How to Make Money with SIPs: A Practical Playbook

1) Respect compounding & time in market

Returns come in lumpy bursts. Long horizons let winners run and smooth temporary drawdowns. Avoid timing the market; instead, time in the market.

2) Use a sensible asset mix

• Short goals (≤3y): debt-heavy SIPs; focus on stability.
• Medium goals (3–7y): balanced advantage / hybrid aggressive / large-mid cap.
• Long goals (7y+): diversified equity core; small-cap as a small satellite.

3) Step-Up your SIP annually

Increase SIP 5–10% every year. This mirrors income growth and compounds faster. Try it in our calculator — enable “Annual Step-up %”.

4) Pick funds for process, not headlines

• Prefer consistent, low-drawdown funds over one-year winners.
• Watch costs — expense ratios matter over decades.
• Check manager tenure and documented investment approach.