Compare SIP categories, risk, costs and selection factors. Use the SIP calculator to model your own assumptions.
| Category | Common use | Risk | What to compare |
|---|---|---|---|
| Index Fund | Broad-market exposure | Market-linked | Index, expense ratio, tracking difference |
| Flexi Cap | Flexible equity allocation | Market-linked | Portfolio, costs, process and consistency |
| Large Cap | Large-company exposure | Market-linked | Portfolio, costs and diversification |
| Mid Cap | Higher-growth equity exposure | Higher market risk | Volatility, portfolio and time horizon |
| Small Cap | Smaller-company exposure | Higher volatility | Drawdowns, portfolio and time horizon |
| ELSS | Equity-linked tax-saving route | Market-linked | Lock-in, portfolio, costs and tax rules |
Choosing the right SIP plan requires evaluating several factors: fund category (large cap, mid cap, flexi cap), historical returns over 5 and 10 years, expense ratio (lower is better — aim for below 1% for direct plans), fund manager track record and tenure, and alignment with your investment goal and time horizon. For most investors starting SIP in 2026, a flexi cap or large cap fund through direct plan is the recommended starting point.
Direct plans have no distributor commission — expense ratio is 0.3-0.7% lower than regular plans. Over 20 years, this difference compounds to ₹15-25 lakh more in returns on a ₹5,000/month SIP. Always invest in direct plans through AMC websites, Zerodha Coin, Groww, or Upstox. Regular plans through agents or banks may seem convenient but cost you significantly more over time.
ELSS SIP: Eligible for 80C deduction up to ₹1.5L per year — only available under old tax regime. Lock-in 3 years per installment. Returns above ₹1.25L per year taxed at 12.5% LTCG. Non-ELSS equity SIP: LTCG (held 12+ months) at 12.5% above ₹1.25L annual exemption. STCG (held less than 12 months) at 20%. Debt fund SIP: Gains taxed at income slab rate regardless of holding period.