You can increase the SIP amount without canceling the existing SIP, by just topping up each month.
An auto debit SIP deducts the installment from your bank account. Now topping it up means adding a new mandate each time which is cumbersome. A better alternative is:
- Make an ad hoc extra amount investment as a top up each month.
- Start a fresh SIP when you are sure of your extra cash in your account; usually after a promotion or a pay hike. This is better since you can evaluate your previous SIP performance, and add a new one.
- Keep a manual SIP (or pay-as-you-go SIP) running in addition to your auto debit SIP. This can be done on portals like Jama.co.in This gives you flexibility to pay extra each month but without compulsion to pay. You will automatically get a payment link to make the investment.
- A smarter solution is to SIP into liquid funds for the entire amount you wish to invest (regardless of debt, equity). Setup Systematic Transfer Plans (STPs) which reallocate the money to the desired target funds. This is flexible since you can reshuffle your STPs any time and change the amounts.
STPs and the allocation strategies are supported at Jamā (Financial Planning and Direct Mutual Fund Investment Advisory Platform). Ain’t this a smarter way of investing?
