SIP for Salaried Employees: Build Wealth Automatically

A regular salary is a real advantage for investing. You can commit to a fixed amount each month with far less uncertainty than a business owner faces.

Why do SIPs work so well on a salary?

• Timing: money leaves before you can spend it.
• Regular buying: you buy every month, whichever way the market moves.
• A built-in step-up: your annual increment can fund a higher SIP without changing your lifestyle.

How much should I invest from my salary?

Returns are assumed and not guaranteed. Build an emergency fund and buy term and health cover before investing heavily.

What is the best date for a SIP?

The date makes little difference to returns over the long term. What matters is that money is in your account when the debit runs, so set it two or three days after your salary usually arrives.

What about my EPF?

EPF is a good debt-like base, but on its own it usually does not grow fast enough for long-term goals. Count it as part of your debt allocation, then use equity SIPs for growth. Check your total mix when you rebalance.

Should a salaried person choose ELSS?

Only if you use the old tax regime and have room left in your deduction limit. Under the default new regime there is no deduction, so compare funds on their merits. Read more on ELSS.