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Differences between regular SIP and triggered SIP

Differences between regular SIP and triggered SIP

Systematic Investment Plans (SIPs) have become increasingly popular in recent years as an easy and accessible tool for those looking to start investing. The beauty of SIPs lies in the fact that they allow investors to invest in any mutual fund of their choice with minimum monthly contributions, making it an ideal option for individuals who want to begin their investment journey without having to commit a large sum of money upfront. However, with the growing popularity of SIPs, investors now have to navigate through various types of SIPs available, making it difficult to decide which one would be the best fit for their investment needs. Two popular options are regular SIPs and triggered SIPs, each with its own set of advantages and disadvantages. In this article, we will delve into the differences between regular SIPs and triggered SIPs to help investors make an informed decision on which type of SIP would work best for them.

What are regular SIPs?

Regular SIPs are a form of investment option in which an individual invests a certain amount of money in little increments over time. This differs from lump-sum investment, in which the investor invests the entire amount at once.

Regular SIP are often used to invest in mutual funds, which can be equity or debt-based. Equity funds invest in equities and have the potential to create better long-term returns. Debt funds, on the other hand, are more secure investments that are less volatile in the market.

When it comes to regular SIPs, the investor determines the quantity and frequency of investment. The money can be invested at monthly, quarterly, or annual intervals, depending on the investor’s preference. This allows consumers to invest tiny sums at a time without having to worry about market timing. 

What are triggered SIPs?

A triggered SIP (Systematic Investment Plan) is an automated investment plan that allows investors to systematically invest a fixed amount of money at regular intervals. This type of plan is used to accumulate a desired sum of money over a pre-defined period of time.

Triggered SIPs give investors the option to adjust the amount they are investing at any point in time. For example, an investor can choose to increase the amount of money they are investing during periods of market volatility, or reduce the amount they are investing if the market is performing better than expected. This flexibility allows investors to maintain control over their investments, allowing them to adjust the amount they are investing in order to maximise their returns.

Regular SIPs vs triggered SIPs – The differences

  • Regular SIPs are the most common type, where investors invest a fixed amount of money at regular intervals, usually monthly. In contrast, triggered SIPs allow investors to invest in mutual funds based on market conditions or specific triggers.

  • With regular SIPs, investors can plan their investments in advance and set aside a fixed amount of money each month, making it easier to budget and manage their finances. Triggered SIPs, on the other hand, may require investors to constantly monitor the market and adjust their investment amounts accordingly, which can be time-consuming and stressful.

  • Regular SIPs usually come with lower fees and charges as they are a more straightforward investment option. In contrast, triggered SIPs may come with additional fees and charges as investors may need to pay for additional services, such as trigger monitoring or customization.


Regular SIPs are an excellent choice for long-term investors who want to build a disciplined investment approach and are willing to invest a fixed amount of money over a prolonged period. Triggered SIPs may be more suitable for investors who want to exploit market fluctuations and invest opportunistically. Understand your goals to choose the right SIP option for you.


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