Flexi-SIP Calculator
50,45,760
51,43,836
98,076
Regular SIP vs Flexi-SIP Wealth Growth
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Valuation-Based SIP Strategy
Models dynamic investing: buying more when market PE is low (cheap) and less when PE is high (expensive).
Worked Example: ₹10,000 base budget over 15 years
Flexi-SIP: How Rohit Used Market Valuations to Boost His Returns
Rohit loved value investing. He hated buying stocks when they were expensive and loved buying when they were cheap. He wanted to apply this philosophy to his mutual fund SIPs, so he set up a Flexi-SIP strategy.
Instead of a constant ₹10,000 monthly contribution, Rohit adjusted his SIP based on the Nifty PE ratio: investing ₹5,000/month when PE was high (>24), ₹10,000 when PE was fair (19-24), and ₹15,000 when market valuations were cheap (<19).
Over 15 years, this valuation-based strategy allowed Rohit to accumulate more units during market corrections. Combined with a slight return outperformance from smart buying, his Flexi-SIP grew to ₹55.2 Lakhs compared to ₹50.5 Lakhs for a regular constant SIP. He gained a ₹4.7 Lakh advantage.
Flexi-SIPs harness market cycles to optimize your purchase cost. While they require a higher cash buffer to support increased investments during market drops, they offer a disciplined, systematic way to buy low and sell high.
Frequently Asked Questions
What is a Flexi-SIP?
A Flexi-SIP is an investment feature where your monthly contribution amount is dynamically adjusted based on market valuations (like the PE ratio of Nifty), investing more when markets are low and less when markets are high.
Does Flexi-SIP beat a regular SIP?
Yes, historically value-based Flexi-SIPs outperform regular SIPs by 0.5% to 1.5% CAGR because they systematically accumulate more mutual fund units when valuations are cheap.
What are the rules of Flexi-SIP?
A standard setup adjusts allocations: investing 0.5x your base SIP budget during market peaks (PE > 24), 1.0x during fair valuation (PE 19-24), and 1.5x during market corrections (PE < 19).
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