Perpetual SIPs in India: Build Wealth Without Stopping
Imagine setting up a mutual fund investment once and letting it run for decades-no reminders, no manual transfers, no thinking about it. That’s what a perpetual SIP does in India. It’s not magic. It’s math. And it’s working for hundreds of thousands of middle-class investors who started with as little as ₹500 a month and ended up with lakhs-or even crores-over time.
Most people think SIPs are just a way to invest monthly. But perpetual SIPs? They’re different. You don’t stop. You don’t pause. You don’t cash out until retirement, or until your child’s education, or until you’re ready to buy that house you’ve been dreaming of. The money keeps flowing, automatically, every month, year after year.
How a Perpetual SIP Actually Works
A perpetual SIP isn’t a special product. It’s a habit wrapped in automation. You pick a mutual fund-say, a large-cap index fund or a balanced advantage fund-and link it to your bank account. You set the amount. You set the date. And then you forget about it. No need to re-enroll. No need to renew. The system keeps debiting your account and buying units until you tell it to stop.
This isn’t theoretical. In 2024, over 42 million active SIP accounts were registered in India, according to AMFI data. Of those, nearly 18 million had been running for more than five years. And a growing number-over 3 million-were running for ten years or more. These aren’t just investors. They’re wealth builders who never interrupted their rhythm.
Let’s say you started a ₹3,000 SIP in a fund averaging 12% annual returns in 2016. By 2026, you’d have invested ₹3.6 lakh. But your corpus? Around ₹7.8 lakh. Now, keep going. At the same rate, by 2036, you’ll have invested ₹6.6 lakh-and your value will be over ₹22 lakh. That’s compounding in motion. No extra effort. Just time.
Why Most People Fail at SIPs (And How Perpetual SIPs Fix It)
The biggest reason SIPs don’t work for most people? They stop.
They quit when the market dips. They pause when they need cash for a wedding or medical bill. They switch funds after hearing a friend’s hot tip. They think, “I’ll restart next month.” But next month never comes. Or when it does, they invest less. Or they wait for the “right time.”
Perpetual SIPs remove all that noise. You don’t time the market. You don’t react to headlines. You don’t second-guess. You just keep going. And that’s the secret. The market doesn’t care if you’re scared. It doesn’t care if your neighbor made a quick profit. It only cares if you’re still buying.
Historical data from NSE shows that investors who stayed in equity SIPs through the 2008 crash, the 2020 pandemic drop, and the 2022 rate hike cycle ended up 40% ahead of those who paused for even six months. The difference wasn’t skill. It was consistency.
Which Funds Are Best for Perpetual SIPs?
Not every fund works for a perpetual SIP. You need something that lasts. Here’s what does:
- Large-cap index funds - Low cost, steady growth. Think Nifty 50 or Sensex funds. They don’t try to beat the market. They just own it. Expense ratios under 0.2% are common.
- Balanced advantage funds - These automatically shift between equity and debt based on market valuations. Perfect for hands-off investors. They reduce volatility without sacrificing long-term returns.
- Flexi-cap funds - Invest across market caps. Good if you want exposure to mid and small caps without picking individual stocks. Look for funds with a 5-year track record of outperforming their benchmark.
Avoid sectoral funds, thematic funds, or aggressive hybrid funds if you’re setting up a perpetual SIP. These need active monitoring. You want something that runs on autopilot for 15, 20, or 30 years.
Real-Life Examples: What Perpetual SIPs Have Done for Real People
Meet Priya, a school teacher from Pune. In 2012, she started a ₹2,500 SIP in a large-cap index fund. She didn’t touch it. Not when her husband lost his job in 2015. Not when inflation hit 7% in 2020. Not when her daughter’s tuition fees went up. She increased the SIP by ₹500 every two years, keeping pace with her salary hikes.
By 2026, she had invested ₹8.4 lakh. Her corpus? ₹31.6 lakh. She didn’t retire. But she used ₹15 lakh to buy a second home. The rest? Still growing.
Then there’s Arjun, a software engineer in Bengaluru. He started a ₹7,000 SIP in a flexi-cap fund at 24. He never changed the fund. He never checked the NAV. He didn’t even know the fund’s name. He just saw the debit in his account and moved on. By 35, he had ₹1.1 crore. He didn’t need to work until 60. He quit at 38 to start a small tech school.
