Perpetual SIP Meaning: Everything You Need to Know

No matter whether you are new to investing or someone who has been investing for years, there is still a need for a proper understanding of the concepts. Especially when it comes to mutual funds, people usually think that there is only lumpsum or SIP investment. But over time, people are now exploring SWP and other options as well.

One such option that you should know about is the perpetual SIP meaning. A perpetual SIP lets your investment continue without choosing an end date. It keeps your savings active, steady, and automatic. But the question is, why should you consider this?

Well, if you are also considering the same, then read this guide. Learn everything you need, starting from what is perpetual SIP to its benefits, here in the guide.

What Is Perpetual SIP

A perpetual SIP is a SIP setup where you allow the investment to continue without selecting any end date. This means that you do not make the SIP investment with a fixed duration of say 3 or 5 years. But you leave the mandate open. 

This allows the SIP to keep running every month until you manually stop it. This makes it useful for long-term wealth creation. As the investment never pauses on its own, there is no need for renewal as well, which makes it a great choice for those who wish easy investment process. 

Features of Perpetual SIP

• The SIP runs without any end date.

• Perfect for long-term financial goals.

• Helps with wealth creation.

• Easy auto debit makes investment tracking simpler.

• Reduced the chances of missing payments.

• Ensures you go ahead with steady and regular investing.

How Perpetual SIP Works

A perpetual SIP functions like a regular SIP, but without an end date. Once you set it up, it will work on its own and will continue to grow. The best part is that you can invest in any type of mutual fund that you wish when you are going for the perpetual SIP.

The general steps that you need to follow when you are investing in the perpetual SIP are as follows:

Step 1: Select the Mutual Fund and SIP Amount

Choose the fund you want to invest in. It can be any fund, like an equity or debt fund, a hybrid fund, or any other. The decision should be based on your risk and return profile. Then you must decide the monthly amount. This sets the foundation for your long-term plan.

Step 2: Pick the SIP Start Date

Select the date on which your SIP should be deducted each month. It is best that you keep a date which is near your salary date, as this will ensure that your payments go smoothly. If you are self-employed, you can select a date at your convenience. 

Step 3: Leave the End Date Blank

Do not choose an end date. This is what makes the SIP perpetual and keeps it running without expiry. Also, this will ensure that your money continues to grow for a long time with the help of the power of compounding. 

Step 4: Complete the Bank Mandate

Submit the auto debit mandate. This will ensure that the amount is debited on its own without the need for any intervention. This will get debit from your bank account only. 

Step 5: SIP Runs Automatically Each Month

Your investment continues without interruption or renewal. The instalments flow until you stop them yourself.

Step 6: Modify or Cancel Anytime

Even with no end date, you still have full control. You can edit the amount or cancel the SIP at any time. This can be done by visiting the investment platform which you used to start the SIP or even by visiting the expert who helped you.

Pros and Cons of Perpetual SIP

A perpetual SIP has clear strengths for long-term investors, but it also needs periodic review. Even when there is no end date, you still need to keep an eye on the investment portfolio. Also, at times, you would need to do the portfolio rebalancing. But there are certain pros and cons that you must know. 

Pros

• Easy long-term investing since there is no expiry date.

• No need to track or renew the SIP mandate.

• Ensures timely and regular payments. 

• Helps you save more.

• Guides for long-term wealth creation.

Cons

• Investors may forget to review the SIP over time.

• Alignment with the goal can be hard.

• Not good if you fail to review regularly.

Perpetual SIP vs Normal SIP

While both forms of the SIP work in the same manner, there are certain points of difference that you must know. These are as follows:

Who Should Invest in a Perpetual SIP

A perpetual SIP suits anyone who wants to invest in a fund with no worry about the renewals or management. Here are some points to know:

• Long-term goal planning.

• Beginners who want simple investing.

• Busy professionals who may forget renewals or are comfortable with high riskometer ratings too.

• Investors who want continuous wealth building.

• Anyone who prefers automatic, uninterrupted SIPs.

Conclusion

A perpetual SIP is a simple way to stay invested for the long term without tracking end dates or renewals. It gives you steady discipline, continuous investing, and a smooth path toward building wealth. As long as you review your funds once or twice a year, a perpetual SIP can support most long-term financial goals with ease.

Start your SIP journey with Rupeezy and invest with confidence today.

FAQs

What is the main benefit of a perpetual SIP?

It keeps running without an end date, making long-term investing simple.

Can I stop a perpetual SIP anytime?

Yes, you can cancel or pause it whenever you want.

Does perpetual SIP give higher returns?

The returns still depend on the fund you invest in, so this cannot be certain.

Is perpetual SIP safe for beginners?

Yes, it is easy to set up and needs no renewal.

How is perpetual SIP different from a normal SIP?

A normal SIP ends on a set date, while a perpetual SIP continues until cancelled.