What's the Ideal Duration for Investing in SIP?

Published: 17th Aug 2024

By: Value Research

Why SIP works?

Through SIPs, you invest small amounts regularly in mutual funds. This disciplined approach helps grow wealth over time and averages your investment cost.

Keep time on your side

The longer you stay invested through SIPs, the lower your risk. But how long is long enough?

The three-year threshold

For zero risk of loss, a SIP should last more than three years. Any shorter period and you might be gambling with your money.

A simple rule

Invest money over half the time it took you to earn it, with a maximum of five years for larger sums. For instance, the annual bonus could be invested over a period of six months.

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