term growth by leveraging mid-cap potential with a fund size of Rs.5,394 crores.
• Franklin India Prima Fund invests in mid-cap stocks, aiming for long-term capital appreciation. It’s a high-risk fund focusing on growth potential within the Indian market with a fund size of Rs.10,594 crores.

Source: ET Money

How to Compare AMCs Before Starting an SIP

Selecting the right Asset Management Company (AMC) for your Systematic Investment Plan (SIP) is crucial for maximizing returns and minimizing risks. Here are key factors to consider before starting an AMC SIP:

1. Fund Performance

Look at the historical performance of the mutual funds offered by an AMC. While past performance doesn’t guarantee future returns, a fund with a consistent track record over 5–10 years indicates strong fund management.

2. Expense Ratio

The expense ratio is the annual fee charged by the AMC for managing your funds. Lower expense ratios result in higher take-home returns. Direct SIPs with AMCs often have lower expense ratios than regular SIPs.

3. Fund Manager’s Expertise

A skilled fund manager plays a crucial role in fund performance. Check the fund manager’s experience, investment strategy, and past success in managing different market conditions.

4. AMC’s Reputation and Size

Large AMCs such as HDFC Mutual Fund, ICICI Prudential Mutual Fund, and SBI Mutual Fund manage billions of rupees and have a solid reputation. Established AMCs generally have better risk management practices and stronger research teams.

5. Investment Options

Some AMCs specialize in equity funds, while others focus on debt or hybrid funds. Choose an AMC that offers diverse funds that align with your investment goals and risk appetite.

6. Customer Service & Digital Experience

A good AMC should offer a user-friendly online platform, allowing investors to easily track, modify, or pause their SIPs. Also, check for responsive customer support in case of issues.

AMC SIP vs Regular SIP: Is There a Difference?

Many investors wonder whether they should opt for an AMC SIP or a Regular SIP. The primary difference lies in how and where the investment is made.

Understanding Direct vs Regular SIP Routes

• AMC SIP (Direct SIP):
  
  • Invests directly with the Asset Management Company.
  • It has lower expense ratios, leading to higher returns over time.
  • Requires managing investments across multiple AMC portals.
    
• Regular SIP (Through a Broker/Platform):
  
  • Invests through a broker or a third-party platform (e.g., Zerodha, Groww, Paytm Money).
  • Charges an additional commission, reducing overall returns.
  • It offers convenience by aggregating multiple AMCs on one platform.
    

When to Prefer AMC SIP Over Third-Party Platforms

• If you want lower costs and higher returns, AMC SIPs are a better choice.
• A platform-based SIP may be more suitable if you prefer consolidated tracking and easy switching between funds.
• If you are a long-term investor with knowledge of mutual funds, direct AMC SIPs provide higher control and cost efficiency.

Conclusion

Investing in an AMC SIP removes intermediary commissions, lowering costs and enhancing returns. Using a SIP calculator can help estimate potential earnings and plan investments effectively. If you like managing investments independently, AMC SIPs offer direct access to fund performance, NAV, and fund manager reports, ensuring better transparency and decision-making.

FAQs on AMC SIP