SIP — the boring strategy that quietly builds wealth
Systematic Investment Plans turn investing into a habit. By committing a fixed amount each month, you automatically buy more units when prices are low and fewer when high — a discipline called rupee-cost averaging.
The real magic is compounding plus time. A ₹10,000 monthly SIP at 12% for 25 years grows to over ₹1.9 crore — of which only ₹30 lakh is your money. The other ₹1.6 crore is pure compounded return.
Step-up SIPs are the single biggest upgrade most investors miss. Increasing your SIP by 10% every year (matching salary hikes) can deliver 50–80% more corpus versus a flat SIP over 20+ years.
SWP (Systematic Withdrawal Plan) is the mirror image — perfect for retirees. You park a corpus, withdraw a fixed monthly amount, and the rest keeps compounding. Used right, an SWP can outlast a pure FD by decades.
Tax-wise, equity SIPs enjoy ₹1 lakh LTCG exemption per year on gains held over 12 months; gains beyond that are taxed at 10%. Plan large redemptions across financial years to maximise the exemption.