These aren’t outliers. They’re examples of what happens when you remove emotion from investing.
How to Set Up a Perpetual SIP (Step by Step)
Setting one up takes less than 15 minutes. Here’s how:
- Choose your fund - Stick to large-cap, balanced advantage, or flexi-cap. Use platforms like Groww, Coin by Zerodha, or MFU to compare expense ratios and past returns.
- Link your bank account - Use net banking or UPI. Most platforms now allow auto-debit without needing a mandate form.
- Set the SIP date - Pick a date 2-3 days after your salary lands. That way, you won’t risk a failed debit.
- Set the amount - Start with what you can afford. ₹1,000? ₹5,000? Doesn’t matter. The key is to never stop.
- Turn on perpetual mode - On most apps, this is labeled “Continue indefinitely” or “No end date.” Make sure it’s checked.
- Set a review date - Not to stop. To increase. Mark your calendar for every 2 years. When your salary goes up, increase the SIP by 10-15%.
That’s it. No more action needed.
The Hidden Benefit: Inflation Protection
Perpetual SIPs don’t just grow your money. They protect it from inflation.
Over the last 20 years, India’s average inflation rate has been around 6%. That means something costing ₹100 in 2006 costs ₹320 today. Cash doesn’t keep up. Fixed deposits? After tax, they barely beat inflation. But equity mutual funds? They’ve delivered 12-14% returns on average over the same period.
A perpetual SIP is your defense. Every rupee you invest today buys fewer units. But over time, those units multiply. And as your SIP increases with salary, you’re buying more units at higher prices-exactly what you need to outpace inflation.
What Happens When You Stop?
Some people think: “I’ll stop when I hit my goal.” But goals change. A ₹50-lakh target for a child’s education in 2020 might be ₹1.2 crore in 2030.
Stopping too early is the biggest mistake. If you stop after 10 years, you lose the power of the next 10-20 years of compounding. The biggest gains don’t come in the first decade. They come in the second.
One study by Value Research found that investors who continued their SIPs for 20+ years made 3.5 times more than those who stopped after 10 years-even if the latter invested more per month. The difference? Time.
When Should You Pause a Perpetual SIP?
There are only three good reasons to pause:
- You need emergency cash and have no other savings.
- You’re moving abroad and your bank account won’t support auto-debits.
- You’re switching to a different investment strategy (e.g., starting a business).
Anything else? Don’t pause. Don’t reduce. Don’t switch. Just keep going.
Final Thought: The Silent Wealth Machine
A perpetual SIP is the quietest, most powerful wealth tool in India today. It doesn’t require genius. It doesn’t need luck. It just needs you to show up-month after month, year after year.
You don’t have to be rich to start. You don’t have to be smart to succeed. You just have to be consistent.
Start small. Set it and forget it. Let time and compounding do the rest. The market will move. The economy will shift. Your job might change. But if your SIP keeps running? Your wealth will keep growing.
Can I increase my SIP amount later?
Yes. Most platforms allow you to increase your SIP amount anytime-no paperwork needed. You can set it to auto-increase by 10% every year or manually adjust it after a salary raise. The key is to never reduce it.
What if I miss a SIP payment?
One missed payment won’t stop your SIP. Most platforms will retry the debit for 2-3 days. If it fails again, the SIP continues next month. But if you miss three in a row, the system may pause. Check your bank balance and ensure sufficient funds on the SIP date.
Are perpetual SIPs safe?
The SIP itself is just a payment instruction-it’s not risky. But the underlying mutual fund is subject to market risk. That’s why choosing a well-managed, low-cost fund matters. Avoid funds with high turnover, poor track records, or high expense ratios. Stick to large-cap or balanced funds for long-term safety.
Do I need to pay taxes on perpetual SIPs?
Yes. When you redeem units, capital gains tax applies. For equity funds held over 1 year, gains above ₹1 lakh are taxed at 10%. No tax on dividends. The longer you hold, the more you benefit from indexation and lower tax rates. Don’t redeem just because you think you’re “done”-plan your exit.
Can I have multiple perpetual SIPs?
Absolutely. Many investors run 2-3 SIPs: one for long-term wealth, one for education, one for retirement. Just make sure each one has a clear goal. Don’t overdo it-3-4 SIPs are enough for most people. More than that becomes hard to manage.
